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Senators unveil bill to combat financial aid fraud by 'ghost students'

Video Proposed 'Stop Nick Shirley Act' sparks debate on free speech Sen. Ashley Moody, R-Fla., explains the controversial "Stop Nick Shirley Act" in California, which critics say criminalizes investigative journalism.prosperity.

FIRST ON FOX — A bipartisan batch of senators is introducing a measure that seeks to prevent fraudsters from sapping federal student aid.

The proposal aims to block the fraudsters, often referred to as "ghost students," from utilizing stolen or fake identities to file Free Application for Federal Student Aid (FAFSA) applications and obtain federal student aid money, Sen. Ashley Moody's, R-Fla., office said in an announcement obtained by Fox News Digital.

Sens. Tommy Tuberville, R-Ala., and Maggie Hassan, D-N.H., are joining Moody on the introduction of the "No Aid for Ghost Students Act of 2026."

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Sen. Ashley Moody, R-Fla., leaves the Senate floor after a vote at the U.S. Capitol on Oct. 21, 2025. (Bill Clark/CQ-Roll Call, Inc)

"Taxpayer-funded student aid should go to students — not fraudsters gaming the system. This legislation takes common-sense steps to verify identity, strengthen oversight, and ensure federal dollars are not wasted," Moody noted in a statement.

The senator, who previously served as Florida's state attorney general, joined the U.S. Senate last year to fill the vacancy caused by Marco Rubio's departure from his seat to serve as President Donald Trump's secretary of state.

Florida Gov. Ron DeSantis appointed Moody to the Senate seat in January 2025, and she is now seeking to win the seat in a November 2026 special election to serve the remainder of the term.

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U.S. Sen. Tommy Tuberville, R-Ala., speaks to reporters as he returns to his office at the U.S. Capitol on Feb. 10, 2026 in Washington, D.C. (Kevin Dietsch/Getty Images)

"Our young students work night and day to earn their spot on campus. Zero federal student aid should go towards ghost students who are stealing money from Americans. As Co-Chair of the Senate Health, Education, Labor, and Pensions task force to root out waste, fraud, and abuse in education, I am proud to introduce this bill and will not stop until we eliminate all fraud," Tuberville said in a statement obtained by Fox News Digital.

"Scammers are deploying increasingly sophisticated tactics to steal money and federal financial aid from hardworking Americans. In the face of these scams, we need to do more to protect students and taxpayer dollars," Hassan added. "This bipartisan bill will require that the federal government establish an identity fraud detection system during the student financial aid process, catching scammers on the front-end before tax dollars leave the government’s bank account. I will continue to combat the scourge of scams and ensure that higher education is accessible for all Americans."

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The U.S. Department of Education recently "launched a new, real-time fraud detection capability" pertaining to the FAFSA form. The department noted that "fraud detection is built directly into the FAFSA itself, with every applicant evaluated in real-time using risk-based identity screening."

"Applicants who display a certain level of fraud risk will now be required to present government-issued identification before accessing federal student aid funds such as Pell Grants and federal student loans," the department said.

Eric Mack is a writer for Fox News Digital covering breaking news.

Read original at Fox News

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