some wealthy parents used the strategy to gain tens of thousands of dollars in need-based aid.
Dozens of wealthy families in Illinois have reportedly been using a controversial tactic to help their children pay for college: They give up legal guardianship so the teenagers can claim dramatically lower incomes and earn need-based financial aid,
wealthy parents allegedly file paperwork to transfer legal custody of their kids to other relatives, friends or even co-workers.
When the transfers are complete — often during their junior or senior years of high school — students are then able to declare themselves financially independent on college applications.
In one instance detailed by the Journal,
a student whose parents owned a $1.2 million home only had to declare $4,200 in income from a summer job.
That student was
able to obtain about $47,000 in scholarships and federal Pell grants
to attend a private university that costs $65,000 per year.
The practice is legal,
the Education Departmentis looking into the matter.
https://www.huffpost.com/entry/illinois-college-scholarships_n_5d3f9dbee4b01d8c97806393?ncid=newsl tushpmgnews__TheMorningEmail__073019
Will the cheaters be named and shamed?
Just another example how the wealthy have gamed the system and cheat using expensive legal advice.
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