FAFSA Fraud Prevention: How Tranowicz Notary Services Helps Colleges Stay Compliant

Tiana Tranowicz
Sep 8
3 min read

Beginning with the 2025–26 award year

Fraud in federal student aid programs has reached a tipping point. The U.S. Department of Education is sounding the alarm about fraud rings exploiting the Free Application for Federal Student Aid (FAFSA) at a scale that threatens both taxpayers and legitimate students.

In California, one community college system reported that 34% of its FAFSA applications were fraudulent. In Nevada, another institution wrote off $7.4 million in financial aid tied to fake enrollments.

As U.S. Secretary of Education Linda McMahon said:

“When rampant fraud is taking aid away from eligible students, disrupting the operations of colleges, and ripping off taxpayers, we have a responsibility to act.”

What’s Changing in FAFSA Verification for 2025

Beginning with the 2025–26 FAFSA award year, stricter identity verification rules will apply:

Every FAFSA is screened through the FAFSA Processing System.
Applications flagged for risk are sorted into verification groups (V1, V4, or V5).
Groups V4 and V5 require verified proof of identity before aid can be disbursed.

Previously, this meant in-person verification checks that slowed processing. Now, schools can use new federally approved options:

NIST IAL2 Verification

Third-party services can perform NIST IAL2-compliant identity checks, ensuring security and compliance.

Secure Video Verification

Colleges can verify students through live, supervised video calls, where IDs are captured and securely stored with session metadata.

With over 6.4 million FAFSA applications expected to require verification each year, these new requirements will stretch financial aid offices thin.

Where Tranowicz Notary Services Comes In

At Tranowicz Notary Services (TNS), we’ve completed over 15,000 secure closings and identity verifications nationwide. Our experience in remote online notarization (RON) makes us the perfect partner for colleges and universities navigating these new rules.

Here’s how we can help:

🔹 Nationwide Remote Online Notarization (RON)

Legally recognized across the U.S.
Secure, MISMO-compliant identity verification.
Accepted for Title IV compliance requirements.

🔹 Video Identity Verification Services

Live video ID checks with government-issued identification.
Tamper-evident documentation and secure storage.
Scalable solutions for institutions managing high application volumes.

🔹 Compliance & Audit Support

Detailed audit trails for every verification session.
Documentation that meets Department of Education standards.
Protects your school’s reputation while keeping aid flowing to legitimate students.

By outsourcing FAFSA identity verification to TNS, your staff saves time, reduces administrative strain, and ensures that compliance requirements are met without adding bottlenecks.

Why Schools Should Act Now

Fraud prevention is no longer a side task, it’s a compliance mandate and a student success issue. Partnering with Tranowicz Notary Services allows colleges to:

Protect financial aid funds from fraud.
Ensure smooth processing for eligible students.
Reduce backlogs in financial aid offices.
Stay compliant with the 2025–26 federal FAFSA verification rules.

Final Takeaway

The Department of Education has acted decisively: FAFSA identity verification is now mandatory and mission-critical. Institutions need a reliable partner who understands both fraud prevention and compliance requirements.

With Tranowicz Notary Services, colleges and universities gain access to:

Certified remote notarization solutions.
Secure video verification processes.
A trusted team with proven experience in high-volume identity verification.

We help you protect aid, safeguard your reputation, and deliver a better student experience — all while staying 100% compliant with federal guidelines.

📩 Get Started Today

Contact Tranowicz Notary Services at tnssinging@gmail.com or 912-480-7777 to learn how we can support your financial aid office with secure, compliant FAFSA identity verification, prevent fraud, and deliver a smoother experience for students.