“Even if you need to be there physically, you can manufacture a fake driver’s license and send one of your mules to sit in class and collect the money.”
Scams targeting Pell Grants and federal student loans have surged as lawmakers pour more money into higher education to shore up flagging enrollment.
“We have government leaders saying we need to make it easier for people to get this money, but they’re taking away the very tools that protect you when they do that,” Mr. Talcove told The Times. “Here you have large sums of money and an antiquated system. Criminals are like moths to the light. The Education Department inspector general’s office said it is investigating 48 student aid fraud rings nationwide.
Fraud investigators said gangs of five to 10 criminals plan most college aid scams on social media channels such as Telegram and WhatsApp. Gang members include “mules” in their 20s, who steal driver’s licenses and pose as college students, and bosses ages 35 to 50, who mastermind the capers. Months later, the identity theft victims get notices about owing money on college loans they never received. Those who apply for Pell Grants discover that the government thinks they already have the funding, leaving them rejected for the aid.
Georgia State University criminologist David Maimon said most college aid scammers target institutions in California, Florida, New York, Illinois and Pennsylvania. These states traditionally have high rates of organized crime.
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