The U.S. House has passed legislation aimed at preventing fraud in federal student aid programs by cracking down on so-called “ghost students” who use fake or stolen identities to obtain financial assistance.

The bill, known as the No Aid for Ghost Students Act, would require enhanced identity verification measures for applicants seeking federal student aid. Supporters say the legislation is designed to stop criminals from diverting taxpayer-funded education dollars away from legitimate students.

Education and Workforce Committee Chairman Tim Walberg said fraudsters have stolen billions of dollars from federal student aid programs and that the measure would strengthen oversight and improve accountability.

The legislation, introduced by Burgess Owens, would require front-end identity screening for student aid applications, flag high-risk submissions, and mandate additional verification before aid is distributed. The bill also provides schools with guidance on identity verification procedures and includes provisions to strengthen federal oversight of student aid fraud.

Additional provisions were drawn from separate legislation authored by Glenn Thompson.

Supporters say the bill will help ensure federal student aid funds are directed to eligible students rather than fraudulent applicants.