If you get a Pell grant or other “non-traditional” financial aid packages, there’s a bit for associated costs. It’s not huge money, but if you do this scheme across many schools…

The scammers enroll and even submit AI generated homework for 3 weeks until the excess aid funds are distributed to they're fake checking accounts.

I'm sure they apply for the maximum amount which are supposed to be used on school related expenses, etc.

Financial aid is sent directly to the college. However, if you have a positive balance in your account (financial aid, grants, scholarships, or loans more than tuition and fees) you can request the bursar deposit that balance into your bank account. This is how I paid for living expenses in the years I lived off campus.

It does afaik so I'm confused what the monetary scam is. Community College in California is cheap or free for most students so I feel like something is being left out of the explanation.