Fake student aid: California colleges detect more fraudsters stealing millions

CalMatters ^ | 4/9/25 | Adam Echelman

[CFW]

For years, scammers have targeted community colleges across the state, posing as students in order to steal money from scholarships or government financial aid.

Recent state reports suggest the problem is getting worse, and college leaders say they’re worried that the Trump administration’s cuts to the U.S. Department of Education could hamper fraud prevention and investigations.

In 2021, the California Community Colleges Chancellor’s Office reported that about 20% of college applicants were likely fake. In January 2024, the state said it was up to about 25%.

Now it’s around 34%, according to the most recent data from the last calendar year. “Those are all the ones that are stopped,” said John Hetts, executive vice chancellor for the data team at the chancellor’s office.

[CFW]

Just how many ways is there for fraudsters to steal our money? Apparently, a lot. And, governments do little to stop the fraud except create committees to do studies.

I suspect we now know of one reason for the fake SSN numbers. The media screams "No one is getting monthly SS from those numbers". Maybe so. Maybe not. But there is a lot more fraudulent ways to use SS numbers than for just monthly retirement checks. Student loan aid is just one.

Here is the FR thread from 2021 on the subject. In the past 4 years, nothing has been done about the issue and the fraudulent student aid has only increased.

"Thousands of ‘fake students’ enrolled in California community colleges seeking financial aid"

Fake student aid

[Carry_Okie]

...and college leaders say they’re worried that the Trump administration’s cuts to the U.S. Department of Education could hamper fraud prevention and investigations.

The fraudsters wouldn't have attempted it if it wasn't easy, with little chance of getting caught, and even less chance of penalty.

[crusty old prospector]

Anonymity on the interweb. The one year I got a loan, I had to show up in person at the bursar’s office. $2,500. I paid it back at $50 a month for years. I had writer’s cramp.

[The_Media_never_lie]

I don’t feel good about sending my taxes to a government so careless with my money.

[blackdog]

It’s not theft. It’s merely redirection of amounts allocated for similar purposes. One has to think and speak like a leftist grifter.

[PubliusMM]

“Recent state reports suggest the problem is getting worse, and college leaders say they’re worried that the Trump administration’s cuts to the U.S. Department of Education could hamper fraud prevention and investigations.”

Or, just maybe, you a$$holes could review your ‘spending’ and channel some of those millions from DEI bull$hit and questionable “research” to fraud investigation?

Just sayin’...

[SMARTY]

It fels just like getting mugged

[CoastWatcher]

.
So, in summary; eliminating the Dept. of Ed. will hinder the elimination of fraud in the system that was unknown until the Dept. of Ed. being eliminated.