U.S. Department of Education Accuses Minnesota of Failing to Catch Ghost Student College Applications

(KNSI) – In a blistering letter addressed to Minnesota Governor Tim Walz, another federal agency is accusing the state of turning a blind eye to fraud from Somali natives.

U.S. Secretary of Education Linda McMahon characterized Walz’s governance as careless and lacking in oversight. She says the abuse of the welfare system in the state established a beachhead of criminality now being taken advantage of by criminals from around the world, particularly Somalia.

The letter specifically references a U.S. Department of Education investigation into “ghost students.” McMahon alleges Minnesota allowed applicants for college to worm their way into student aid meant for young Americans to help them afford college.

McMahon states that, in reality, the applications weren’t tied to any government-issued ID, and often weren’t even based in the country. Sometimes, the aid was awarded to people the Department of Education can’t even verify exist. McMahon says 1,834 ghost students were given $12.5 million in taxpayer-funded grants and loans through the State of Minnesota alone.

She says the scheme results in the fraudsters collecting checks from the federal government, sharing a small portion with the college, and then they get to pocket the rest, all without setting foot in a classroom. The scheme has been used by coordinated international fraud rings, sometimes employing AI bots to overwhelm application systems.

McMahon concluded the letter by urging Walz to resign.

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