by Sharelle B. McNair
February 11, 2026
The U.S. Division of Training’s Workplace of Inspector Basic has greater than 200 investigations open throughout the nation as some schemes are suspected of stealing over a billion {dollars}.
Faculty college students, there’s a brand new group of scammers known as “ghost college students” who’re creating pretend identities or stealing others to enroll in faculties and universities and taking off with tens of millions in monetary assist help, ABC Information studies.
Following the COVID-19 pandemic, scammers took benefit of distant studying settings inside increased studying and leveraged A.I. to extend their ways in id theft, focusing on monetary assist and Pell grants. Synthetic intelligence allowed them to broaden their attain and circumvent id verification controls. Nearly in a single day, the rip-off grew.
“Ghost college students” received the identify as as soon as they obtain the funds, the scammers disappear, robbing deserving college students of the chance for an training and stealing a whole lot of tens of millions of {dollars} from the federal authorities.
Jason Williams, the assistant inspector normal for investigations for the U.S. Division of Training’s Workplace of Inspector Basic, known as it “an enormous problem” however nothing new. “As they’re stealing identities … these loans will not be being repaid. They’re being assigned to folks [who] don’t even know they’ve a debt with the U.S. Division of Training … [until] the Inside Income Service says you owe the Division of Training cash,” Williams stated, pushing that fraudsters have made makes an attempt to steal scholar monetary assist for many years.
“However when the pandemic [hit], everyone went to on-line studying. Effectively, by doing that, it actually did open the door.”
His workplace has greater than 200 investigations open throughout the nation, as some schemes are suspected of stealing over a billion {dollars}.
In line with AL.com, group faculties in California, Michigan, Minnesota, Oregon, and New Jersey are key targets. One highschool scholar was excited to proceed his training and utilized for scholar loans, however was labeled as ineligible. Shortly after, the scholar realized his id was stolen and used to use for a number of colleges.
Whereas the “ghost” scammers from abroad will be difficult to detect, a majority come from inside the U.S. A father and son scammer duo from Arizona took greater than $7 million, however after authorities caught up with them in 2018 and 2019, each pleaded responsible and served 12 months. One other man from Maryland stole the identities of 60 folks, stealing over $6.7 million in monetary assist, leading to him serving 4 years in jail.
Nonetheless, the federal authorities is working with sure software program to guard college students and cease the scammers.
Former NFL linebacker Maurice Simpkins owns considered one of software program firms. Scholar Software Fraudulent Examination, also referred to as S.A.F.E. works as a firewall or “an offensive line” for the colleges, catching roughly 95% of pretend purposes. Arapahoe Neighborhood Faculty in Colorado and 100 extra colleges work with S.A.F.E. as shoppers.
Up to now, Simpkins says one of many worst situations got here when a college recognized that just about one-third of the enrolled college students have been frauds.
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