Skip to content
ProPublica Donate
ProPublica Donate
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
Caret

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.

What We’re Watching

During Donald Trump’s second presidency, ProPublica will focus on the areas most in need of scrutiny. Here are some of the issues our reporters will be watching — and how to get in touch with them securely.

Learn more about our reporting team. We will continue to share our areas of interest as the news develops.

Photo of Sharon Lerner
Sharon Lerner

I cover health and the environment and the agencies that govern them, including the Environmental Protection Agency.

Photo of Andy Kroll
Andy Kroll

I cover justice and the rule of law, including the Justice Department, U.S. attorneys and the courts.

Photo of Melissa Sanchez
Melissa Sanchez

I report on immigration and labor, and I am based in Chicago.

Photo of Jesse Coburn
Jesse Coburn

I cover housing and transportation, including the companies working in those fields and the regulators overseeing them.

If you don’t have a specific tip or story in mind, we could still use your help. Sign up to be a member of our federal worker source network to stay in touch.

Most Read

    The Texas Flash Flood Is a Preview of the Chaos to Come

    Climate change is making disasters more common, more deadly and far more costly, even as the federal government is running away from the policies that might begin to protect the nation.

    Some Texas Officials Didn’t Respond to Flood Alerts, Echoing the Tragedies of Hurricane Helene

    Weather warnings predicted devastation from both the Texas floods and Hurricane Helene. But in both disasters, people were left in harm’s way.

    George Mason Is the Latest University Under Fire From Trump. Its President Fears an “Orchestrated” Campaign.

    When university president Gregory Washington received notice that the Trump administration had opened an investigation into complaints of antisemitism, he was “perplexed.” But there are signs it may be part of a coordinated campaign to oust him.

    Texas Overhauls Anti-Abortion Program That Spent Tens of Millions of Taxpayer Dollars With Little Oversight

    After a ProPublica and CBS News investigation revealed that Texas’ funding pipeline for anti-abortion crisis pregnancy centers is riddled with waste, nonprofits in the program must now provide a detailed accounting of their expenses.

    Uncovered

    “Slow Pay, Low Pay or No Pay”

    Blue Cross authorized mastectomies and breast reconstructions for women with cancer but refused to pay the full doctors’ bills. A jury called it fraud and awarded the practice $421 million.