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Wealthy Parents in Illinois Exploit Loophole to Earn Financial Aid and Scholarships

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  • Reports by the Wall Street Journal and ProPublica show that affluent parents in Illinois are transferring the guardianship of their children to friends and family in an effort to save on college tuition.
  • By transferring legal custody, the child can identify themselves as financially independent from their families on financial aid applications, resulting in more aid money.
  • This practice is legal, however, school officials are calling the practice unethical, and the Education Department is looking into the matter.

Illinois Families Game Financial Aid

Recent reports show that affluent parents in Illinois are transferring the guardianship of their children to friends and other relatives so that their children will be awarded more financial aid money when applying for college.

According to both ProPublica and the Wall Street Journal, at some point during their child’s junior or senior year of high school, families will legally give custody of their child to a friend or family member. This allows their child to identify themselves as financially independent from their families when they apply for financial aid and college scholarships and can result in the student receiving more money.

The Journal spoke to one Chicago-area family that used this practice, which is legal. The family they spoke to makes over $250,000 in annual income and live in a house valued at over $1 million. The mother claimed that they had already spent over $600,000 on college tuition on older kids.

After their daughter’s guardianship was transferred, the only income she had to claim was a little over $4,000, which she earned from a summer job. She ended up attending a private school with a tuition of $65,000, and got $27,000 in merit scholarships and $20,000 in need-based aid.

The family told the Journal that the process of transferring guardianship pretty easy and mainly just involved paperwork. The co-worker taking custody had to attend one court hearing, but the daughter did not have to go, and neither did her parents.

Logistics and Potential Consequences of the Process

Even though this practice is legal, colleges in Illinois are concerned about its use and question the morality behind it. But still, several schools in Illinois are starting to take a closer look at the situation.

Andrew Borst, the director of undergraduate enrollment at the University of Illinois told the Journal it could take opportunities away from students who actually come from low-income families.

“Our financial-aid resources are limited and the practice of wealthy parents transferring the guardianship of their children to qualify for need-based financial aid—or so-called opportunity hoarding—takes away resources from middle- and low-income students,” he said. “This is legal, but we question the ethics.”

The Journal looked at court documents and found 38 cases where juniors or seniors in high school had their guardianship transferred. Many of those families lived in homes valued over half a million dollars.

In Illinois, even if a parent can provide care to a child, a court can still transfer guardianship so long as the parents relinquish care, the child and the new guardian consent, and a court finds that it is in the child’s best interest. In most of the 38 cases, the language used to justify why it is in the child’s best interest usually resembled, “The guardian can provide educational and financial support and opportunities to the minor that her parents could not otherwise provide.”

ProPublica spoke to someone who became a child’s legal guardian for this reason. He said he wrestled with the ethics of the matter, because his wife works at a college, so he saw the situation from both sides. They were afraid that by doing this, they could take aid away from another family, even though he was told this would not be the case.

“It’s one of these gray areas, and my heart wanted me to do it for the family,” he said to ProPublica. “But I also have a conscience. I wanted to make sure we were doing the right thing.”

Consulting Firm Behind the Practice

So, how did these families manage to do this? Both the Journal and ProPublica say that many followed a path created by a consulting firm called Destination College. The group is based in Chicago and says it works to make college more affordable for families and their children.

“Our team of tax, financial and academic planning experts specializes in creating a customized guide, making sure the students are matched to the major and school of their interests, and the parents can comfortably afford it,” Destination College’s website says.

The firm claims to save students an average of $30,000 a year on college. Nowhere on the site does it directly suggest that families transfer the guardianship of their child, but there is language that could be hinting at the practice.

Destination College offers three packages: Basic, Preferred, and Premier. One of the features in the Premier package is: “College Financial Plan, Using Income and Asset Shifting Strategies to Increase Your Financial and Merit Aid and Lower Out of Pocket Tuition Expenses.”

Lora Georgieva, the founder of Destination College, has denied giving comments to both outlets.

According to the Journal, the Education Department is reportedly looking into this practice. It is currently unclear whether or not this is happening in any states outside of Illinois. However, other schools in the midwest have been alerted about the practice, and some have said they will keep an eye out for evidence of its occurrence.

In order to prevent this from happening in the future, some have recommended amending language in the Federal Student Aid handbook.

One suggestion given to the Journal read, “If a student enters into a legal guardianship, but continues to receive medical and financial support from their parents, they do not meet the definition of a legal guardianship and are still considered a dependent student.”

See what others are saying: (Wall Street Journal) (ProPublica) (HuffPost)

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Conservatives are Mad at “Woke” Xbox for Minor Climate-Related Updates

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The fury comes after Xbox announced it was slightly altering existing consoles to better utilize and save energy.


Same War, New Battlefield

Mere days after M&M canceled their “spokescandies” due to backlash from the right, led largely by Fox News’ Tucker Carlson, conservatives have found a new front for their ongoing culture war: Xbox.

Carlson spent months complaining that small character redesigns were “woke” because they made the animated anthropomorphized M&M’s — in his own words — “less sexy.” His campaign finally proved successful on Monday when the company announced it would be doing away with the spokescandies and replacing them with actress Maya Rudolph.

Conservatives, now facing a sudden dearth of non-issues to complain about, quickly found a new issue to rage against. Xbox announced in a blog post earlier this month that it is making minor updates to lower its environmental impact as part of an effort to reach Microsoft’s goal of being carbon-negative by 2030.

Now, instead of having an Xbox wake up to update games, apps, and software during random times of the night, it will do that at a time of night when a user’s local energy grid is generating the most power it can from renewable sources. 

Xbox also said it would automatically update some older consoles to a power-saving mode that aims to reduce electricity consumption when it is turned off — a feature that is already the default on newer consoles.

According to The Verge, the only difference for users is that an Xbox in power-saving mode takes around 15 seconds to boot up instead of doing so immediately as the console does in “sleep” mode. The change is a small price to pay for what the outlet described as “significant” energy savings.

Xbox Under Fire

To many leading conservative voices, the minimal shifts were just another example of “woke” culture. 

While discussing M&M’s spokescandies Tuesday morning, “Fox and Friends” co-host Ainsley Earhardt brought up Xbox’s new changes with Fox radio host Jimmy Failla.

“So Xbox has also announced that they’re going woke too, you know, because of climate change,” Earhardt said.

“I mean, it’s crazy what they’re doing, but we understand what this is. It’s not that it’s actually going to offset emissions, okay — the level of reduction is infinitesimal,”  Failla claimed, without evidence. “But they’re trying to recruit your kids into climate politics at an earlier age; make them climate conscious now.”

“Yeah, I didn’t think of that — you’re right, they’re going after the children,” Earhardt agreed, despite the fact that internal data from Microsoft shows just around 10% of Xbox owners are under the age of 18.

Other prominent conservatives also did their part to bait Americans into anger on social media, including America’s Foundation, which posted a tweet stating that “the woke brigade is after video games.”

The post linked an article from the right-wing website TheBlaze, which asserted that “Xbox will force gamers to power down to fight climate change.”  That, however, is false — Xbox has said users can switch back and change the settings any time they want

Still, top lawmakers continued to share the article and spread its false claims, including Sen. Ted Cruz (R-Tx.).

“First gas stoves, then your coffee, now they’re gunning for your Xbox,” he wrote in the post, which was flagged by Twitter and given an “added context” warning.

The same warning, however, was not placed in a very similar post by Rep. Troy Nehls (R-Tx.), who also shared the article.

“They want to take your guns. They want to take your gas stoves. And now they want to take your Xbox. What’s next?” he wrote.

See what others are saying: (The Washington Post) (The Daily Beast) (VICE)

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Washington State Launches Investigation Into Abuse at Private Special Ed. Schools

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Allegations include staff kicking a fourth-grader and dragging a child with autism around by his leg.


Abuse Allegations

Washington State’s Office of Superintendent of Public Instruction (OSPI) has launched an investigation into a system of private schools for kids with disabilities after ProPublica and the Seattle Times reported on allegations of abuse.

The series of articles focused on Northwest School of Innovative Learning (NWSOIL). NWSOIL is a set of private schools that serve 500 Washington public school students with serious disabilities. ProPublica and the Seattle Times found years of complaints from parents and school districts against NWSOIL alleging abuse, overuse of isolation rooms, and unqualified aides teaching instead of certified professionals.

One district claimed NWSOIL staff kicked a fourth-grader. Another alleged that a child with autism was dragged around by his thigh.

Many former NWSOIL employees also claim that they were pressured by their parent company to to enroll more students and skimp on basic resources, like staffing.

Investigation Launched

In a seven-page letter, OSPI reminded NWSOIL of its authority to revoke or suspend a school’s approval, meaning that it could shut NWSOIL down. 

“Given the serious nature of the allegations made in the articles, OSPI is examining what, if any, actions need to be taken with respect to Northwest SOIL’s approval to contract with Washington school districts,” Tania May, assistant superintendent for special education at OSPI, wrote in the letter.

OSPI has demanded any records of mistreatment, maltreatment, abuse, or neglect as well as documents pertaining to restraint or isolation of students and calls to the police. They are also seeking information about the student-to-teacher ratio and staff qualifications. 

In the letter, OSPI claims that all of this was previously unknown to them as well as to police, Child Protective Services, and local school districts. They are asking NWSOIL for an explanation as to why the allegations were not reported. 

NWSOIL defended itself in a public statement.

“Use of restraints and seclusion are always used as a last response when a student is at imminent risk of hurting themselves or others, it said. “We strongly deny any allegation that we understaff and/or pressure staff to increase admissions in order to maximize profits.” 

Washington state representatives are considering a reform bill that will give them more oversight on the publicly funded system of private special education schools. 

In this legislation, OSPI and at least one district that sends students to this program would be required to visit before approving the contract. It would also standardize district agreements with programs like NWSOIL, including financial safeguards to make sure funds are being used appropriately.

See the full series: (ProPublica) (The Seattle Times)

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Mass Shootings in Half Moon Bay, Oakland Rock California

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Just since Saturday, at least 19 people have been killed and 17 have been injured in mass shootings in California.


California Sees Third Attack in Under a Week

Two California localities experienced separate mass shootings Monday, just days after an attacker killed 11 and injured nine others in a suburb of Los Angeles.

The first of the most recent shootings took place in Half Moon Bay, a small coastal town about 30 miles outside of San Francisco, where a gunman killed seven and critically injured an eighth at two different locations.

According to authorities, police were dispatched to the first location around 2:20 pm and found four people shot to death and a fifth victim also suffering gunshot wounds. Shortly after, three more people were found dead at another site nearby.

About two hours later, police discovered the suspect in his car in the parking lot of a San Mateo County Sheriff’s Office substation with a semiautomatic handgun in the vehicle that officials later confirmed he had purchased legally.

Sheriff Christina Corpus said the man was taken into custody “without incident” and is “fully cooperating.” He has been identified as a 66-year-old Half Moon Bay resident of Asian descent.

Currently, the gunman’s motive is unknown, but the Sheriff told reporters Monday that both of the locations he targeted were nurseries, and it has since been reported that they were mushroom farms.

“All evidence we have points to this being an instance of workplace violence. The Mountain Mushroom Farm, the first location, is where the subject was employed,” Corpus said in a press conference Tuesday, though she added that, so far, the “only known connection between the victims and the suspect is that they may have been coworkers.”

As of writing, it remains unclear why he targeted the second location. A mushroom farm called Concord Farms has told reporters that it was the site of the second shooting — which a law enforcement official confirmed to The Washington Post.

In a statement to the media, a spokesperson said the farm had “no past knowledge” of the alleged gunman or his possible motives. Little has been released about the victims, though Corpus said Tuesday they were all adults and a “mixture of Asian and Hispanic descent,” some of whom were migrants. 

Authorities had previously stated that, because people both live and work on the farms, children were among those who witnessed the shooting. However, on Tuesday, one official walked that back and said while children were indeed in the vicinity, police do not have information about specific witnesses.

Just hours after the violence in Half Moon Bay, seven people were injured, and one other was killed during a shooting at a gas station in Oakland. Very little has been reported about the incident, but police have said that the shooting was “between several individuals.”

Renewed Calls for Gun Control

Californians continue to reel from the rapid succession of mass shootings in a state known for its strict gun control laws.

According to Everytown for Gun Safety, a nonprofit that advocates against gun violence, the state ranks No. 1 in the country for gun law strength. An analysis led by the organization found that California has the sixth-lowest rate of gun ownership and the eighth-lowest gun death rate.

Many of California’s top lawmakers have argued that the state’s relatively low gun violence statistics emphasize the need for more federal regulations.

“The Second Amendment’s becoming a suicide pact,” Gov. Gavin Newsom (D) told CBS News in an interview.

“We’ll continue to find whatever loopholes we can and continue to lead the national conversation on gun safety reform. And the data bares out. It works. It saves lives,” he continued. “California’s 37% lower than the death rate of the rest of the nation, and yet, with all that evidence, no one on the other side seems to give a damn. I can’t get anything done in Congress.”

Following the Monterey Park shooting, U.S. Sen. Diane Feinstein (D-Ca.), alongside other Democratic colleagues, introduced two gun control bills in the upper chamber. The first would ban assault weapons, while the second aims to raise the minimum age to purchase assault weapons from 18 to 21.

President Joe Biden quickly threw his support behind the measures, urging Congress to pass them.

“The majority of the American people agree with this commonsense action,” he said in a statement Monday. “There can be no greater responsibility than to do all we can to ensure the safety of our children, our communities and our nation.”

Editor’s Note: At Rogue Rocket, we make it a point to not include the names and pictures of mass murders, suspected mass murderers, or those accused of committing violent crimes who may have been seeking attention or infamy. Therefore, we will not be linking to other sources, as they may contain these details.

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