At what point do morals and ethics take precedence over loopholes of the law?
According to the latest financial aide scheme, no time soon.
It has recently been discovered that several wealthier suburban families have been giving up their children for financial aide!
Yes, you read that correctly. Several physicians, real estate agents and lawyers are signing over guardianship of their children. They’re signing the children over toward the end of the junior/senior year of high school to lower income guardians.
Why would anyone do this? Financial aide fraud of course!
When these children are legally separated from their parents they are able to claim financial independence & become eligible for up to $11,000 in Pell/MAP grants.
The problem is, 5,000 eligible students did not receive financial assistance due to depleted funding.
Is it really fair that the one person found a loophole in the guardianship law and now dozens of eligible citizens will not be able to attend college due to financial deficits?
These are people who should be well off and educated enough to know the expenses of higher education. Instead of being honest responsible adults they found a way to scheme the system into paying for something that they are likely capable of doing themselves.
Here are the facts:
When cases were brought against these families, the majority were represented by Rogers Law Group in Deerfield. A firm who specializes in real estate.
Coincidence? Probably not.
Representation is stating that the guardianship request is made in the best interest of the child. This is said to be due to the better financial and educational opportunities that the guardian can provide.
One of these guardians came forward in exchange for anonymity and stated the child in which they had guardianship never actually lived in the home.
Colleges and Universities do have the right to revoke any financial aide if evidence is presented showing the student receives parental assistance.
Is providing housing, food and utilities not parental assistance? A lot of it at that!
With the information being brought to light, I had to ask myself “ Is there much of a difference between this scandal and the Lori Laughlin incident.” Giving up guardianship for Financial Aide and paying for a child’s acceptance into a college… I mean hey, fraud is fraud.
As more of the story unfolds we come to discover these families are also tied to Destination College. You may have heard the slogan “College financial planning, using income asset shifting strategies to increase financial and merit aide, all while lowering out of pocket expenses.
Of course when questioned about the matters the representative was busy and immediately contacted legal representation. Zisook, the attorney, stated her client avoided the situation because she did not want to be depicted in a false light.
Case mananger Rashidfarokhi spoke out commenting that guardianship cases are normally brought about in abusive situations, homelessness and mental instability. The extreme measures taken by these parents is inconsiderate of not only the students who need assistance, but also the time of judges who have real cases that need to be tried.
Both judges and colleges have been cracking down on these situations in hopes of putting an end to this. There are several colleges in the MidWest who have also committed to flagging accounts that fit this profile for further investigation.
As always this is our blog so I want to know what you think!
Is it ok to utilize this loophole into financial aid or is it an unethical and classless attempt to defraud?
Comment Below and Don’t Forget to subscribe to stay in tune with the latest stories and products