Another College Scandal?! Rich Parents Are Giving Up Guardianship Of Their Children For Access To Financial Aid

If you thought the “Operation: Varsity Blues” college admission scandal was bad, get ready for this.

A ProPublica Illinois investigation found wealthy parents are giving the legal guardianship of their child during their junior or senior year of high school to someone else, which allows the students to declare themselves financially independent as a way to qualify for additional federal, state, and university financial aid.

Andy Borst, director of undergraduate admissions at the University of Illinois at Urbana-Champaign shared with the publication (below):

“It’s a scam. Wealthy families are manipulating the financial aid process to be eligible for financial aid they would not be otherwise eligible for. They are taking away opportunities from families that really need it.”

The ProPublica investigation revealed this legal loophole practice in north suburban Lake County, Illinois, where four dozen of these guardianships were filed in the past 18 months, with similar court petitions filed in five surrounding counties. While ProPublica is still investigating, it is believed this practice could be happening nationwide.

Borst shared he became suspicious when a counselor from an affluent Chicago suburb’s high school called to ask why a student had been invited to a low-income orientation program. Upon investigation, Borst saw on her file she had obtained a legal guardian.

Since the first incident, the university has identified three students who just completed their freshman year, along with 11 who are set to enroll in the fall in similar situations.

After this discovery, Borst said the university told the three current students their university-based financial aid would be reduced, and their response was surprising:

“We didn’t hear any complaint, and that is also a big red flag. If they were needy, they would have come in to talk with us.”

But it’s not just happening on Urbana-Champaign’s campus. The investigation has found over 40 similar guardianship cases filed from January 2018 to June 2019, all from the same Lake County suburb alone, with students accepted to a range of universities including the University of Wisconsin, the University of Missouri, Indiana University, and more.

Of the children involved, many of them are scholars, athletes, and musicians, with their parents’ careers ranging from lawyers to doctors.

“It’s not like these families are close or on the tipping point,” of being eligible for aid, Borst said. He continued:

“I don’t know how big this is, but I hope we can nip this in the bud now. … If it is legal, at what point is it wrong?”

In light of this investigation, Borst says the university will now seek additional information from students who have recently entered into a guardianship, including “whether they have contact with their parents, who they live with and who pays for their health insurance and cellphone bill,” ProPublica writes. After being asked these questions, some families have been deterred from seeking additional aid.

According to court documents, many cite educational resources as the reasoning behind why the guardianship is being petitioned, writing:

“The Guardian can provide educational and financial support and opportunities to the minor that her parents could not otherwise provide.”

Hmmm….

So just how much money are these families receiving? The university is obligated to distribute state and federal grants to students in need which can total approximately $11,000 annually, in addition to institutional aid which the university has discretion over distributing.

What does it say about the current state of financial aid that parents are literally willing to sign away the rights to their children to get them money?!

How does this legal loophole make U feel, Perezcious readers? Sound OFF (below) with all your thoughts on this new investigation in the comments.

[Image via FayesVision/WENN & University of Illinois/YouTube.]