The Education Department is looking into a legal tactic, which has been used in the Chicago area, where wealthy parents transfer guardianship of a child to someone else to qualify for financial aid.
“The strategy caught the department’s attention amid a spate of guardianship transfers here. It means that only the children’s earnings were considered in their financial-aid applications, not the family income or savings. That has led to awards of scholarships and access to federal financial aid designed for the poor,” the Wall Street Journal reported.
Campos-Duffy, whose daughter is getting set to attend the University of Chicago in the fall, doubted that the ultra-rich will use this loophole, arguing it’s likely families who cannot pay the “crazy” cost of tuition.
“It’s people in the middle, it’s people who are trying to get ahead,” she said, adding that she has heard stories of couples divorcing in order to qualify for more financial aid for their children.