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flag $1 billion in federal student aid is lost yearly to "ghost student" fraud, mainly in California due to weak enrollment checks.

flag 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. flag The scam is widespread in California, where easy community college enrollment and minimal in-person requirements create vulnerabilities. flag 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. flag Federal investigators are probing multiple institutions, highlighting systemic flaws in verification and oversight. flag Reforms are being considered to strengthen identity checks and protect aid intended for real students.

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