This bill requires the U.S. Department of Education to screen all applications for the Free Application for Federal Student Aid (FAFSA) for identity fraud starting October 1, 2026. Flagged applicants and their colleges must be notified, and extra identity verification is required before federal aid is given. Colleges must keep verification records, follow federal guidelines, and report to the Department. The Secretary must provide annual reports to Congress and alert them to major system changes. Schools repeatedly giving aid to flagged students will face review unless they comply with requirements.