US DOJ uncovers massive student loan fraud scheme involving stolen identities and AI-generated ‘ghost students’

VIA FOX NEWS ON X:

BREAKING: The DOJ is exposing a major student loan fraud scheme targeting Americans who never attended college, with stolen identities allegedly used to create fake students and obtain taxpayer-funded financial aid.

Assistant Attorney General Colin McDonald says fraudsters are using AI to complete college applications, submit coursework, and even create the appearance of students attending virtual classes, tricking schools into believing real people are enrolled.

“Some even create the appearance of a fake student in an online classroom to trick schools into believing a real person is present… The goal is to keep the ghost student in school for as long as possible.”