FSA announced that it will resume flagging FAFSA applicants for potentially fraudulent activity on both the the 2024-25 and 2025-26 forms, which will require that schools complete V4 or V5 verification prior to disbursing any Title IV aid. If an institution suspects fraudulent activity, they are required to report it to the Office of the Inspector General (OIG) using the encrypted portal, and should expect additional ISIRs for other types of flagged activity in Spring 2025.
Below are the most important details from today’s announcement:
Key Developments
- The Department of Education has resumed flagging applicants for potentially fraudulent activity on the 2024-25 and 2025-26 FAFSA forms
- Institutions will receive new ISIRs if an application is flagged, requiring either V4 or V5 verification
- Tile IV aid cannot be disbursed to flagged students until verification process is complete.
- If the verification process is not completed, students will be held liable for any disbursed funds, since their eligibility could not be determined
Next Steps
- Institutions must report any suspected fraud to the Office of the Inspector General
- Fraud rings should be reported to the OIG through the encrypted portal
- In Spring 2025, schools will have to verify ISIRs that are flagged for other issues, such as identity theft or drug-related offenses
- Manual or Batch reporting of v4/V5/ verification results will be delayed until the 2026-27 FAFSA application is released.
Contact Information
- OIG Contact Information
- Address: OIG Headquarters, U.S. Department of Education, 400 Maryland Avenue, SW, Washington, DC 20202-1500
- Web: oig.ed.gov/contact-us
- Hotline: oig.ed.gov/oig-hotline
- Phone: 1-800-MIS-USED (1-800-647-8733)
- School Participation Division Contact Information
- If you are unsure if a compliance concern should be reported to the OIG or if they have specific questions regarding the proper administration of Title IV programs, please contact your regional School Participation Division for guidance.