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This bill amends the Higher Education Act to require the Department of Education to implement an identity fraud detection system to review all Free Applications for Federal Student Aid (FAFSA) submitted on or after October 1, 2026. If the system flags an application as presenting reasonable suspicion of identity fraud, the applicant and their designated institutions must be notified, and institutions must verify the applicant's identity through in-person or live audiovisual verification before disbursing federal aid. The Secretary of Education must report to Congress on the system's design by November 2026 and conduct annual evaluations of its effectiveness.
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