Press Releases

Today, Education and Workforce Committee Chairman Tim Walberg (R-MI) issued the following statement in response to the Department of Justice's announcement of indictments stemming from Operation Ghostbusters, an investigation into a large-scale scheme involving criminals using stolen identities to fraudulently obtain federal student aid:
 
“Federal student aid should go to real students, not criminals using stolen identities to rip off American taxpayers. Period,” said Chairman Walberg. “Today's announcement is another reminder of just how serious ghost student fraud has become and why Congress must act to stop it. I applaud the Trump administration and the Department of Justice for going after these criminals and holding fraudsters accountable. House Republicans have already taken action to crack down on this fraud. Now it’s time to get these safeguards across the finish line so criminals can’t game the system and taxpayer dollars go to students who actually need them.”
 
Background:
In June, the House passed H.R. 7892, No Aid for Ghost Students Act, introduced by Higher Education and Workforce Development Subcommittee Chairman Burgess Owens (R-UT). The legislation also includes key provisions from Rep. Glenn “GT” Thompson's (R-PA) Student Aid Fraud Oversight and Accountability Act.
 
The legislation cracks down on ghost student fraud by requiring identity fraud screening of federal student aid applications, additional verification for suspicious applications before aid is disbursed, and stronger federal oversight of student aid fraud.
 
The Committee advanced the legislation in March as part of its broader efforts to protect taxpayers and prevent criminals from exploiting federal student aid programs.