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CNET
6 days ago
- Business
- CNET
You Have Less Than Two Weeks Left to Submit Your FAFSA for the Current Year. Here's How to Do It
Time is running out if you need help paying for college this year; the Free Application for Federal Student Aid (FAFSA) deadline is June 30. designer491/Getty Images Another school year has come to a close for most of us, but there's still money you can claim to help cover any lingering costs by filling out the 2024-25 FAFSA. Is it even worth submitting the Free Application for Federal Student Aid -- especially for an academic year that's already passed? The answer is yes, you should still submit the FAFSA. You could still be eligible for financial aid that helps cover bills from this current school year. "Even if you're a latecomer, you can still be eligible to receive federal student aid -- including a Federal Pell Grant," the Federal Student Aid website says. But the deadline to apply is June 30, so there's no time to wait. Financial aid has had its own rough year, with the Department of Education has been gutted and borrowers in default being sent to collections. A proposed overhaul of student loans could reduce access to Pell Grants and the total amount a student can borrow. The FAFSA is designed to help students shoulder the cost of college by determining their family's eligibility for financial aid, including Pell Grants, scholarships, work-study programs and student loans. Most experts agree that even with all the turmoil, filling out the FAFSA is still a good idea in most circumstances. Here's what you need to know if you need help paying for the college and want to fill out the FAFSA. Is this year's FAFSA affected by the GOP plan to overhaul financial aid? The Republican proposal for overhauling federal financial aid, the Student Success and Taxpayer Savings Plan, is in its early stages and would need to approved by both Congress and the President before it becomes law. In its current form, many of the rules would affect financial aid awarded on or after July 1, 2026. Among the proposed changes are a maximum limit on how much a student can borrow each year and in total, restrictions on eligibility for Pell Grants and a restructuring of the student loan repayment program. The plan doesn't impact the FAFSA application for the 2024-25 or 2025-26 academic years, but it could potentially affect those who plan to be in college after July 1, 2026, as well as current borrowers enrolled in income-contingent repayment plans. Experts say those who are just applying for their first year of college should start planning now with these potential changes in mind. "Instead of just looking at what's my loan amount this year, what's my out of pocket and so on, they should be looking at the total timeline of the program," said student loan expert Betsy Mayotte, president of the nonprofit Institute of Student Loan Advisors. "This is something people should be doing today." What's changed with the FAFSA in the past few years? The 2024-25 and 2025-26 FAFSA forms are similar, drastically cutting the number of questions and applied a new formula to determine a family's contributions. Delays and glitches caused widespread chaos during the 2024-25 rollout. Although the 2025-26 rollout was smoother, the transition to a new administration has created questions about the FAFSA amid President Trump's call to abolish the Department of Education. If the department's duties are reassigned and another government agency takes over FAFSA processing, experts say any changes to the current year's application process likely would be minor. "There might be changes to things like where to find the FAFSA online," said Elaine Rubin, director of corporate communications for Edvisors. "If it is shifted, we'll have plenty of time to determine how it's going to be managed and processed." 🍎Extra credit Check out the PDF of the 2024-25 FAFSA (for the current school year) and 2025-26 FAFSA (for the upcoming school year) before you start the online application so you know what to expect. Although you can submit a paper application, using the online version is typically faster and easier. How does FAFSA use my info to help me get federal student aid? Based on the answers you provide to questions on the FAFSA, the financial aid office calculates your Student Aid Index. The SAI factors in the incomes and assets of the student and their "contributors" -- parents or spouse -- to determine the expected family contribution toward college costs, which can range from -1,500 up to 99,999. A lower number means there's a higher likelihood you'll receive need-based financial assistance. Schools use the SAI to calculate the amount of financial aid they offer you. Should I fill out the FAFSA? Unless you are prepared to pay for college without any assistance, it's in your best interest to fill out the FAFSA, regardless of your financial status. The federal student aid site notes that multiple factors, including the size of your family and your year in school, are considered in addition to your family's income. "Not filing just screams, 'I can pay full price,'" said Danilo Umali, founder of Game Theory College Planners. Even if you believe your family's income is too high to qualify for need-based aid, filling out the form may still be worth your time. "Some schools require FAFSA to qualify for merit aid through their school," Rubin said. 🍎Extra credit You must fill out the FAFSA each year to apply for financial aid, even if none of your information changed. Concerns about disclosing citizenship While a student must be a US citizen or eligible non-citizen to complete the FAFSA, your parents or spouse may not be. Although the site says your contributor's citizenship or immigration status won't affect your eligibility, there is concern that information submitted on the FAFSA might be shared with other government agencies. Nancy Goodman, founder of the nonprofit organization College Money Matters, said this is a valid fear for college students with undocumented parents. "Under the previous administration, sharing info between government departments was not allowed unless specified and approved," she said. "Under this administration, it continues to be unclear where information sharing is possible and with whom." If your family has concerns about citizenship and wishes to forgo the FAFSA, consider contacting colleges where you're applying to find other options to secure aid. Some may offer alternative applications or other financing options. Also consider private, merit-based scholarships, which may not require information about your parents or spouse. "Citizenship and legal permanent residency is a very complicated topic," Rubin said. "It's going to be a very personal decision on how to proceed." Here's what you need to fill out the FAFSA Before you can fill out the FAFSA, you and your contributors must each create your own FSA ID. You'll need the following: Your legal name Date of birth An email address Social Security number -- contributors who do not have a Social Security number will need to be able to answer questions about themselves to verify their identity If you have a mobile phone number, you can also add it to your account for two-step verification. Note that verifying your Social Security number for your FSA ID may take one to three days. If you plan to submit your FAFSA application by a particular deadline, make sure everyone gets their FSA IDs at least a few days before. 🍎Extra credit Make sure you'll be able to access the email and phone number you provide. If you ever forget your username or password, your email or phone number will be used for account recovery. Filling out the FAFSA: Step-by-step guide Preparation is key when filling out the FAFSA. You'll want to gather relevant financial and legal documents before you start. This will save you time during the application process. There are five sections in the FAFSA form: Student Student's spouse Parent Parent's spouse or partner Preparer (if someone other than the student, student's spouse, parent, or parent's spouse or partner completed this form on the applicant's behalf) The Federal Student Aid office recommends that students log in to to fill out their portion of the FAFSA first, then invite your contributors. You can pause the application at any time and return to complete it. You'll each need the following information to complete your sections of the form: Personal information: name, contact info, Social Security number and birth date Bank statements (for checking and savings account balances) Investment records Income statements, including W-2s Tax returns Records of any child support received You'll also be asked which schools you want your FAFSA information shared with so keep your college list handy. You must list at least one college but you can add more colleges later. If you and/or your contributors filed a US tax return, you may be eligible to transfer your tax information directly from the IRS into your online FAFSA application. Select "Proceed to the IRS" to use the IRS Data Retrieval Tool. Double-check your work throughout. All of your information for the student and contributors must match their account exactly. Don't use nicknames or suffixes (such as Jr.). Most of the information you'll need to provide about income, investments, tax credits and account balances will come from your tax returns or bank statements. Submitting the FAFSA You and your contributors must each sign and submit your portion of the form when you're finished. You can monitor the status of a FAFSA application with your account (using your FSA ID) under the My Activity page. You'll also be notified when contributors sign and complete sections. After successfully submitting the FAFSA, you'll receive a confirmation page that includes your estimated Pell Grant eligibility and estimated SAI. The schools you listed on the FAFSA will use the SAI to determine your financial aid package and send you an offer after you've been accepted. What's the deadline for submitting the FAFSA? The opening date for the upcoming FAFSA and the deadline for the previous school year's FAFSA overlap, which can make keeping track of all the dates difficult. In general, the FAFSA application period opens on Oct. 1 before the following school year. So for high school students, you can submit FAFSA for your freshman year of college on Oct. 1 of your senior year. (The 2024-25 and 2025-26 openings were delayed because of glitches with the new form.) The federal deadline for FAFSA applications is June 30 at 11:59 p.m. Central Time for that academic year. Here's a chart for FAFSA deadlines to help: FAFSA dates to know School year Application opens Federal deadline 2024-25 December 2023 June 30, 2025 2025-26 November 2024 June 30, 2026 2026-27 Oct. 1, 2025 June 30, 2027 Many states and schools have their own deadlines for accepting the FAFSA, often earlier than the federal deadline. You can find your state's deadline on the federal student loan site. Check your college's admissions site for their deadline. Although it's nearly the end of the 2024-25 academic year, it's still worth submitting the FAFSA up until the federal deadline if you need help covering the cost of college. FAQs What if I don't want to (or can't) include my parents' information/income? If a parent is responsible for at least 50% of a child's financial support, the parent's information must be included on the FAFSA form. Otherwise, the application will not be considered complete and won't be accepted. If you're an independent student, you don't have to supply your parents' information. What happens if I make a mistake? You can correct mistakes on the FAFSA by logging into your account at using your FSA ID. Information imported from the IRS cannot be changed. Is FAFSA the only way to get financial aid? Filing the FAFSA unlocks access to free Pell Grants, need-based scholarships, work-study programs, and low-interest student loans. But it's not the only way to obtain financial aid. Some colleges use the CSS Profile Form to determine financial aid awards. You can also apply for private scholarships, which may not use the FAFSA.
Yahoo
13-06-2025
- Business
- Yahoo
Don't Wait – These 3 Steps Could Save you a Ton on Your Student Loans
Confused over new rules for student loans and repayments? Informed decisions made now could save thousands of dollars and lots of headaches trying to manage life's other financial challenges. Finance and policy expert Elaine Rubin worked for seven years at the U.S. Dept. of Education's Federal Student Aid office, making her extremely knowledgeable on this complex subject. Here is the cheat sheet of her three top tips to save money on your student loans. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Find out what you've borrowed and how much you still owe. Copy or snap key figures for later reference if you don't want to slog through contracts and fine print. Include sections that show interest rates and how much they've been adding to your loan liability. Look at your repayment plans. Are you enrolled in the government's Saving on a Valuable Education Plan, also known as SAVE? If so, pay attention to garnishment rules arising from legal challenges during the Biden administration. Rubin says total indebtedness is a "question that most borrowers can't answer." She adds that folks behind in their payments often don't know it, adding to interest costs. "Many borrowers I've worked with are surprised to find they owe more than they initially borrowed when it's time to start repayment, Rubin explained. "Because most loans, except subsidized ones, begin accruing interest from the moment they are disbursed." Trending: Maximize saving for your retirement and cut down on taxes: . SAVE enrollees have been in limbo since last summer, caught in a court-ordered administrative forbearance. That stopped interest rates, but the payment hold is scheduled to end no earlier than September, after government systems are updated. Check out the Department of Education's Loan Simulator for possible repayment options when the interest clock runs again. That site also has eligibility information for specific to Rubin, borrowers can also restate income if they earn less now than at the time of the first loan forbearance in 2020. Lower income may reduce your student loan payment if you are enrolled in an income-driven repayment plan. Borrowers on that program may also qualify for student loan forgiveness. But they shouldn't count on relief because, as Rubin notes, "legal challenges continue to threaten SAVE and some of the other IDR repayment plans." As a side note, teachers, nurses and other public service employees under the Department of Education's Public Service Loan Forgiveness program can cancel debt if they meet strict job length and repayment rules. Not everyone has the resources to pay for college, and a college loan, at the same time. But student loans generally don't start the repayment clock until six months after graduation, or after failing to meet enrollment guidelines. So, Rubin says it helps if the borrower can "pay off any interest that accrues while you're still in school. Even small contributions can help reduce the overall cost of your loans in the long run." Read Next: Many are using retirement income calculators to check if they're on pace — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Don't Wait – These 3 Steps Could Save you a Ton on Your Student Loans originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
10-06-2025
- Fast Company
How scammers are using AI to steal financial aid
It was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College? She had not, and as the officer suspected, somebody else had applied to Arizona community colleges in her name to scam the government into paying out financial aid money. When she checked her student loan servicer account, Brady saw the scammers hadn't stopped there. A loan for over $9,000 had been paid out in her name—but to another person—for coursework at a California college. 'I just can't imagine how many people this is happening to that have no idea,' Brady said. The rise of artificial intelligence and the popularity of online classes have led to an explosion of financial aid fraud. Fake college enrollments have been surging as crime rings deploy 'ghost students'— chatbots that join online classrooms and stay just long enough to collect a financial aid check. In some cases, professors discover almost no one in their class is real. Students get locked out of the classes they need to graduate as bots push courses over their enrollment limits. And victims of identity theft who discover loans fraudulently taken out in their names must go through months of calling colleges, the Federal Student Aid office and loan servicers to try to get the debt erased. On Friday, the U.S. Education Department introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity. It will apply only to first-time applicants for federal student aid for the summer term, affecting some 125,000 borrowers. The agency said it is developing more advanced screening for the fall. 'The rate of fraud through stolen identities has reached a level that imperils the federal student aid program,' the department said in its guidance to colleges. Public colleges have lost millions of dollars to fraud An Associated Press analysis of fraud reports obtained through a public records request shows California colleges in 2024 reported 1.2 million fraudulent applications, which resulted in 223,000 suspected fake enrollments. Other states are affected by the same problem, but with 116 community colleges, California is a particularly large target. Criminals stole at least $11.1 million in federal, state and local financial aid from California community colleges last year that could not be recovered, according to the reports. Colleges typically receive a portion of the loans intended for tuition, with the balance going directly to students for other expenses. Community colleges are targeted in part because their lower tuition means larger percentages of grants and loans go to borrowers. Scammers frequently use AI chatbots to carry out the fraud, targeting courses that are online and allow students to watch lectures and complete coursework on their own time. In January, Wayne Chaw started getting emails about a class he never signed up for at De Anza Community College, where he had taken coding classes a decade earlier. Identity thieves had obtained his Social Security number and collected $1,395 in financial aid in his name. The energy management class required students to submit a homework assignment to prove they were real. But someone wrote submissions impersonating Chaw, likely using a chatbot. 'This person is typing as me, saying my first and last name. . . . It's very freaky when I saw that,' said Chaw. The fraud involved a grant, not loans, so Chaw himself did not lose money. He called the Social Security Administration to report the identity theft, but after five hours on hold, he never got through to a person. As the Trump administration moves to dismantle the Education Department, federal cuts may make it harder to catch criminals and help victims of identity theft. In March, the Trump administration fired more than 300 people from the Federal Student Aid office, and the department's Office of Inspector General, which investigates fraud, has lost more than 20% of its staff through attrition and retirements since October. 'I'm just nervous that I'm going to be stuck with this,' Brady said. 'The agency is going to be so broken down and disintegrated that I won't be able to do anything, and I'm just going to be stuck with those $9,000' in loans. Criminal cases around the country offer a glimpse of the schemes' pervasiveness. In the past year, investigators indicted a man accused of leading a Texas fraud ring that used stolen identities to pursue $1.5 million in student aid. Another person in Texas pleaded guilty to using the names of prison inmates to apply for over $650,000 in student aid at colleges across the South and Southwest. And a person in New York recently pleaded guilty to a $450,000 student aid scam that lasted a decade. Identify fraud victims who never attended college are hit with student debt Brittnee Nelson of Shreveport, Louisiana, was bringing her daughter to day care two years ago when she received a notification that her credit score had dropped 27 points. Loans had been taken out in her name for colleges in California and Louisiana, she discovered. She canceled one before it was paid out, but it was too late to stop a loan of over $5,000 for Delgado Community College in New Orleans. Nelson runs her own housecleaning business and didn't go to college. She already was signed up for identity theft protection and carefully monitored her credit. Still, her debt almost went into collections before the loan was put in forbearance. She recently got the loans taken off her record after two years of effort. 'It's like if someone came into your house and robbed you,' she said. The federal government's efforts to verify borrowers' identity could help, she said. 'If they can make these hurdles a little bit harder and have these verifications more provable, I think that's really, really, really going to protect people in the long run,' she said. Delgado spokesperson Barbara Waiters said responsibility for approving loans ultimately lies with federal agencies. 'This is an unfortunate and serious matter, but it is not the direct or indirect result of Delgado's internal processes,' Waiters said. In San Francisco, the loans taken out in Brady's name are in a grace period, but still on the books. That has not been her only challenge. A few months ago, she was laid off from her job and decided to sign up for a class at City College San Francisco to help her career. But all the classes were full. After a few weeks, Brady finally was able to sign up for a class. The professor apologized for the delay in spots opening up: The college has been struggling with fraudulent applications. The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
The Independent
10-06-2025
- The Independent
Scammers are using AI to enroll fake students in online classes, then steal college financial aid
It was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College? She had not, and as the officer suspected, somebody else had applied to Arizona community colleges in her name to scam the government into paying out financial aid money. When she checked her student loan servicer account, Brady saw the scammers hadn't stopped there. A loan for over $9,000 had been paid out in her name — but to another person — for coursework at a California college. 'I just can't imagine how many people this is happening to that have no idea,' Brady said. The rise of artificial intelligence and the popularity of online classes have led to an explosion of financial aid fraud. Fake college enrollments have been surging as crime rings deploy 'ghost students' — chatbots that join online classrooms and stay just long enough to collect a financial aid check. In some cases, professors discover almost no one in their class is real. Students get locked out of the classes they need to graduate as bots push courses over their enrollment limits. And victims of identity theft who discover loans fraudulently taken out in their names must go through months of calling colleges, the Federal Student Aid office and loan servicers to try to get the debt erased. On Friday, the U.S. Education Department introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity. It will apply only to first-time applicants for federal student aid for the summer term, affecting some 125,000 borrowers. The agency said it is developing more advanced screening for the fall. 'The rate of fraud through stolen identities has reached a level that imperils the federal student aid program,' the department said in its guidance to colleges. Public colleges have lost millions of dollars to fraud An Associated Press analysis of fraud reports obtained through a public records request shows California colleges in 2024 reported 1.2 million fraudulent applications, which resulted in 223,000 suspected fake enrollments. Other states are affected by the same problem, but with 116 community colleges, California is a particularly large target. Criminals stole at least $11.1 million in federal, state and local financial aid from California community colleges last year that could not be recovered, according to the reports. Colleges typically receive a portion of the loans intended for tuition, with the balance going directly to students for other expenses. Community colleges are targeted in part because their lower tuition means larger percentages of grants and loans go to borrowers. Scammers frequently use AI chatbots to carry out the fraud, targeting courses that are online and allow students to watch lectures and complete coursework on their own time. In January, Wayne Chaw started getting emails about a class he never signed up for at De Anza Community College, where he had taken coding classes a decade earlier. Identity thieves had obtained his Social Security number and collected $1,395 in financial aid in his name. The energy management class required students to submit a homework assignment to prove they were real. But someone wrote submissions impersonating Chaw, likely using a chatbot. 'This person is typing as me, saying my first and last name. ... It's very freaky when I saw that,' said Chaw. The fraud involved a grant, not loans, so Chaw himself did not lose money. He called the Social Security Administration to report the identity theft, but after five hours on hold, he never got through to a person. As the Trump administration moves to dismantle the Education Department, federal cuts may make it harder to catch criminals and help victims of identity theft. In March, the Trump administration fired more than 300 people from the Federal Student Aid office, and the department's Office of Inspector General, which investigates fraud, has lost more than 20% of its staff through attrition and retirements since October. 'I'm just nervous that I'm going to be stuck with this,' Brady said. 'The agency is going to be so broken down and disintegrated that I won't be able to do anything, and I'm just going to be stuck with those $9,000' in loans. Criminal cases around the country offer a glimpse of the schemes' pervasiveness. In the past year, investigators indicted a man accused of leading a Texas fraud ring that used stolen identities to pursue $1.5 million in student aid. Another person in Texas pleaded guilty to using the names of prison inmates to apply for over $650,000 in student aid at colleges across the South and Southwest. And a person in New York recently pleaded guilty to a $450,000 student aid scam that lasted a decade. Identify fraud victims who never attended college are hit with student debt Brittnee Nelson of Shreveport, Louisiana, was bringing her daughter to day care two years ago when she received a notification that her credit score had dropped 27 points. Loans had been taken out in her name for colleges in California and Louisiana, she discovered. She canceled one before it was paid out, but it was too late to stop a loan of over $5,000 for Delgado Community College in New Orleans. Nelson runs her own housecleaning business and didn't go to college. She already was signed up for identity theft protection and carefully monitored her credit. Still, her debt almost went into collections before the loan was put in forbearance. She recently got the loans taken off her record after two years of effort. 'It's like if someone came into your house and robbed you,' she said. The federal government's efforts to verify borrowers' identity could help, she said. 'If they can make these hurdles a little bit harder and have these verifications more provable, I think that's really, really, really going to protect people in the long run,' she said. Delgado spokesperson Barbara Waiters said responsibility for approving loans ultimately lies with federal agencies. 'This is an unfortunate and serious matter, but it is not the direct or indirect result of Delgado's internal processes,' Waiters said. In San Francisco, the loans taken out in Brady's name are in a grace period, but still on the books. That has not been her only challenge. A few months ago, she was laid off from her job and decided to sign up for a class at City College San Francisco to help her career. But all the classes were full. After a few weeks, Brady finally was able to sign up for a class. The professor apologized for the delay in spots opening up: The college has been struggling with fraudulent applications. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Associated Press
10-06-2025
- Associated Press
Scammers are using AI to enroll fake students in online classes, then steal college financial aid
It was an unusual question coming from a police officer. Heather Brady was napping at home in San Francisco on a Sunday afternoon when the officer knocked on her door to ask: Had she applied to Arizona Western College? She had not, and as the officer suspected, somebody else had applied to Arizona community colleges in her name to scam the government into paying out financial aid money. When she checked her student loan servicer account, Brady saw the scammers hadn't stopped there. A loan for over $9,000 had been paid out in her name — but to another person — for coursework at a California college. 'I just can't imagine how many people this is happening to that have no idea,' Brady said. The rise of artificial intelligence and the popularity of online classes have led to an explosion of financial aid fraud. Fake college enrollments have been surging as crime rings deploy 'ghost students' — chatbots that join online classrooms and stay just long enough to collect a financial aid check. In some cases, professors discover almost no one in their class is real. Students get locked out of the classes they need to graduate as bots push courses over their enrollment limits. And victims of identity theft who discover loans fraudulently taken out in their names must go through months of calling colleges, the Federal Student Aid office and loan servicers to try to get the debt erased. On Friday, the U.S. Education Department introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity. It will apply only to first-time applicants for federal student aid for the summer term, affecting some 125,000 borrowers. The agency said it is developing more advanced screening for the fall. 'The rate of fraud through stolen identities has reached a level that imperils the federal student aid program,' the department said in its guidance to colleges. Public colleges have lost millions of dollars to fraud An Associated Press analysis of fraud reports obtained through a public records request shows California colleges in 2024 reported 1.2 million fraudulent applications, which resulted in 223,000 suspected fake enrollments. Other states are affected by the same problem, but with 116 community colleges, California is a particularly large target. Criminals stole at least $11.1 million in federal, state and local financial aid from California community colleges last year that could not be recovered, according to the reports. Colleges typically receive a portion of the loans intended for tuition, with the balance going directly to students for other expenses. Community colleges are targeted in part because their lower tuition means larger percentages of grants and loans go to borrowers. Scammers frequently use AI chatbots to carry out the fraud, targeting courses that are online and allow students to watch lectures and complete coursework on their own time. In January, Wayne Chaw started getting emails about a class he never signed up for at De Anza Community College, where he had taken coding classes a decade earlier. Identity thieves had obtained his Social Security number and collected $1,395 in financial aid in his name. The energy management class required students to submit a homework assignment to prove they were real. But someone wrote submissions impersonating Chaw, likely using a chatbot. 'This person is typing as me, saying my first and last name. ... It's very freaky when I saw that,' said Chaw. The fraud involved a grant, not loans, so Chaw himself did not lose money. He called the Social Security Administration to report the identity theft, but after five hours on hold, he never got through to a person. As the Trump administration moves to dismantle the Education Department, federal cuts may make it harder to catch criminals and help victims of identity theft. In March, the Trump administration fired more than 300 people from the Federal Student Aid office, and the department's Office of Inspector General, which investigates fraud, has lost more than 20% of its staff through attrition and retirements since October. 'I'm just nervous that I'm going to be stuck with this,' Brady said. 'The agency is going to be so broken down and disintegrated that I won't be able to do anything, and I'm just going to be stuck with those $9,000' in loans. Criminal cases around the country offer a glimpse of the schemes' pervasiveness. In the past year, investigators indicted a man accused of leading a Texas fraud ring that used stolen identities to pursue $1.5 million in student aid. Another person in Texas pleaded guilty to using the names of prison inmates to apply for over $650,000 in student aid at colleges across the South and Southwest. And a person in New York recently pleaded guilty to a $450,000 student aid scam that lasted a decade. Identify fraud victims who never attended college are hit with student debt Brittnee Nelson of Shreveport, Louisiana, was bringing her daughter to day care two years ago when she received a notification that her credit score had dropped 27 points. Loans had been taken out in her name for colleges in California and Louisiana, she discovered. She canceled one before it was paid out, but it was too late to stop a loan of over $5,000 for Delgado Community College in New Orleans. Nelson runs her own housecleaning business and didn't go to college. She already was signed up for identity theft protection and carefully monitored her credit. Still, her debt almost went into collections before the loan was put in forbearance. She recently got the loans taken off her record after two years of effort. 'It's like if someone came into your house and robbed you,' she said. The federal government's efforts to verify borrowers' identity could help, she said. 'If they can make these hurdles a little bit harder and have these verifications more provable, I think that's really, really, really going to protect people in the long run,' she said. Delgado spokesperson Barbara Waiters said responsibility for approving loans ultimately lies with federal agencies. 'This is an unfortunate and serious matter, but it is not the direct or indirect result of Delgado's internal processes,' Waiters said. In San Francisco, the loans taken out in Brady's name are in a grace period, but still on the books. That has not been her only challenge. A few months ago, she was laid off from her job and decided to sign up for a class at City College San Francisco to help her career. But all the classes were full. After a few weeks, Brady finally was able to sign up for a class. The professor apologized for the delay in spots opening up: The college has been struggling with fraudulent applications. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
