Ghost Students: How Identity Thieves Are Taking Out Student Loans in Your Name

“Ghost students” are one of the fastest-growing and most damaging forms of identity theft in the United States — and many victims don’t realize it until their credit is already in serious trouble.

In a ghost student scam, criminals steal a real person’s identity, enroll them in college without their knowledge, and take out federal student loans and financial aid in their name. The scam is so widespread that federal investigators, news outlets, and the U.S. Department of Education have confirmed tens — and potentially hundreds — of millions of dollars in fraudulent student aid tied directly to identity theft.

If you’ve discovered a student loan taken out in your name, received notices about student loans you didn’t apply for, or learned that someone enrolled in college using your identity, this guide explains what’s happening, how to report it, and what you can do to protect your credit.

What Are “Ghost Students”?

“Ghost students” are fake or synthetic college applicants created using stolen identities. Criminals use real Social Security numbers, names, and dates of birth — often mixed with fake addresses or bank accounts — to pose as legitimate students.

Once enrolled, these fraudsters apply for federal grants and student loans, collect the money, and then disappear. The real victim is left with damaged credit and unexpected federal debt.

According to an investigation by ABC7 Chicago, victims often don’t learn about the fraud until they receive a letter from the U.S. Department of Education, a loan servicer, or even the IRS demanding repayment for loans they never knew existed. In some cases, victims discover multiple loans tied to schools they’ve never attended.

Why Ghost Student Scams Are Exploding

Ghost student fraud has surged in recent years due to a perfect storm of vulnerabilities:

• Open-enrollment community colleges, which are legally required to accept most applicants
• Online admissions and FAFSA systems that expanded rapidly during and after COVID-19
• Artificial intelligence and automation, allowing scammers to submit thousands of applications at once

A PBS NewsHour investigation reported that sophisticated criminal networks, some operating overseas, flood colleges with fake applicants — even submitting homework assignments to avoid detection.

The U.S. Department of Education has confirmed that this is not a minor issue. In a May 2025 press release, the Department reported uncovering nearly $90 million in student aid disbursed to ineligible recipients — including over $30 million paid to deceased individuals whose identities were stolen.

Ghost Student Fraud in Pennsylvania and the Mid-Atlantic

For consumers in Pennsylvania, this issue hits especially close to home.

A 6ABC Philadelphia investigation found that community colleges in Pennsylvania have been heavily targeted. Delaware County Community College reported more than 500 ghost students in a single year, while the Community College of Philadelphia identified over 600 fraudulent applications — roughly 5% of all applicants. The school canceled more than $600,000 in financial aid tied to ghost student fraud.

This regional impact matters because victims are often local residents whose identities were stolen, not distant strangers.

Signs Someone Took Out Student Loans in Your Name

Many ghost student victims don’t realize what’s happening until serious damage is already done. Warning signs include:

• You receive mail from a college you never attended
• You get notices from the U.S. Department of Education or a loan servicer
• Your credit report shows student loans you didn’t apply for
• FAFSA confirmations you never submitted
• A sudden drop in your credit score
• Collection calls about federal student debt you don’t recognize

The Federal Trade Commission has warned that checking your credit report regularly is one of the most effective ways to spot identity theft early.

What to Do If Someone Enrolls in College Using Your Identity

If you suspect ghost student fraud, act quickly. Delays can make the damage worse.

Step 1: Freeze Your Credit Immediately

Place a free credit freeze with all three major credit bureaus (Equifax, Experian, and TransUnion). This prevents additional loans from being issued.

Step 2: Get Your Credit Reports

Request your free reports from AnnualCreditReport.com and identify every fraudulent account.

Step 3: Contact the School and Loan Servicer

Notify the college and the student loan servicer in writing that the enrollment and loans are fraudulent.

Step 4: File an Identity Theft Report

Report the fraud at IdentityTheft.gov, the FTC’s official identity theft reporting portal. This creates legal documentation you’ll need later.

How to Report Student Loan Identity Theft

Reporting is critical — both for protecting yourself and stopping future fraud.

You should report ghost student identity theft to:

• The Federal Trade Commission (FTC) via IdentityTheft.gov
• The U.S. Department of Education Office of Inspector General or Federal Student Aid
• The affected college(s)
• Your loan servicer(s)
• Local law enforcement, if required for documentation

The Department of Education has acknowledged serious failures in verification systems and has resumed enhanced FAFSA identity screening to combat this type of fraud.

How to Remove Fraudulent Student Loans from Your Credit Report

Removing fraudulent student loans is rarely quick — and victims often face resistance from loan servicers.

Key steps include:

• Disputing the loans with all three credit bureaus
• Providing your FTC Identity Theft Report
• Submitting affidavits of fraud to loan servicers
• Monitoring compliance with federal credit reporting laws

Many victims find that loan servicers and credit bureaus delay or deny disputes, even when fraud is well documented. This is where legal help can make a significant difference.

Why Legal Help Matters for Ghost Student Victims

Ghost student scams and student loan fraud are areas governed by complex federal laws.

An experienced consumer protection and identity theft law firm like Vullings Law Group can help:

• Force corrections to your credit reports
• Challenge unlawful loan servicing practices
• Stop collection efforts on fraudulent debt
• Hold companies accountable when they fail to investigate properly

Victims should not have to navigate this alone — especially when the fraud was enabled by systemic failures acknowledged by federal agencies.

Vullings Law Group Helps Victims of Ghost Student Identity Theft

If you’ve discovered a student loan taken out in your name, or student loans you didn’t apply for, legal help may be available.

Our firm represents student loan identity theft victims across Pennsylvania, New Jersey, New York, and Washington, D.C. . We specialize in helping consumers who are dealing with identity theft, credit report damage, and fraudulent debt. We understand how ghost student scams work — and how to fight back.

Contact us today to discuss your situation and learn how we may be able to help protect your credit, your finances, and your future.