The problem is straightforward: you never applied for the loan, yet a federal student loan appears in your name. Across the US, identity thieves known as 'ghost students' have stolen more than $350 million in federal student aid, according to the Department of Education's Office of Inspector General. How Does the Ghost Student Scheme Work? In some schemes, fraudsters enrol in two or three colleges simultaneously and collect financial aid from each without ever attending classes. Ghost student scams not only steal taxpayer dollars; they also erode trust.