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Practically 2,000 Minnesota ‘Ghost College students’ Fraudulently Acquired $12.5 Million

newjyizh by newjyizh
December 21, 2025
Reading Time: 6 mins read
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Practically 2,000 Minnesota ‘Ghost College students’ Fraudulently Acquired $12.5 Million


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(THE FEDERALIST) –  In Minnesota, dwelling to the biggest inhabitants of Somali immigrants within the U.S. and the positioning of quite a few fraud investigations, fraudsters acquired $12.5 million in pupil mortgage and schooling grant cash, in line with a letter Schooling Secretary Linda McMahon despatched to Minnesota Gov. Tim Walz.

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The letter calls on Walz to resign, and states {that a} new fraud prevention system on the division has discovered over $1 billion in “tried monetary help theft,” together with by worldwide fraud rings and synthetic intelligence (AI) bots.

“[Y]our careless lack of oversight and abuse of the welfare system has attracted fraudsters from around the globe, particularly from Somalia, to ascertain a beachhead of criminality in our nation,” McMahon wrote. “As President Trump put it, you may have turned Minnesota right into a ‘fraudulent hub of cash laundering exercise.’”

“At first of this yr, the U.S. Division of Schooling grew to become conscious that fraudulent faculty candidates, particularly concentrated in Minnesota, had been gaming the federal postsecondary schooling system to gather cash that was supposed for younger Individuals to assist them afford faculty,” she mentioned.

McMahon referred to the fraudsters as “‘ghost college students’ as a result of they weren’t ID-verified and infrequently didn’t stay in america, or they merely didn’t exist,” and famous that, “[i]n Minnesota, 1,834 ghost college students had been discovered to have acquired 12.5 million in taxpayer-funded grants and loans.”

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They “collected checks from the federal authorities, shared a small portion of the cash with the faculty, and pocketed the remainder–with out attending the faculty in any respect,” in line with the letter.

The letter comes after Somalis in Minnesota, particularly, have been uncovered as having massively defrauded American taxpayers. They’ve even reportedly funded terrorists again of their nation.

The information surrounding Somali fraud consists of allegations of a number of scams, together with claims that an autism “supplier” enrolled Somali kids who didn’t have an autism analysis in a welfare fraud scheme.

The outrage, amongst many different cultural issues with Somalis, has resulted in President Donald Trump meaning to cancel some Somalis’ non permanent protected standing.

Trump not too long ago identified that Somalis “contribute nothing” to American society. “I don’t need them in our nation. I’ll be trustworthy with you,” he mentioned, noting Somalia is “barely a rustic” the place “they simply run round killing one another.”

Whereas it ought to be completely surprising to each American that authorities methods apparently don’t have fundamental safeguards to guarantee that fraud like that is unimaginable, it’s unsurprising {that a} tradition outlined by rip-off artists is discovering each technique to money out. Simply have a look at Rep. Ilhan Omar, D-Minn., who allegedly married her brother (which might possible represent marriage, immigration, and tax fraud) with the intention to enter america.

“Scammers have gotten wealthy off federal housing, schooling, meals stamp, and small enterprise applications–even defrauding help for elder care and autistic kids,” McMahon mentioned in Tuesday’s letter. “Becoming a member of these criminals of their schemes have been Minnesota politicians who profit–each in votes and donations–from fraudsters’ assist. Like the novel Islamic terror teams abroad who obtain Minnesota cash to kill American servicemembers, Minnesota’s political elite has turned a blind eye and even helped facilitate the laundering of cash that was meant to assist America’s least lucky.”

In June, the Division of Schooling introduced a “nationwide effort to get rid of id theft and fraud within the federal pupil help applications for the autumn 2025 semester,” and a requirement for establishments of upper schooling to confirm “sure first-time candidates who’re enrolled in the summertime time period,” as a direct effort to fight fraud.

“Federal Pupil Support (FSA) information signifies that the speed of fraud by means of stolen identities, significantly involving technologically superior fraud rings, has reached a degree that imperils the federal pupil help applications,” the division acknowledged on the time.

One other apparent safeguard, additionally introduced by the Schooling Division in June, required first-time pupil help candidates to “current, both in individual or on a stay video convention, an unexpired, legitimate, government-issued photograph identification to an institutionally approved particular person and the establishment should protect a duplicate of this documentation.”

Because the division has famous, the Biden administration eliminated verification capabilities for pupil loans and “diverted sources from fraud prevention towards its unlawful mortgage forgiveness efforts,” opening the door for large fraud.

How are you praying for our authorities? Share your prayers and scriptures beneath.

This text was initially printed in The Federalist.



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