The U.S. Department of Education plans to implement stricter financial aid eligibility checks beginning in fall 2025, targeting fraud linked to 'ghost students.' This comes as artificial intelligence bots have increasingly mimicked real students to illegally access funds. While aimed at protecting the integrity of federal aid programs, these new processes could create additional barriers for legitimate students, particularly in community colleges. Experts warn that complicated verifications may dissuade students from completing their applications or even enrolling due to affordability issues, highlighting the need for a balance between fraud prevention and accessibility.
The verification process, because it is burdensome, actually causes them to not follow up and not ultimately enroll in school, or worse: enroll in school without financial aid.
The rate of fraud through stolen identities has reached a level that imperils the federal student aid programs.
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