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Education

Financial Aid Loophole

Giving Up Guardianship to Get Aid

Some Illinois parents have been exploiting a legal loophole to win their children need-based college financial aid and scholarships they would not otherwise receive. First, parents turn over guardianship of their teenagers to a friend or relative. Then the student declares financial independence to qualify for tuition aid and scholarships.

Are you a parent, student, school administrator or someone else who has seen this in action? We’d love to hear from you.

Impact of Our Reporting
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Financial Aid Loophole

At Hearing on Financial Aid Scandal, Lawmakers Grill Officials and Look to Close a Loophole

Illinois politicians considered denying admission to students whose families exploited the guardianship law to qualify for aid they wouldn’t otherwise receive, saying it was an “injustice.”

Financial Aid Loophole

El Departamento de Educación federal quiere frenar la “trama fraudulenta de ayuda estudiantil” en que padres ceden la custodia a través de tutelas dudosas

Un día después de nuestro reportaje, el inspector general del departamento dice que quiere cerrar los agujeros legales de ayuda financiera.

Financial Aid Loophole

Illinois Lawmakers Call Hearing to “Demand Answers” and Find Ways to Close a Loophole in College Financial Aid Scandal

Legislators said parents who turn over guardianship of their children to get financial aid engaged in a “manipulative practice.” They’re exploring whether they can subpoena parents to testify.

Financial Aid Loophole

U.S. Department of Education Wants to Stop “Student Aid Fraud Scheme” Where Parents Give Up Custody Through Dubious Guardianships

One day after our reporting, the department’s inspector general said it wants to close financial aid loopholes.