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$1 billion in federal student aid is lost yearly to "ghost student" fraud, mainly in California due to weak enrollment checks.
The U.S. Department of Education estimates $1 billion in federal student aid is stolen annually through "ghost student" fraud, where fake or nonexistent individuals are enrolled to receive funds.
The scam is widespread in California, where easy community college enrollment and minimal in-person requirements create vulnerabilities.
Experts say years of lax oversight have allowed the fraud to persist, costing California hundreds of millions in lost funds, though state officials downplay the scale.
Federal investigators are probing multiple institutions, highlighting systemic flaws in verification and oversight.
Reforms are being considered to strengthen identity checks and protect aid intended for real students.
Mil millones de dólares en ayuda federal para estudiantes se pierden anualmente por el fraude de "estudiantes fantasmas", principalmente en California debido a controles de inscripción débiles.