The Brief

Community colleges in California for years have been fighting a losing battle with fraudsters who have stolen millions of dollars in federal and state financial aid. But now state officials believe they are finally turning a corner thanks to new tools.

The game-changer? Artificial intelligence.

About 80 of the state’s 115 community colleges are now or will soon be using an AI model that detects fake students by looking for information such as shared phone numbers, suspicious course-taking patterns, and even an applicant’s age. Officials say the AI catches twice as many scammers as the human staff, with some campuses estimating that they are now detecting more than 90% of fraudsters, who are a mix of bots and human criminals, sometimes even located in other countries.

Where things stand

California’s community colleges have lost at least $18 million in aid since 2021, though the actual total could be much higher since colleges were not as skilled at identifying fraud early in the pandemic as they are now. Most of the stolen funds are federal aid, which the local colleges are responsible for distributing. But scammers have also grabbed millions in state aid, including Cal Grants and institutional awards.

The colleges reported losing more than $11 million to financial aid fraud in 2024 as they were inundated with fake students. That year, at least 31% of applicants statewide were fraudulent. Officials predict the aid lost to fraud this year will be much less at campuses using the AI, and that they will further reduce fraud in 2026, when the AI is fully implemented at more colleges.

“When our colleges are looking record by record, they’re not seeing the connections or patterns. But AI is really good at finding those things,” said Jory Hadsell, a visiting executive in the California Community Colleges Chancellor’s Office. Before joining the chancellor’s office this year to help combat the fraud problem, he helped develop the AI model as vice chancellor of technology for the Foothill-De Anza Community College District.

To make it easier for real students to verify their identity when applying, the community colleges are also collaborating with the California Department of Motor Vehicles and plan to use the department’s new mobile ID system. Students with a California license or ID card can upload it through the DMV’s wallet app. They can then use that to verify their identity when they apply, rather than verifying with ID.me, the college system’s default platform.

“The DMV is like the holy grail of identity in California,” Hadsell said. “These pieces all fit together to create this layered approach, and somewhere along the line, we’re going to stop most of this fraud.”

Why fraud has been prevalent

Community colleges are susceptible to fraud because they are generally open access for enrollment and don’t deny admission to students who meet basic requirements. California’s community college system, in particular, is a big target for fraudsters due to its massive size.

Fraud was worsened by the pandemic, with the shift to mostly remote instruction creating an easy opportunity for online scammers pretending to be real students. It has ramifications not just for colleges but also for their legitimate students, who are sometimes left on waitlists for key classes because scammers initially take up many of the seats.

Even as colleges have learned more about the fraudsters, keeping them out has proven challenging. Online criminals are sophisticated and usually one step ahead of typically understaffed campuses. Officials believe, however, that the AI tool could change that.

How AI is helping

In February 2024, the Foothill-De Anza district in Santa Clara County signed a contract for $56,250 with N2N Services, a software company that created an AI platform called Lightleap. The district at the time intended to use it mostly for course predictions, which involves guessing which classes a student will enroll in based on their previous coursework.

But the fraud problem “kind of hit us in the face,” Hadsell said. “So we said, ‘All right, let’s see what we can do with fraud.'”

Hadsell and his staff used data from the district’s two colleges — Foothill and De Anza — to train the AI model to detect fraud. The tool’s features include device fingerprinting, a method of identifying information about the device accessing the application, such as IP addresses and the user’s time zone. It also considers other information, like the student’s age and whether their phone number or email address matches an applicant at another school.

When they compared it to their homegrown system of detecting fraud, they found that the AI tool was catching twice as many scammers. In the first round, they dropped about 1,000 suspected fraudsters and didn’t hear from any students claiming they had been wrongly identified as a fraudster.

They have since refined and expanded the model, which uses a scoring system to determine if it believes a student is fake.

College leaders say the tools will also help them more easily comply with the Trump administration’s new verification rules that will require more first-time applicants across the country to show identification.

How it works

The AI model now has three stages: one when students are applying, another when they register for courses, and a third when they apply for financial aid. The hope is that even if a scammer gets through the application process, the AI will catch them when they register for a class or apply for aid.

After implementing it in the Foothill-De Anza district, officials shared it with the nearby West Valley-Mission Community College District and their two colleges. Eventually, college presidents from across the state started calling and asking if they could use the AI.

That included Meridith Randall, the president of Golden West College in Huntington Beach.

Like many others, Golden West has been plagued by fraudsters in recent years. The college was hit particularly hard in the summer of 2023, shortly before the fall term. Officials there at the time had a “moment of euphoria,” thinking their enrollments were climbing, with many of their classes completely full.

“And then you realize these are not real students,” Randall said.

At that time, Randall said the staff started to grow suspicious when they noticed classes were filling in subjects near the top of the alphabet, like accounting and business, while other classes had open seats. They also noticed the course-taking patterns of some students “made no sense,” such as a student enrolling in accounting, but also a jewelry-making class, Randall said.

In several classes, staff and faculty would eventually identify between 10 and 15 scammers and drop them. Other fraudsters likely made it through unscathed, since the college at the time was relying on human staff who Randall acknowledged “were burning out.”

Golden West implemented the AI tool ahead of the spring 2025 semester and immediately noticed a change: instead of 10 or 15 fraudsters getting flagged, faculty now catch a maximum of two or three fake students who need to be dropped. Randall estimates that the AI tool has eliminated 96% of fraud.

In the past, Randall recalls fraudsters constantly evolving and outpacing the detection tactics of human staff. “Three years ago, we were looking for, is this even a real address? Well, as the fraudsters got more sophisticated, they started using real addresses, so then you had to look for something else,” she said. “AI can learn the patterns and recognize them much faster than a human.”

As AI is introduced at more colleges across the state, it’s likely to become even better at detecting fraud, Hadsell said. More data and more information mean AI learns more about what fraud looks like.

“That’s all just continuously training the model. If it detects someone at Meridith’s institution that also has an application in another institution, it can flag that in both places,” Hadsell said. “It’s like a network effect across the system. It amplifies our ability to stop it.”

The number of Californians without health insurance could double from 2 million today to 4 million by 2030, according to a report from the state Legislative Analyst's Office. It’s the state budget office’s preliminary attempt to quantify how federal legislation known as the “One Big Beautiful Bill” will reshape healthcare access statewide.

The One Big Beautiful Bill is driving nearly 90% of the projected coverage loss, according to the LAO report. It's mostly Medi-Cal enrollees who are expected to be dropped when new work requirements take effect in 2027. The remaining 10% are largely people leaving the state's health insurance marketplace, Covered California, after enhanced federal premium subsidies expired last year.

What's the impact to coverage?

L.A. County officials estimate that recent Medi-Cal changes could put coverage at risk for hundreds of thousands of residents and cost the health departments about $800 million a year. A UC Berkeley Labor Center analysis projected more than 1 million Medi-Cal enrollees could lose coverage by 2028.

The LAO report also warns that county indigent health programs for uninsured residents will soon face a surge in demand they’re not prepared to meet. Those county programs had enrolled about 850,000 people statewide before the federal government expanded Medicaid coverage in 2014. Total enrollment is currently 10,000 statewide, but the trend is going to reverse, according to the report.

What's the impact to health-care providers?

More uninsured people means hospitals and clinics provide more services without getting paid. The LAO projects that uncompensated care costs at hospitals could grow by several billion dollars statewide by 2030. Clinics face steeper losses because they run on smaller budgets and depend more heavily on Medi-Cal revenue.

The LAO also projects premiums on the individual health insurance market will rise as healthier people drop coverage.

What are proposals to help?

The LAO itself doesn’t recommend new spending and instead urges lawmakers to track what happens to hospitals, clinics and county programs before taking action. But both L.A. County and state officials are pushing tax efforts to combat federal cuts.

L.A. County voters will decide June 2 on Measure ER, a half-cent sales tax that would generate about $1 billion a year for hospitals and clinics. ANovember statewide ballot initiative would impose a one-time 5% tax on Californians worth over $1 billion and direct 90% of proceeds to Medi-Cal.

California regulators say State Farm has illegally delayed, underpaid and denied claims from policyholders affected by the 2025 L.A. fires — something fire survivors have said for months.

The California Department of Insurance announced Monday that it has taken the first step in the process to bring the allegations to a public hearing before an administrative judge. That could result in the state’s largest home insurer paying up to about $4 million in penalties, and suspension of its license for up to a year, meaning it could not write new policies in California during that time.

“Our investigation found that State Farm delayed, underpaid, and buried policyholders in red tape at the worst moment of their lives,” state Insurance Commissioner Ricardo Lara said in a statement.

The state analyzed 220 randomly selected claims — out of more than 11,000 filed with State Farm in response to last year’s fires — and found hundreds of violations in more than half them. Attorneys for the state called it a “troubling pattern” in their filing.

State Farm denied the allegations and called the state’s move “politically motivated” in a lengthy statement posted to its website.

Every Fire Survivors Network, a coalition representing thousands of L.A. fire survivors, pressured the state for months to investigate State Farm’s handling of wildfire claims.

Joy Chen, who co-founded the group after her home was damaged in the Eaton Fire, said the state’s action is far from enough.

“It’s just very disappointing to see our regulator issue a report that shows his own failures over the last 16 months,” she told LAist.

Only a few dozen homes have been rebuilt so far in both Altadena and Pacific Palisades since the fires destroyed more than 16,000 buildings, mostly homes, in those communities and nearby areas.

A survey by the nonprofit Department of Angels last year found that nearly three-quarters of L.A. fire survivors reported delays, denials and low payouts of their claims across all insurers.

“What we need is for all State Farm contracts to be enforced so that Los Angeles families can have the money that we need to move forward with getting back home,” Chen said.

The state’s alleged violations carry a fine of up to $5,000, and up to $10,000 if the violations are found to be willful. The case will be heard by a state administrative law judge, who will provide a recommendation to Insurance Commissioner Ricardo Lara on a possible penalty.

The Insurance Department said people with homeowners policies from any insurer can report problems with their claims at insurance.ca.gov or by calling (800) 927-4357.

Yes, you could put a screen in your backyard and call up your friends to watch a particularly compelling World Cup game after the tournament begins June 12.

But FIFA is turning each game into a public celebration, sponsoring 10 outdoor Fan Zone watch parties with large viewing screens across L.A. County through the final on July 19.

Details were released on Monday, including locations, dates and prices.

The Fan Zones open in a staggered schedule from one day to four days each, starting with the Original Farmers Market on June 18 - 21, and then popping up across the region until the glorious end on July 19 in downtown Burbank.

Ticket prices range from free (City of Downey, Union Station L.A., “Magic” Johnson Park, Whittier Narrows) to over $300 for a VIP experience with a viewing lounge and a concert at the downtown Burbank Fan Zone on the day of the World Cup final match on July 19.

Fan Zone kick off

At the first Fan Zone, at The Original Farmers Market from June 18 for four days, entry will cost you $5 per day or $17 for all four days. Kids age 3 and under are free. (FIFA says the zones are family friendly).

You’ll be able to see four matches there each of the four days, including Mexico vs. South Korea on June 18 at 6 p.m. and USA vs. Australia on June 19 at noon.

FIFA World Cup 2026 scarves are displayed during the ribbon cutting for the LAX/Metro Transit Center rail and bus public transportation station at LAX on June 6, 2025.

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You won’t have to squint to find your favorite player or catch the goals. The Farmer’s Market will include a 30-foot viewing screen as well as a 15-foot secondary screen to watch the games. There will be beer gardens, and you can purchase food from the Market's dozens of establishments.

Other Fan Zones

The West Harbor L.A. Fan Zone will give people an opportunity to experience the newest major development along the San Pedro waterfront, a 42-acre waterfront district that’s been years in the making.

The Union Station L.A. Fan Zone on June 25 is free and includes match viewing, music, food, and immersive fan experiences, featuring live DJs.

The final Fan Zone opens July 18 and 19 in downtown Burbank for the World Cup’s last two matches. FIFA says it’ll include “an adjacent international street fair filled with global flavors and cultural experiences.” Tickets range from $25 to over $300

The full list of the Fan Zones is here.

This of course, isn’t the only opportunity to watch World Cup matches with groups of people in SoCal. The city of L.A. will host its own watch parties.

Up against a massive court backlog that can drag their cases for years, asylum seekers face steep costs when pursuing their dreams of college in California.

Asylum-seeking students in California often face a double blow: they are charged higher tuition for nonresidents and excluded from most financial aid. For students and their families, this can mean thousands of dollars paid out of pocket and years of financial stress as their immigration cases remain unresolved.

Before establishing residency, asylum-seeking students are charged non-resident rates, which are about three times what state residents pay for public universities and roughly eight to 13 times more for community colleges, depending on the district.

All asylum seekers are disqualified from federal financial aid. The few who qualify for California’s state aid may never know their options, or face hurdles in obtaining it due to a patchwork of financial aid processes.

The state’s higher education systems are not mandated to track asylum seekers, making state budget impacts nearly unquantifiable during legislative attempts to expand financial aid eligibility.

“I only see them struggling,” said Eric Cline, social services program director at OASIS Legal Services, which supports LGBTQ+ asylum seekers across the Bay Area and Central Valley. “I’m always surprised (when) a few clients tell me 'I just graduated from college.’ I think, ‘Wow, how did that happen?’”

Policy changes stoke uncertainty for asylum seekers

Asylum seeking is one of the least-protected immigration statuses in the U.S. Asylum seekers, who’ve fled their home countries fearing persecution and are asking the U.S. for protection, differ from refugees, whose status is granted before they enter the country. Asylum seekers apply upon arriving in the U.S.

Applicants can stay as their cases remain pending for years, though experts say the Trump administration is expediting deportations for numerous asylum seekers and ending cases before they can receive a full hearing.

As of February 2026, a little over 2.3 million immigrants are awaiting asylum hearings nationwide, according to Syracuse University’s Transactional Records Access Clearinghouse, which tracks federal activity. The most recent data shows California alone had about 169,000 pending asylum cases in its immigration courts by the end of 2023 — the second-largest backlog of any state. The average wait for an asylum hearing in California was 1,412 days at that time.

The Trump administration paused asylum cases in November, creating even further delays. The administration has now allowed cases to resume for applicants from all but 40 countries. In the San Francisco immigration court system, which is popular among asylum seekers due to higher acceptance rates, a combination of firings by the Trump administration, retirements and relocations whittled the 21 immigration judges to two, according to reporting in Mission Local. Left behind is a caseload of nearly 119,000 immigration cases, the highest of any immigration court in California.

President Trump’s “Big Beautiful Bill” also established new fees for asylum seekers, placing additional pressure on an already low-income population. Applicants must now pay an initial $100 application fee plus $100 per year while their case is pending, $550 for a work permit, and $745 each year to renew the permit. In addition, a new rule proposed by the Department of Homeland Security would effectively end the ability of asylum seekers to obtain work permits at all.

Royce Hall on the UCLA campus

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As they await a decision, asylum seekers are excluded from federal aid and some state financial aid programs, including Cal Grants under California law.

For one asylum seeker, Carol, being ineligible for financial aid meant she had to take time off from school to work to make ends meet. CalMatters is not using her full name because she fears speaking publicly may jeopardize her asylum case.

Carol did speak before the Assembly Higher Education Committee in 2023 urging lawmakers to pass AB 888, which would have expanded Cal Grant eligibility to certain asylum seekers. The bill ultimately did not pass.

She said she arrived in the United States at 17 and had spent more than six years waiting for her case to move through immigration courts, a period during which she said she was ineligible for financial aid.

“I’ve had to delay my educational journey several times, including going part-time and even taking a semester off from school to work,” Carol told lawmakers.

Without access to aid, she said she experienced homelessness, couch surfing and at one point slept on a mattress topper on a hardwood floor because she could not afford a bed. She worked multiple jobs at a time, skipped meals and attended class without the required course materials.

Her story, she said, was not new. Carol told the committee that four years earlier her brother had testified with a nearly identical experience on behalf of a previous bill that was ultimately vetoed, a cycle she argued could have been prevented.

“Had California taken action then, I wouldn’t have had to face the harrowing experiences that I shared with you today,” she said.

Despite the barriers, Carol graduated from Cal State Long Beach and worked as a caseworker with the International Rescue Committee, helping resettle refugees and asylum seekers. She told lawmakers she hopes to pursue a law degree and become an international human rights attorney.

The narrow path to college aid for asylum-seeking students

Many asylum seekers arrive eager to continue studies they began abroad, but quickly run into what Cline calls “a brick wall."

“All of our clients are low-income … they’re almost never eligible for generalized financial aid,” he said. “When you take away the financial aid aspect, it makes (college) pretty inaccessible.”

For California residents, annual undergraduate tuition is $15,588 at the University of California, $6,838 at the California State University and about $1,380 for 30 units at a community college. Students classified as non-residents — including some asylum seekers before establishing residency — can pay $54,858 at a University of California, about $20,968 at a Cal State before campus-based fees, and roughly $10,140 to $13,560 for 30 units at a community college, depending on the district. These figures do not include campus-based fees, housing or living expenses.

Even when students do manage to establish residency, the cost is still steep. For the many asylum seekers who arrive in the United States as adults, they may not have attended a California school previously, barring them from qualifying for state financial aid.

AB 540, the 2001 law that exempts undocumented students from paying non-resident tuition, only applies if the student attended a California high school or community college for three years.

Those who qualify through AB 540 can fill out the California Dream Act Application for state financial aid, such as Cal Grants, university system-specific grants, state loans, and the state’s middle class scholarship.

The application process can still be confusing for asylum seekers whose status is not fully accounted for in the design of the application. For example, asylum seekers often have Social Security numbers for work authorization, but affirming so while answering the financial aid pre-screening questions leads to undetermined eligibility because the questions don’t take into account the nuances of applying as an asylum seeker.

Stickers and flyers on a table in the Undocumented Community Center at the College of San Mateo in San Mateo, on Nov. 28, 2023. At this center, undocumented students can access financial and legal aid as well as guidance in navigating grant applications.

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Asylum seekers often require extra help from financial aid counselors, but even counselors may not know how to help navigate eligibility rules. Students often wind up seeking help from undocumented student resource centers on public campuses, which are designed to help students who lack legal residency and those from mixed-status families find aid and academic support.

Kaveena Singh, the director of immigration legal services at the East Bay Sanctuary Covenant, which provides legal services to low-income immigrants, noted that she herself has written letters to financial aid offices to help explain the in-between nature of the few asylum-seeking students she has served.

As an asylum-seeking student in his mid-20s, L. ended up qualifying for state financial aid through AB 540. However, he misunderstood for six years exactly what aid he qualified for. L. wished to withhold his name and the names of the institutions he’s attended for fear of negative impacts on his pending asylum case.

Initially, community college didn’t cost him anything — but when he transferred to a large four-year university, the cost of college soared. He went to his university's financial aid office for help so often that all the staff there knew his name. It was a "big relief” when he was finally able to successfully fill out the California Dream Act Application, and obtain financial aid for his summer and fall quarters.

L.'s asylum case has been pending for nine years. He, his dad, mom and younger brother arrived in the United States in the winter of 2016, claiming asylum under fear of political retribution. His father organized political assemblies in China, and his mother was forced to have an abortion under the one-child policy.

“I just wish I could go home and visit family and friends and catch up for a good few weeks in the summer here and there to reconnect with my past,” L. said. “It's like there's two separate lives, like two entities being artificially cut.”

L. worked throughout high school and college, and worried about affording school.

Most days, the combination of family trauma and the limbo of waiting for his case means L. survives through “constant compartmentalization.”

In the meantime, he tries to carry on — he studies politics, and is interested in international relations and human rights.

"As rough as all that's happened, the silver lining is that one day hopefully I get a passport and a green card," L. said. "To help other people avoid such a hassle will be just as fulfilling for me."

Previous legislative efforts have failed

Legislative bills to extend state financial aid eligibility to asylum-seeking students have been introduced at least twice in recent years but have failed.

One attempt came in 2019, when Sen. Ben Allen, a Democrat from El Segundo, introduced SB 296, a bill that would have extended Cal Grant eligibility to students with pending asylum applications. The measure passed the Legislature with some bipartisan support, but was vetoed by Gov. Gavin Newsom, who said that it would "impose costs on the General Fund that must be weighed in the annual budget process."

“That was frustrating, but I understood it,” Allen told CalMatters. “The real issue is that we don’t have good data. Our schools don’t track asylum seekers, so we can’t easily calculate the cost.”

UC data on asylum-seeking students is protected due to privacy policies, according to Stett Holbrook, a UC spokesperson. The Cal State system reports it has less than 500 students with "asylum status," which includes both those who have an asylum granted and asylum seekers, according to Cal State spokesperson Amy Bentley-Smith. The numbers are self-reported during the admissions process.

In spring 2025, 13,507 students self-identified as “refugee/asylee” across the California Community Colleges — up from 11,537 the prior semester — per the CCC DataMart. The data does not include a category for just asylum seekers. Students can self-identify their immigration status while applying, but asylum seekers are not specifically tracked, according to the college system’s spokesperson Melissa Villarin.

Four years after SB 296 failed, Democrat Sabrina Cervantes — then representing Riverside in the Assembly and now as a state senator — revived the proposal through AB 888, introduced in 2023. Like Allen’s earlier bill, AB 888 sought to make Cal Grants accessible to students with pending asylum applications by creating a direct eligibility pathway outside the AB 540 residency requirements. The bill passed the Assembly unanimously but was held in the Senate Appropriations Committee last September, effectively ending its chances for the year.

Cervantes declined an interview with CalMatters. “My Assembly Bill 888 would have created a new pathway for pending asylum seekers in California to apply for Cal Grant financial aid in pursuit of their higher education,” Cervantes wrote in a statement.

Newsom’s office declined to say whether he would support a future version of the proposal, pointing instead to his brief 2019 veto message.

“There’s nervousness around anything that involves new expenses," Allen said. “... We’re going to have to spend some time seeing what information we can get with regards to better data to get better estimated costs. I think that will help to better inform the conversation."

Andrea Baltodano and Chrissa Olson are contributors with the College Journalism Network, a collaboration between CalMatters and student journalists from across California. CalMatters higher education coverage is supported by a grant from the College Futures Foundation.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.