California Tops List of States With Highest Student Aid Fraud at $171 Million
About this episode
The episode discusses the significant student aid fraud in California and the Department of Education's efforts to combat it, saving taxpayers over $1 billion.
The Big Number: $1 billion — that’s how much the Department of Education says it saved taxpayers by cracking down on student aid fraud over the past year. Why It Matters: The Department of Education announced that its identity verification requirements for first-time FAFSA applicants, launched in summer 2025, have blocked more than $1 billion in fraudulent federal student aid . The fraud prevention push came after colleges and universities across the country reported being targeted by sophisticated fraud rings that exploited weakened safeguards during the Covid-19 pandemic. That created openings for criminals to file fake FAFSA applications and siphon Pell Grants and federal student loans meant for legitimate students and families.
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