Student Aid Fraud Oversight and Accountability Act of 2026

This bill amends the Higher Education Act of 1965 to enhance oversight of federal financial aid disbursement by requiring the Secretary of Education to prioritize program reviews for certain institutions. Specifically, the Secretary must identify institutions that disburse federal financial aid to students whose Free Application for Federal Student Aid (FAFSA) presents a reasonable suspicion of identity fraud . However, an institution can be excluded from this identification if it demonstrates that it verified the student's identity using in-person or live audiovisual methods before disbursement and notified the Secretary. This measure aims to strengthen safeguards against financial aid fraud by ensuring institutions take proactive steps to confirm student identities. Identification under this provision informs oversight activities but does not automatically constitute a determination of non-compliance.