"Illinois House lawmakers took a first look last week at potential responses to a scandal that’s unfolded over affluent families’ efforts to game the student financial aid system," Inside Higher Ed reports. 

"Outraged lawmakers called a joint hearing of two higher education committees after ProPublica Illinois and The Wall Street Journal reported that dozens of affluent families in the Chicago suburbs had given up legal guardianship of their children so that they could be declared financially independent and qualify for more aid money.

College officials pressed by lawmakers recommended that the legislature could give them more discretion to block state need-based grant aid when students improperly pursue legal guardianship. Some lawmakers, though, sounded unsure about taking that step. They also suggested that the Legislature re-evaluate legal guardianship laws and consider regulating independent college consultants.

And officials at national financial aid and student access groups cautioned in interviews against responses that could have unintended consequences for low-income students.

'I’m absolutely aware that we could have an overreaction to what is an egregious but localized issue that would negatively impact all legal guardianships, including legitimate ones,' said Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators.

The reporting on the issue suggested roughly four dozen families had given up legal guardianship of their children shortly before they turned 18. That’s an exceedingly small number compared to the total number of financial aid applicants each year. And there’s little evidence so far that other institutions in the state have had similar cases.

But the stories came out as members of the public have become highly aware of efforts by rich families to cheat the system in the wake of a massive admissions scandal this year involving elite colleges."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 8/12/2019