Trump Administration Suspends 870,000 Borrowers Over COVID-Era Loan Fraud

2 articles · Updated · Fox News · Oct 2

More than 870,000 borrowers tied to alleged COVID-era federal loan fraud have been barred from future federal loan programs, with officials warning some cases could lead to prosecution.
The crackdown centers on "ghost students" — fake or stolen identities used to enroll in college and collect federal aid — which officials say spread after Biden-era FAFSA checks required fewer than 1% of applicants to verify identity.
June safeguards now force high-risk applicants to show government-issued ID through the FAFSA system, a step the Education Department says has already saved nearly $200 million and could save more than $1 billion this cycle.
The scale of the fraud had already surfaced last year, when the department said it blocked more than $1 billion in fraudulent aid and found nearly $90 million already disbursed, including over $30 million to deceased people.