The federal student aid system was apparently a feeding trough for fraudsters and according to President Trump’s Education Secretary Linda McMahon, some of the “students” cashing in weren’t even alive.
In a jaw-dropping interview on Fox News, McMahon revealed that the Department of Education uncovered widespread abuse in the federal student aid application system, including bot-driven applications, so-called “ghost students,” and even dead individuals allegedly receiving federal student aid.
Secretary McMahon laid it all out: the Trump administration has completely revamped the FAFSA program with ironclad real-time identity verification and they’re already saving taxpayers billions.
According to the Department of Education website:
The U.S. Department of Education (the Department) launched a new, real-time fraud detection capability for the Free Application for Federal Student Aid (FAFSA®) form, marking the largest and most comprehensive, nationwide fraud prevention effort in the agency’s history.
Effective immediately, 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 also recently began conducting a one-time review of all previously submitted 2026-27 FAFSA forms using the new screening technology, ensuring that all federal student aid program dollars are supporting students and families, not fraudsters. The Department estimates that its efforts to identify and deny federal student aid to fraudulent students will save taxpayers over $1 billion during this year’s FAFSA cycle.
Hellbound and Down 