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

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: 2) by JoeMerchant on Wednesday July 31 2019, @02:16AM (2 children)

    by JoeMerchant (3937) on Wednesday July 31 2019, @02:16AM (#873385)

    But, Germany has some occasional sense of fiscal responsibility, a net positive trade imbalance, and they make actual stuff that other countries actually want.

    Anytime since WWII the US has gotten anywhere close to a balanced budget the "tax cuts for the rich" come crawling out of the closet to ensure that we stay in deep debt so we "cannot afford" more social programs - social programs which often pay back their costs more than 100% in reduced expenses down the road...

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  • (Score: 2) by c0lo on Wednesday July 31 2019, @02:37AM (1 child)

    by c0lo (156) Subscriber Badge on Wednesday July 31 2019, @02:37AM (#873390) Journal

    Anytime since WWII the US has gotten anywhere close to a balanced budget the "tax cuts for the rich" come crawling out of the closet ...

    True.
    Just don't blame Germany (and many other countries) for showing that a better welfare state can actually work for the society even it it is suboptimal for the plutocracy's interests, and in contradiction to the plutocracy's propaganda (grin)

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    • (Score: 2) by JoeMerchant on Wednesday July 31 2019, @11:53AM

      by JoeMerchant (3937) on Wednesday July 31 2019, @11:53AM (#873490)

      Germany's plutocrats are pussies, anyone with real power got out after WWII.

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