Department of Education Guidance for Fighting Pell Fraud

by | Feb 27, 2025 | Policy

On February 24th, the Department of Education released detailed guidance on combating Pell fraud. Guidance and updates included:

  • Enhanced identity verification processes being implemented by Federal Student Aid
  • Critical reminder of institutional requirements for detecting and reporting fraud
  • The Department’s comprehensive fraud prevention strategy

As institutions continue to face sophisticated fraud schemes targeting Title IV aid, the Department emphasizes that schools must:

  • Report suspected fraud to their School Participation Division
  • File Suspicious Activity Reports (SARs) with FinCEN when appropriate
  • Implement robust monitoring procedures for distance education programs

The Presidents Forum remains committed to eliminating Pell fraud and is always looking for opportunities to increase efficiency, transparency, and accountability in higher education.

You can read the entire announcement at https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2025-02-24/update-identity-verification-and-reminder-institutional-requirements-reporting-fraud.