Protecting your identity and personal information is critical always, and that includes when applying for financial aid. The Scholarship Foundation has issued the following alert and encourages all students and their families to review these important steps and practices to protect against misuse of personal information. In addition, please know that Student Advisors are available to assist with any specific concerns, including questions about Federal Student Aid’s protections around data and privacy.
According to Federal Student Aid (FSA), levels of fraud* have increased significantly as individuals’ identities are used to falsely apply for financial aid. In response, Federal Student Aid has indicated that additional identity verification processes will begin in the fall of 2025.
Navigating the financial aid process can already be challenging for some students. The Scholarship Foundation aims to ensure students have the information to protect themselves and understand what to do if they find they have been the victim of identity theft or financial aid fraud. In addition, the Foundation wants students to understand why, and how, to complete any verification requirements expected by FSA, including requirements to validate their identity.
Information for All
All who have or create a Federal Student Aid ID, which is the username and password necessary to access Federal Student Aid’s website and apply for aid, are expected to complete specific steps to verify their identity. These can include:
- Identity verification by the Social Security Administration
- Completion of knowledge-based identity verification questions
- Submitting additional documents to the college through the verification process
Specific details regarding FSA’s new identity verification processes have not been released, The Scholarship Foundation recommends checking back this fall for more information.
All individuals can follow basic protocols to protect themselves:
- Protect your personal information, especially your Social Security Number.
- Strengthen your password practices. This includes:
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- Make them long; the longer they are, the stronger they are.
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- Make them random; this could include a random string of mixed-case letters and numbers or create a memorable passphrase with unrelated words.
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- Make them unique; use a different password for each account.
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- Store them safely; use a password manager to help keep them safe and secure.
- Use an authenticator app. All users will be required to set up two-factor authentication on their accounts, and an authenticator app is the most secure.
Information for Individuals Creating Accounts
For those students and parent contributors who have never created a Federal Student Aid ID, or StudentAid.gov account, which consists of a username and password, it is important follow these steps when creating one:
- Create your own account. Everyone should create their own ID, answer their individual challenge questions, and connect their ID to their personal phone number and email address.
- Keep things safe. Store your username and password, challenge questions and answers, and the back-up code safely. As recommended already, consider a password manager.
Information for Individuals with Existing Accounts
Students and parent contributors who already have a Federal Student Aid ID, or StudentAid.gov account, are encouraged to do the following:
- Review and update. When you log into your account, review the contact information carefully to be sure everything is correct and up to date.
- Monitor your account. Review your financial aid disbursements, both Pell Grants and student loans, on your Aid Dashboard, to ensure that all aid reflected is accurate. Check regularly.
What should you do if you suspect fraud or identity theft?
If you discover fraudulent activity on your Federal Student Aid account or determine someone has created an account on your behalf, it is essential that you contact Federal Student Aid immediately.
FSA: How do I submit a complaint or report a scam?
FSA: Report Identity Theft or Fraud
The Scholarship Foundation Student Advisors are available to assist you. If you are concerned about identity theft or fraudulent activity, need help recovering or protecting your FSA ID, or need support to navigate a complaint process, please reach out to a member of our team.
*This advisory addresses fraud conducted by those unauthorized to access government data. Students with concerns about potential misuse of data by the government should contact their Scholarship Foundation directly for further discussion.
