Summary
A new wave of scams is occurring as the Free Application for Federal Student Aid (FAFSA) opens, with criminals creating fake students to collect financial aid. These scams have significantly impacted educational institutions, particularly in California, where millions in aid have been lost.
Key Facts
- FAFSA applications opened on October 1.
- Scammers are using fake identities to create "ghost students."
- California colleges have reported over $13 million in aid lost due to these scams in the past year.
- AI technology helps criminals create fake student enrollments.
- Both living and deceased individuals' identities can be used in these scams.
- Victims may only learn their identity was used when denied aid or contacted about loans.
- Financial experts advise monitoring credit reports to catch unauthorized use.
- "Ghost students" take up college class spaces, affecting real students' opportunities.
