Department of Education Cracks Down on Student Aid Fraud and Erroneous Payments
Introduction
The U.S. Department of Education has announced a sweeping set of reforms and technological upgrades aimed at combating fraud and erroneous payments within federal student aid programs. This action follows a comprehensive review that uncovered nearly $90 million in aid disbursed to ineligible recipients, including deceased individuals and those lacking eligibility due to immigration parole status. The Department’s new measures include the resumption of automated post-screening of student aid records, enhanced real-time data sharing with the Social Security Administration, and the implementation of advanced identity verification tools for FAFSA applicants. These efforts mark a return to stricter oversight after a period of loosened controls and are designed to restore accountability, protect taxpayer funds, and ensure that aid reaches only eligible students.
