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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
(Score: 0) by Anonymous Coward on Tuesday July 30 2019, @04:18PM (5 children)
You re-read it, honey.
I just did, and still don't see any mention of deception.
(Score: 2) by Gaaark on Tuesday July 30 2019, @07:35PM (4 children)
So if I legally transfer ownership of my gun to you and help you aim the gun and pull the trigger, I am not responsible?
So if I legally transfer ownership of my kids to you, tell you what college to send them to and pay you money to help support them (you know the 'guardian' isn't going to do this out of the goodness of their heart), I am not responsible?
It is fraud/theft/cheat. Clearly.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
(Score: 0) by Anonymous Coward on Wednesday July 31 2019, @02:10AM
I think that a lot of My Fellow Americans™ are no longer living in reality at this point.
I'm sorry. plz can has refugee status?
(Score: 0) by Anonymous Coward on Wednesday July 31 2019, @09:53PM (2 children)
>It is fraud/theft/cheat. Clearly.
See I don't like it but the fact you think this is fraud and not the rich doing what they always do... usually completely legally. Shows you know nothing.
Every rule, regulation, qualification out there is simply a hurdle to these people. Figure out how to get around it, hire someone else to figure it out if you have to, and succeed. This is normal
If you are angry it's a little too late for that. Worse things are happening every single day. If you're not a boomer you're acting like one.
(Score: 2) by Gaaark on Wednesday July 31 2019, @11:06PM (1 child)
I realize that.
It IS cheating, though, and people need to wake up to it.
I liked hearing Warren bring up stopping corruption in the debate: people needed to hear that.
It needs to STOP being normal. It's NOT too late.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
(Score: -1, Troll) by Anonymous Coward on Monday August 05 2019, @02:35PM
Using the rules of the system as defined is cheating? really?
I always thought that cheating involved breaking the rules.