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flag A surge in fake student identities is costing U.S. taxpayers over $1 billion in fraudulent federal student aid.

flag A growing "ghost student" scam is using stolen or fake identities to fraudulently obtain federal student loans and aid, primarily targeting community colleges with open enrollment. flag Scammers exploit online learning and AI to create fake applications, often leaving victims unaware until the IRS demands repayment. flag The U.S. Department of Education’s Office of Inspector General has investigated over $350 million in fraud, with more than 200 active cases and potential losses exceeding $1 billion. flag In California, nearly a third of community college applicants in 2024 were flagged as fraudulent, and schools like Delaware County Community College identified over 500 fake enrollments. flag Institutions are adopting identity verification tools like S.A.F.E. flag to combat the issue, but many lack resources to keep pace with evolving fraud tactics.

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