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.

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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.”

Parents Are Giving Up Custody of Their Kids to Get Need-Based College Financial Aid

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.

Other Entries

Parents Gave Up Custody of Their Children to Help Them Get Financial Aid. Now, Some Are Abandoning That Idea.

Some families are frustrated about a public backlash, saying what they did was legal. They say the real problem is the cost of higher education.

Inside the Illinois House Hearing on the Financial Aid Scandal

Lawmakers described the practice as disturbing, disheartening and shocking.

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.

How We Got the Story About Parents Transferring Guardianship of Their Kids to Win Financial Aid They Wouldn’t Otherwise Qualify For

A tip, and then lots of work — including looking through nearly 2,000 files — over a very short period of time.

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.

Padres Ceden La Custodia de Sus Hijos para Conseguir Becas Universitarias Basadas en Necesidad Económica

Primero, los padres transfieren la tutela de sus hijos adolescentes a un amigo o pariente. Después, el estudiante declara independencia financiera para calificar para ayudas monetarias y becas.

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.

Illinois Parents Are Helping Their Children Get College Financial Aid They Wouldn’t Otherwise Qualify For. Help Us Figure Out How They Do It.

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

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