News Roundup: Wealthy Families May Transfer Guardianship to Game Financial Aid System
News broke on Monday night that some wealthy families may be transferring guardianship of their children to friends or relatives so that those students may be eligible for need-based financial aid. "They are gaming the system, whether it is legal or not doesn’t make it any less unsavory," NASFAA President Justin Draeger told The Wall Street Journal. NASFAA spoke with several news media outlets to provide perspective on the issue, and below gathered a roundup of news, reactions, and insights.
- College Financial-Aid Loophole: Wealthy Parents Transfer Guardianship of Their Teens to Get Aid (The Wall Street Journal)
- Video Clip: Are Wealthy Parents Giving Up Guardianship So Their Kids Can Claim Financial Aid? (Good Morning America)
- A New Scandal Shows Some US Parents Taking Extreme Measures to Avoid College Costs (Quartz)
- Loophole Allows Families to Get Aid Meant for Needy Students (The Associated Press)
- Here's the 'Unsavory,' Legal Way Rich Illinois Teens Are Getting College Aid (New York Post)
- Loophole Allows Rich Families to Get Federal Aid Meant for Poor Students, Reports Say (Fox News)
- 'Gaming the System': Wealthy Parents Transferring Custody of Kids to Poorer Relatives to Get College Aid (Washington Examiner)
- What About Fairness? (Inside Higher Ed)
- Amid Reports of Parents Transferring Custody of Their Children to Get Financial Aid, Education Department Recommends Steps to Prevent Fraud (The Washington Post)
- Another College Admissions Scandal? To Get Financial Aid, Parents Lose Custody of Children (USA Today)
- A Fresh Abuse Rattles College Admissions: Parents Give Up Custody of Their Children So They Can Get Student Aid (The Chronicle of Higher Education)
- Video Clip: College Financial Loophole Exposed (WFTS-TV)
Publication Date: 7/31/2019
