,,ii  #aaith ,,congress  #b;d ,session  
,s4 #ddbh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #bi1    
#bjbf,mrs4 ,moody 7for herself1 ,ms4    
,hassan1 and ,mr4 ,tuberville7          
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,health1 ,education1      
,labor1 and ,pensions  ,a ,,bill  ,to   
amend the ,higher ,education ,act of    
#aife to require the use of an identity 
fraud detection system in reviewing     
,free ,applications for ,federal        
,student ,aid4  #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 to or in conjunction with other
 verification processes carried out     

under this title1 the ,secretary shall  
use an identity fraud detection system  
to review each application submitted    
under this section on or after ,october 
#a1 #bjbf1 to determine whether the     
application presents a reasonable       
suspicion of identity fraud4 ,if the    
,secretary determines that such an      
application presents a reasonable       
suspicion of identity fraud1 the        
,secretary shall 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 determination and the basis
 for 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#ae72  
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        
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  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 whose  
application under section #dhc presents 

a reasonable suspicion of identity fraud
 under section #dhc7;e71 unless the     
institution1 in accordance with         
procedures established by the           
,secretary-- 7i7 determines that a      
reasonable suspicion of identity fraud  
is not present by confirming the        
identity of such applicant using        
in-person verification or live1         
synchronous audiovisual verification2   
7ii7 notifies the ,secretary that the   
identity of the applicant has been      
verified2 and  7iii7 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