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College Financial-Aid Loophole: Wealthy Parents Transfer Guardianship of Their Teens to Get Aid

posted by Fnord666 on Tuesday July 30 2019, @11:39AM   Printer-friendly

upstart writes:

Submitted via IRC for Bytram

College Financial-Aid Loophole: Wealthy Parents Transfer Guardianship of Their Teens to Get Aid

Amid an intense national furor over the fairness of college admissions, the Education Department is looking into a tactic that has been used in some suburbs here, in which wealthy parents transfer legal guardianship of their college-bound children to relatives or friends so the teens can claim financial aid, say people familiar with the matter.

The strategy caught the department's attention amid a spate of guardianship transfers here. It means that only the children's earnings were considered in their financial-aid applications, not the family income or savings. That has led to awards of scholarships and access to federal financial aid designed for the poor, these people said.

Several universities in Illinois say they are looking into the practice, which is legal. "Our financial-aid resources are limited and the practice of wealthy parents transferring the guardianship of their children to qualify for need-based financial aid—or so-called opportunity hoarding—takes away resources from middle- and low-income students," said Andrew Borst, director of undergraduate enrollment at the University of Illinois. "This is legal, but we question the ethics."

Also At:
https://www.propublica.org/article/university-of-illinois-financial-aid-fafsa-parents-guardianship-children-students
https://chicago.suntimes.com/2019/7/29/20746376/u-of-i-parents-giving-up-custody-kids-get-need-based-college-financial-aid-university-illinois

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  • (Score: 5, Insightful) by Anonymous Coward on Tuesday July 30 2019, @12:00PM (4 children)

    by Anonymous Coward on Tuesday July 30 2019, @12:00PM (#873055)

    Cows you all are. Moo cows moo. Wealth comes from "hard work?" Yeah fucking right. You temporarily embarrassed millionaire cows!

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  • (Score: 0) by Anonymous Coward on Tuesday July 30 2019, @04:04PM

    by Anonymous Coward on Tuesday July 30 2019, @04:04PM (#873141)

    Yup, this thread is mostly depressing.

  • (Score: 2, Interesting) by Anonymous Coward on Tuesday July 30 2019, @06:43PM (1 child)

    by Anonymous Coward on Tuesday July 30 2019, @06:43PM (#873225)

    To be accurate, there WAS science, engineering, and expertise, but it had to neatly align with the Party Line.

    This should be taken as a warning sign by all intellectuals and everyone with a love of knowledge. When the political animal becomes so arrogant, they're deluded into thinking they can dictate reality, instead of being subject to it, society has wandered into a very dangerous kind of epistemic breakdown.

    https://en.wikipedia.org/wiki/Lysenkoism [wikipedia.org]

    Look for this in particular, when politics has become "single party" and there is absolutely no room for dissent. Look out for mechanisms and practices of suppressing and intimidating dissent which do not have due process, or which are corruptions of due process mechanisms.

    Look out for the situation where you or someone must "hold their tongue." If you must hold your tongue, you are being suppressed by people with unchecked power approaching the epistemic breakdown. If you feel others should "hold their tongue," especially if you despise them, then you are in danger of approaching the epistemic breakdown.

    http://brucefwebster.com/2008/04/15/the-wetware-crisis-the-t... [brucefwebster.com]

    http://www.paulgraham.com/say.html [paulgraham.com]

    • (Score: 0, Interesting) by Anonymous Coward on Tuesday July 30 2019, @11:32PM

      by Anonymous Coward on Tuesday July 30 2019, @11:32PM (#873324)

      Consider the source and/or study the Left Opposition.

  • (Score: 0) by Anonymous Coward on Monday August 05 2019, @02:12PM

    by Anonymous Coward on Monday August 05 2019, @02:12PM (#875955)

    wealth comes from hard work in combination with frugal living

    great wealth also requires luck