AI-Powered Student Loan Fraud Explodes: Colleges and Students Targeted
2025-06-15
The rise of AI and online classes has fueled a surge in student loan fraud. Criminal rings are deploying AI chatbots as "ghost students," enrolling in online courses and collecting financial aid. California colleges reported 1.2 million fraudulent applications in 2024, resulting in 223,000 suspected fake enrollments and at least $11.1 million in losses. Victims face not only significant debt but also potential inability to enroll in needed courses due to bots filling class rosters. The US Department of Education has implemented temporary measures requiring government-issued ID, but more robust long-term solutions are under development.
Tech
student loans