#aaith ,,congress #b;d ,session ,h4 ,r4 #ghib ,,an ,,act ,to amend the ,higher ,education ,act of #aife to require to the ,secretary of ,education to use an identity fraud detection system to review each ,,fafsa to determine whether the ,,fafsa presents a reasonable suspicion of identity fraud4 #a4 ,short title ,this ,act may be cited as the ,no ,aid for ,ghost ,students ,act of #bjbf4 #b4 ,identity fraud detection system 7a7 ,identity fraud detection system ,section #dhc of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajij7 is amended by adding at the end the following3 7e7 ,identity fraud detection system 7#a7 ,in general ,in addition to1 or in conjunction with1 other verification processes carried out under this title1 the ,secretary shall-- 7,a7 use an identity fraud detection system to screen and assess each application submitted under this section on or after ,october #a1 #bjbf1 to determine whether the application presents a reasonable suspicion of identity fraud based on one or more indicators associated with suspected fraud risk2 and 7,b7 carry out notifications in accordance with paragraph 7#b74 7#b7 ,notification of reasonable suspicion of identity fraud ,if the ,secretary determines that an application submitted under this section presents a reasonable suspicion of identity fraud1 the ,secretary shall-- 7,a7 provide the applicant with notice-- 7i7 of such determination2 7ii7 that the information described in subparagraph 7,b7 will be transmitted to each institution of higher education designated by the applicant in the application2 and 7iii7 that the applicant is subject to additional identity verification requirements in accordance with section #dhg7;a77#ae77;,b72 and 7,b7 transmit to each institution designated by the applicant in the application1 a notice-- 7i7 that such application presents a reasonable suspicion of identity fraud2 and 7ii7 that the applicant is subject to additional identity verification requirements to be carried out by the institution in accordance with section #dhg7;a77#ae77;,b71 before the institution may disburse ,federal financial aid under this title to such applicant4 7#c7 ,congressional notices and report 7,a7 ,notices ,the ,secretary shall submit to the authorizing committees-- 7i7 not later than ,november #a1 #bjbf1 a written description of the identity fraud detection system required under this subsection2 and 7ii7 not later than #cj days after implementing any substantial change to such system1 a written description and rationale for such change4 7,b7 ,annual evaluation and report ,not later than ,october #a1 #bjbg1 and annually thereafter1 the ,secretary shall conduct an evaluation of the effectiveness of the identity fraud detection system carried out under this subsection1 and submit to the authorizing committees a report on the use and effectiveness of such system4 7#d7 ,rule of construction ,nothing in this subsection shall be construed to prohibit the ,secretary from meeting the requirements of paragraph 7#a71 in whole or in part1 through a capability or system used by the ,secretary on or before the date of enactment of the ,no ,aid for ,ghost ,students ,act of #bjbf4 4 7b7 ,additional verification requirements 7#a7 ,amendments ,section #dhg7;a77#ae7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#ae77 is amended-- 7,a7 by striking 7#ae7 ,the institution acknowledges and inserting 7#ae77;,a7 ,the institution acknowledges2 and 7,b7 by adding at the end the following new subparagraph3 7,b7 ,beginning on ,october #a1 #bjbf1 the institution will not disburse ,federal financial aid under this title to an applicant with an application under section #dhc that presents a reasonable suspicion of identity fraud under section #dhc7;e71 unless the institution1 directly or through a contracted third-party service provider and in accordance with procedures established by the ,secretary-- 7i7 before the disbursement of such aid-- 7,i7 determines that a reasonable suspicion of identity fraud is not present by confirming the identity of such applicant using-- 7aa7 in-person identity verification2 7bb7 live1 synchronous audiovisual identity verification2 7cc7 identity verification compliant with ,national ,institute of ,standards and ,technology ,identity ,assurance ,level #b 7,,nist ,,ial#b71 or an equivalent successor2 7dd7 any additional identity verification method approved by the ,secretary that provides a level of identity assurance that is equal to or greater than the level of assurance provided by an identify verification method described in items 7aa7 through 7cc72 or 7ee7 a combination of two or more of the verification methods described in items 7aa7 through 7dd72 and 7,,ii7 notifies the ,secretary that the identity of the applicant has been verified2 and 7ii7 maintains a record of such identity verification4 4 7#b7 ,guidelines on institutional verification procedures ,not later than ,october #a1 #bjbf1 the ,secretary of ,education shall establish guidelines with respect to identity verification procedures to be carried out by institutions of higher education under subparagraph 7,b7 of section #dhg7;a77#ae7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7;a77#ae771 as amended by paragraph 7#a74 #c4 ,program review priority category ,section #dih;,a7a77#b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajii;c-#a7;a77#b77 is amended-- 7#a7 in subparagraph 7,e71 by striking and at the end2 7#b7 by redesignating subparagraph 7,f7 as subparagraph 7,g72 and 7#c7 by inserting after subparagraph 7,e7 the following3 7,f7 institutions that have demonstrated a pattern of disbursing1 on or after ,october #a1 #bjbf1 ,federal financial aid under this title for an award year to students with an application under section #dhc for such award year that presented a reasonable suspicion of identity fraud under section #dhc7;e71 except that the ,secretary shall exclude any institution that demonstrates to the ,secretary that the institution is in compliance with the requirements of section #dhg7;a77#ae77;,b72 and 4 ,passed the ,house of ,representatives ,june #aj1 #bjbf4;,clerk4