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Students will soon have to show a government-approved ID either in person or online in order to receive federal aid.
Photo illustration by Justin Morrison/Inside Higher Ed | michaeljung and robas/iStock/Getty Images
College financial aid offices and students’ advocates say that a Trump administration plan to crack down on fraud in the federal aid system could burden university staff and hinder access to college programs.
Although they support fighting fraud as a concept, they particularly worry that real, eligible Pell Grant recipients will get caught up in the detection system and won’t be able to jump through the extra hoops to verify their identity.
“In general, verification is a little bit of threading the needle between making sure that the right dollars are going to the right students, but also not putting up an inordinate number of barriers, particularly to low-income students, that are insurmountable,” said Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators. “You have to walk a fine line between those two things.”
Department of Education officials, however, say their plan, announced June 9, is necessary to protect American taxpayers from theft and won’t become a burden for colleges. They aren’t worried about students losing access, either.
Ultimately, the Trump administration plans to verify the identity of each financial aid applicant with the help of a new system that should be up and running “this fall,” according to the department’s announcement. Before then, the department is planning to screen more first-time applicants for verification—a process that could affect 125,000 students this summer and will be handled by financial aid offices. (About 40,000 students were checked last year, according to a department spokesperson.)
McCarthy, however, is concerned that if the new system isn’t ready by the fall, “institutions will be assuming this larger burden for a longer, indeterminate amount of time.” The department’s botched launch of the 2024–25 Free Application for Federal Student Aid showed the challenges of standing up new systems quickly, she noted.
A senior official at the Department of Education told Inside Higher Ed that the Office of Federal Student Aid and the department procurement team are in the process of purchasing an identity-validation product similar to the ones used by financial services companies like banks. The product would be incorporated into the online FAFSA portal.
If an individual is flagged for potential fraud at any point while filling out the form, a pop-up box would appear with a live staff member on the other side, the official explained. The applicant would then be asked to display a government-issued ID. If that ID is deemed valid, the person could then continue.
“Once that’s done, the process is over,” the official said. “That’s really as simple as that effort is. I believe rental car companies are using it, too.”
The official was optimistic that the department could have the system up and running by early September, though that won’t be soon enough to get aid disbursed in time for the fall semester. The official also acknowledged that the timeline means that colleges may have to do some verification in person even in the fall, but that process should not be too much of a burden for the college or the student. Similar to the online process, a student would just need to show a valid ID to a college financial aid administrator, either in person or over a video call. Previously, when identity verifications were conducted, students had to present a Statement of Educational Purpose and submit a notarized copy of their identification document.
But advocacy groups that work with low-income students worry that even requiring a government-issued ID could give some students a leg up over others when it comes to accessing financial aid and affording to enroll in college.
“We want to see fraud eliminated as much as anyone else … We just need to make sure that gets balanced with a reasonable process for students,” said MorraLee Keller, a senior consultant for the National College Attainment Network. “A lot of low-economic kids may not have secured, for example, a driver’s license. If they don’t drive, they may not have a driver’s license, and that is probably the primary form of a government-issued valid ID that most people would be able to present.”
Keller noted that some states may have alternate IDs available for those who do not drive, but even that may take time to obtain if a student doesn’t already possess it.
“We want to make sure that timing doesn’t interrupt the aid getting credited to their account to pay their bills on time so that they could start classes, get refunds to go get their books and all those kinds of things,” she said. “So one of the questions that we still need answered is, what else would be considered a valid ID?”
The California Community College system, which has grappled with increasing financial aid fraud, recently considered an application fee to help screen legitimate students from fraudsters. A spokesperson for the system said they are waiting on additional guidance from the department before they can know how big a deal this shift will be.
“We wouldn’t be able to speculate on the level of concern among students and institutions until the federal guidance is known,” she wrote. But “financial aid fraud is a nationwide trend and additional identification verification processes will help in the fight against it.”
