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Ed Department: Nearly 2,000 Minnesota ‘Ghost Students’ Fraudulently Received $12.5 Million
The Federalist ^ | December 16, 2025 | Breccan F. Thies

Posted on 12/17/2025 4:41:27 AM PST by Red Badger

In Minnesota, home to the largest population of Somali immigrants in the U.S. and the site of numerous fraud investigations, fraudsters received $12.5 million in student loan and education grant money, according to a letter Education Secretary Linda McMahon sent to Minnesota Gov. Tim Walz.

The letter calls on Walz to resign, and states that a new fraud prevention system at the department has found over $1 billion in “attempted financial aid theft,” including by international fraud rings and artificial intelligence (AI) bots.

“[Y]our careless lack of oversight and abuse of the welfare system has attracted fraudsters from around the world, especially from Somalia, to establish a beachhead of criminality in our country,” McMahon wrote. “As President Trump put it, you have turned Minnesota into a ‘fraudulent hub of money laundering activity.'”

“At the beginning of this year, the U.S. Department of Education became aware that fraudulent college applicants, especially concentrated in Minnesota, were gaming the federal postsecondary education system to collect money that was intended for young Americans to help them afford college,” she said.

McMahon referred to the fraudsters as “‘ghost students’ because they were not ID-verified and often did not live in the United States, or they simply did not exist,” and noted that, “[i]n Minnesota, 1,834 ghost students were found to have received 12.5 million in taxpayer-funded grants and loans.”

They “collected checks from the federal government, shared a small portion of the money with the college, and pocketed the rest–without attending the college at all,” according to the letter.

The letter comes after Somalis in Minnesota, in particular, have been exposed as having massively defrauded American taxpayers. They have even reportedly funded terrorists back in their country.

The news surrounding Somali fraud includes allegations of multiple scams, including claims that an autism “provider” enrolled Somali children who did not have an autism diagnosis in a welfare fraud scheme.

The outrage, among many other cultural problems with Somalis, has resulted in President Donald Trump intending to cancel some Somalis’ temporary protected status.

Trump recently pointed out that Somalis “contribute nothing” to American society. “I don’t want them in our country. I’ll be honest with you,” he said, noting Somalia is “barely a country” where “they just run around killing each other.”

While it should be utterly shocking to every American that government systems apparently don’t have basic safeguards to make sure that fraud like this is impossible, it is unsurprising that a culture defined by scam artists is finding every way to cash out. Just look at Rep. Ilhan Omar, D-Minn., who allegedly married her brother (which would likely constitute marriage, immigration, and tax fraud) in order to enter the United States.

“Scammers have gotten rich off federal housing, education, food stamp, and small business programs–even defrauding assistance for elder care and autistic children,” McMahon said in Tuesday’s letter. “Joining these criminals in their schemes have been Minnesota politicians who benefit–both in votes and donations–from fraudsters’ support. Like the radical Islamic terror groups overseas who receive Minnesota money to kill American servicemembers, Minnesota’s political elite has turned a blind eye and even helped facilitate the laundering of money that was meant to help America’s least fortunate.”

In June, the Department of Education announced a “nationwide effort to eliminate identity theft and fraud in the federal student aid programs for the fall 2025 semester,” and a requirement for institutions of higher education to verify “certain first-time applicants who are enrolled in the summer term,” as an immediate effort to combat fraud.

“Federal Student Aid (FSA) data indicates that the rate of fraud through stolen identities, particularly involving technologically advanced fraud rings, has reached a level that imperils the federal student assistance programs,” the department stated at the time.

Another obvious safeguard, also announced by the Education Department in June, required first-time student aid applicants to “present, either in person or on a live video conference, an unexpired, valid, government-issued photo identification to an institutionally authorized individual and the institution must preserve a copy of this documentation.”

As the department has noted, the Biden administration removed verification capabilities for student loans and “diverted resources from fraud prevention toward its illegal loan forgiveness efforts,” opening the door for massive fraud.

****************************************************************

Breccan F. Thies is the White House correspondent for The Federalist. He previously covered education and culture issues for the Washington Examiner and Breitbart News. He holds a degree from the University of Virginia and is a 2022 Claremont Institute Publius Fellow. You can follow him on X: @BreccanFThies. Department of Education Donald Trump


TOPICS: Conspiracy; Education; Government; Society
KEYWORDS: crime; education; fraud; minnesota
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1 posted on 12/17/2025 4:41:27 AM PST by Red Badger
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To: Red Badger

Democrats doing what Democrats do. Nothing to see here, move along.


2 posted on 12/17/2025 4:45:10 AM PST by Russ (I )
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To: Red Badger

Wake me when someone is perp-walked


3 posted on 12/17/2025 4:46:06 AM PST by devane617 (Discipline Is Reliable, Motivation Is Fleeting..)
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To: Red Badger
and pocketed the rest–without attending the college at all,”

How is that any different from college football?

4 posted on 12/17/2025 4:49:51 AM PST by Hot Tabasco
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To: Red Badger

Tip of the iceberg.


5 posted on 12/17/2025 4:51:48 AM PST by Rlsau1
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To: Red Badger

Damn, the one time I thought an article was from the Babylon Bee without looking at the heading. The only way we should ever accept Puerto Rico, the Caribbean Garbage landfill is if Somalisota withdraws from the United States.


6 posted on 12/17/2025 4:52:25 AM PST by FlingWingFlyer (Freedom isn' FREE. Neither is Socialism. Somebody has to pick up the tab for the freeloaders.)
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To: Hot Tabasco

At least the football players show up on Saturday’s games.........


7 posted on 12/17/2025 4:54:39 AM PST by Red Badger (Iryna Zarutska, May 22, 2002 Kyiv, Ukraine – August 22, 2025 Charlotte, North Carolina Say her name)
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To: Red Badger

McMahon needs to “claw” this 12.5 million taxpayer dollars from Walz’s jock strap and his Sammie’s boxes of race card coupons.


8 posted on 12/17/2025 4:55:42 AM PST by FlingWingFlyer (Freedom isn' FREE. Neither is Socialism. Somebody has to pick up the tab for the freeloaders.)
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To: Red Badger

My bet is a lot of districts nationwide are doing this, and not just the major metros.

Every district in the country needs to be audited.


9 posted on 12/17/2025 4:56:18 AM PST by mewzilla (Swing away, Mr. President, swing away! 🇺🇸 🏴󠁧󠁢󠁥󠁮󠁧󠁿 )
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To: Red Badger

everyone involved should be (and should have been)
fired, tried, jailed, with loss of their pensions and homes.


10 posted on 12/17/2025 4:58:00 AM PST by Diogenesis (Si vis pacem, para bellum)
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To: mewzilla

BRAVE AI:

As of 2022, there are 3,144 counties and county-equivalents in the 50 states and the District of Columbia. When including the 100 county equivalents in the U.S. territories, the total number of counties and county-equivalents in the United States is 3,244.


11 posted on 12/17/2025 4:58:28 AM PST by Red Badger (Iryna Zarutska, May 22, 2002 Kyiv, Ukraine – August 22, 2025 Charlotte, North Carolina Say her name)
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To: Red Badger

So are these “ghost students” also voting in Governor Topper’s Minnesota?


12 posted on 12/17/2025 5:00:53 AM PST by Bernard ("Nothing is as expensive as that which the government provides for free." - Ronald Reagan)
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To: mewzilla

From 2022 and Baltimordor...

https://foxbaltimore.com/news/project-baltimore/failure-factory-project-baltimore-investigates-ghost-students

From 2020 and Indiana...

https://www.chalkbeat.org/indiana/2020/2/26/21178644/how-the-state-missed-thousands-of-ghost-students-at-two-indiana-virtual-schools/

2010 and Indiana...

https://www.ibj.com/articles/22642-ghost-students-cost-indiana-94-million-in-2009

2014 and Chicago...

https://blackyouthproject.com/report-chicago-public-school-administrators-faked-data-to-pad-school-enrollment-gain-additional-resources/

And not just students, union reps masquerading as teachers...

https://www.foxnews.com/us/pennsylvania-school-district-hit-with-ghost-teacher-lawsuit


13 posted on 12/17/2025 5:07:58 AM PST by mewzilla (Swing away, Mr. President, swing away! 🇺🇸 🏴󠁧󠁢󠁥󠁮󠁧󠁿 )
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To: Hot Tabasco

College football is funded mostly with gate and TV rights receipts, not taxpayer funding.


14 posted on 12/17/2025 5:07:59 AM PST by FreedomPoster (Islam delenda est)
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To: Red Badger

15 posted on 12/17/2025 5:08:23 AM PST by FreedomPoster (Islam delenda est)
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To: Red Badger
“[Y]our careless lack of oversight and abuse of the welfare system has attracted fraudsters from around the world, especially from Somalia, to establish a beachhead of criminality in our country,”

Carelessness or design?

I would put my money or design.

Tampon Tim is as crooked as 50 miles of West Virginia highway.

16 posted on 12/17/2025 5:09:08 AM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: Red Badger

Here is my assessment on MN having grown up there.
Since the 60’s, it has been pretty much one party rule.
There was a brief move right during Reagan but they were eventually kicked out by the Minneapolis university machine.
Over the decades, the DFL experimented to see how far they could go.
Since no one complained or bothered to investigate, they began their march into full on Socialism.

Obama began the real change as many of his minions from Chicago began gaining power in MN.
It all became about $$$$$ and if you wanted money, there was a group that would make sure you got LOTS.

Minnesotans who never figured they would amount to anything had huge amounts of cash dropped in their laps.
I know this for sure as I saw it happen to family members.

Now the lights are on MN and they can’t hide.
All they can do is block and evade but as history shows us, the DNC is REALLY good at “block and evade”

The national GOP needs to stop playing with Epstein, Rand, and surprisingly “Crossfire Hurricane” (block and evade has won) and concentrate on MN and the corruption.


17 posted on 12/17/2025 5:52:29 AM PST by Zathras
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To: Red Badger

But President Trump had a mean tweet. We should be looking at that and not the massive fraud allowed by a tarded governor. /sarc


18 posted on 12/17/2025 5:52:41 AM PST by Dan Zachary
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To: Zathras

It’s also happening in Ohio and Maine, both of which have sizeable Somali communities..............


19 posted on 12/17/2025 5:54:23 AM PST by Red Badger (Iryna Zarutska, May 22, 2002 Kyiv, Ukraine – August 22, 2025 Charlotte, North Carolina Say her name)
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To: Red Badger

And just as fraudulent is the Minnesota news media who is downplaying this scandal, defending the policitians, and even endorsing Walz for re-election!


20 posted on 12/17/2025 5:55:32 AM PST by MNnice
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