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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: 1, Informative) by Anonymous Coward on Tuesday July 30 2019, @11:17PM
Funny. I work in health care and have lots of friends and family who do, too.
Your post shows that you don't understand modern medicine, and although many of the things you say are not outright false, your conclusions are wrong.
> whatever help is available
You say this like it's a bad thing.
Just like in the USA if the night shift doc is napping and the nurse gets there first, or if the cardiac specialist is at the other end of the hospital when a patient comes in, the patient gets the help that's available, not the in theory best specialist that would have to be flown in from Toronto.
> whenever that help becomes available
Do you want it before it's available?
> whether or not that help is the medically best decision
Here, you lie. Patients have autonomy and can reject any treatment so long as they're of sound mind. And the kernel of truth here - that medically not-best decisions sometimes get made - is inherent in any imperfect knowledge scenario. No diagnostician has perfect results, and no physician has read every single paper, and mistakes are human.
> depending on how the budget is going
Uuuuuuuh. No? Public health programmes which are mostly outreach, this might apply, but not patient care. This is just bullshit.
> Canadian health care is quite heavily undersupplied with resources
Uuuuuh. No? I've been to other countries too and Canadian healthcare is just about top of the line. Another poster talked about the "billing office" in USA clinics. By not having those, alone, we save a huge amount of overhead (I've seen estimates varying from 10 to 25% of overhead - billing and followup-accounting and debt-chasing are *expensive*).
> This is why there's an active medical tourism industry, largely serving canadians, just south of the US/Canada border.
Uuuuuuuuuh. No? The medical tourism industry for Canadians is overwhelmingly for cosmetic surgery, since we don't cover it and there's fewer practitioners here. Occasionally for other stuff like fertility. Where do you get this bullshit from? Canadians never, EVER cross the border for medical care if there's local services. Why would we? Our local quality of care is superior and we would have to pay tens of thousands of dollars to go to the USA.
Who voted you up? Your post is so incredibly bullshit-heavy that you could get into the fertilizer business...