California community colleges reported a sharp reduction in financial aid theft from ghost students after escalating verification efforts. CalMatters data shows ghost students stole nearly $5.6 million in federal student aid and more than $900,000 in state aid between January and March 2025. By spring, colleges lost about $1.5 million in federal aid and about $330,000 in state aid, a significant decline attributed to tighter controls. The system has faced federal and state pressure for years, including calls for a federal investigation and a state audit. The chancellor’s office launched a new ID verification policy for applicants, initially optional but scheduled to become mandatory in July, with about half of applicants having already gone through the process as of the report.