Demuth promises to crack down on Ghost Students

GOP gubernatorial nominee Lisa Demuth issued a statement last night about 'ghost student' fraud. This KSTP investigation article highlights the situation. Speaker Demuth's statement says "Yet another scheme to defraud taxpayers was revealed last night. This is yet another example of Minnesota institutions not protecting the tax dollars they receive from hard-working Minnesotans. This reporting focuses on the harm to federal loan programs, but Minnesota, through the State Grant program and NorthStar Promise Act, provides state funds to attend these same colleges. As speaker, I led the fight to provide $3 million to Minnesota State for software to detect and prevent fraud involving ‘ghost students'. When I am governor, I will ensure that controls and assurances are in place before any state dollars are sent to ghost students or the schools that allow them to enroll. If this requires additional authority, I will immediately work with the legislature. The era of letting scams and frauds fester in Minnesota ends when I’m governor.”

It's obvious that Speaker Demuth will take fraud, in all its forms, seriously. I don't get that impression from Sen. Klobuchar.

According to the KSTP article, "The threat of 'ghost students' has become so prevalent at Minnesota’s largest community college that administrators now say nearly a third of all applications to the school are potentially fraudulent. That revelation recently came from Dara Hagen, vice president of Student Affairs at Normandale Community College in Bloomington."

UTTERLY DISGUSTING

While plans for exactly how to use that extra funding are being finalized, one recent victim of a ghost student is using his own high-tech skills to call out what he considers weaknesses in the state’s system. Jacob Rosenbacher, 32, recently discovered his name and personal information were used to enroll at Normandale Community College. His "ghost student" then secured a federal student loan of about $9,000. "My credit dropped 168 points overnight," Rosenbacher said.

The self-described "tech guy" lives in Chicago and told 5 INVESTIGATES he had never heard of Normandale or Bloomington, Minnesota. "And what Normandale, in my view, didn’t do is they didn’t check my identity against anything," Rosenbacher said. "That’s all they would have had to do. They would have had to just Google me."

How do you not perform such basic functions? A bank would've done this background check. They couldn't stay in business long if they didn't do background checks. Community colleges, though, don't suffer the penalties of such dereliction of duties. This KSTP 5 INVESTIGATES report goes into detail on Normandale's fraud:

More reports are being put together. The chief question is this: where's Amy Klobuchar? These are FEDERAL TAX DOLLARS getting ripped off. Student loans became part of the federal government as part of the ACA.

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