H.R. 7891 — Student Aid Fraud Oversight and Accountability Act of 2026

This section adds to the Higher Education Act (HEA) program review priority categories (i.e., risk-based targeting of institutions of higher education (IHEs) for audits and oversight of federal student aid administration) any IHE that disburses federal financial aid on or after October 1, 2026, to a student whose aid application under HEA §483 shows reasonable suspicion of identity fraud as detected by the Department of Education's system—excluding IHEs that, prior to disbursement, verify the student's identity via in-person or live synchronous audiovisual methods, notify the Secretary, and maintain records of such verification. Such identification may inform program reviews, audits, investigations, and other oversight but does not by itself constitute a determination that the IHE has failed to comply with HEA requirements.