Linda McMahon testifies at her Senate confirmation hearing in February.
California – California’s community college system is under renewed scrutiny after reports revealed that scammers have stolen more than $13 million in financial aid over the past year. The revelations have sparked rare bipartisan concern, with nine Republican members of Congress and Democratic state Assemblymember Blanca Rubio urging separate investigations into the growing fraud.
In a letter sent April 11 to U.S. Education Secretary Linda McMahon and U.S. Attorney General Pam Bondi, Republican lawmakers called for a federal probe, citing CalMatters’ reporting that found fake students are exploiting the system to siphon federal and state funds. “Allowing this rise in fraud to go unaddressed is negligent,” the lawmakers wrote, tying the issue to broader concerns about federal waste.
Rubio, a Democrat representing West Covina, sent a separate letter Wednesday calling for a state audit of the California Community Colleges system to assess the scope of fraud and the effectiveness of prevention efforts. Lawmakers will decide in June whether to move forward with that audit, which could take years to complete.
Community college leaders agree fraud is an issue but say it’s being overstated. Larry Galizio, president of the Community College League of California, criticized the federal letter as “disingenuous,” arguing the state has already invested over $150 million since 2022 to boost cybersecurity and prevent fraud. “Blaming the victim and then cutting resources is not a policy approach that’s going to be effective,” Galizio said.
Chris Ferguson, executive vice chancellor at the Chancellor’s Office, said that while scammers do sometimes slip through, the fraud rate is extremely low — just 0.21% of all aid disbursed in the 2023-24 fiscal year. “That means 99.8% of financial aid was disbursed to real students,” he emphasized.
Still, concerns persist among faculty overwhelmed by fake online students. Stephanie Goldman of the Faculty Association of California Community Colleges said professors feel ignored. “Some of our faculty members feel like they’ve been screaming into the void,” she said.
Students like Ivan Hernandez, president of the statewide community college student association, say the fraud is real — but not their top concern. “Homelessness and food insecurity affect half our students,” he said. “That’s where the focus should be.”
Whether the Trump administration will act on the request remains unclear.
