Experts warn of ‘ghost student’ scams saddling Americans with ‘phantom’ student debt — what to do if you’re targeted

Core Insights - A new scam targeting student financial aid is emerging, involving "ghost students" who exploit the system using AI-generated identities [1][2] - Organized networks are leveraging AI to create synthetic identities for fraudulent college enrollments, leading to significant financial losses [2] Financial Impact - California colleges reported 1.2 million fraudulent applications in 2024, resulting in 223,000 suspected fake enrollments and a loss of $11.1 million in financial aid [3] - The College of Southern Nevada experienced a loss of $7.4 million due to fraudulent enrollments during the fall 2024 semester [4] Broader Consequences - The presence of ghost students diverts financial aid from legitimate students, impacting their ability to fund education [5] - Fraudulent enrollments can lead to waitlists for genuine students and create discrepancies in class attendance, affecting professors' teaching environments [5]