California community colleges lose millions to financial aid fraud
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(California News Service) State data first reported by EdSource show that fraudsters have stolen more than $7.5 million in student financial aid from California community colleges so far this year.
The theft amounts to less than one-tenth of 1 percent of student aid awarded in the Golden State.
Victor DeVore, dean of student services with the San Diego Community College District, said they use technology to flag suspicious applicants, and require them to submit proof of identity and residency, but it's still a game of cat and mouse.
"Last year, we had about 10,000 fraudulent applications that we blocked," said DeVore. "But even with that, every time we have some kind of metric or filter, the fraudsters are able to get through that."
The California Community College Chancellor's office says about 25 percent of applications are flagged as suspected fraud, up from 20 percent two years ago - as both fraud and its detection get more sophisticated.
The problem got worse during COVID as so many classes went online, making it difficult to require students to get financial aid checks in person.
The financial fraud means less money goes to students in need.
But Nicole Albo-Lopez, vice chancellor of educational programs and institutional effectiveness with the Los Angeles Community College District, said the enrollment fraud that goes with it has real consequences.
"The biggest frustration is when our classes are being filled by individuals that have no intention of actually attending the class," said Albo-Lopez, "keeping students from completing their educational goals within a preferred time frame, because they'll have to wait a semester or two to be able to take that class."
Many schools now require students to meet via zoom with staff trained to detect fraud - and they drop students who haven't verified their identity a few weeks before classes start.
Support for this reporting was provided by Lumina Foundation.