Connect with us

U.S.

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

Published

on

  • 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)

U.S.

Teens Attack and Rob 80-Year-Old Asian Man in Northern California

Published

on

  • Viral surveillance footage shows an 80-year-old Asian man in the San Francisco Bay area being assaulted and robbed on Saturday by suspects who police say are teenagers.
  • Police believe the suspects are as young as 16, and at one point, one can be heard in the video giggling from the getaway car as the victim cries for help. 
  • The news comes after the nonprofit Stop AAPI Hate released data showing that reports of anti-Asian hate incidents in the U.S. jumped by almost 74% year-over-year in March.

Suspect Laughs at Victim During Attack

Surveillance video going viral on social media captured an 80-year-old Asian man in the San Francisco Bay area getting assaulted and robbed on Saturday by suspects who police believe are teenagers.

The full video is extremely distressing. It shows the man getting knocked to the ground, trying to fight off his attackers as he cries for help. To make matters worse, at one point, high-pitched giggles can be heard coming from another teen in the background. That person appears to be inside a getaway car nearby.

The victim was robbed of a watch and sustained minor injuries. Police have also said that a vehicle similar to the one used in this case was spotted at a strong-armed robbery in a nearby San Leandro area less than two hours later, where another victim was robbed of her purse.

Police believe the suspects are as young as 16.

Surge of Crimes Against Asians in U.S.

This is just the latest violent attack against an Asian person making headlines since the start of the coronavirus pandemic.

Last week, reports emerged regarding two Asian women who were attacked with a hammer in Times Square by someone demanding they remove their masks. Two other Asian women were recently stabbed while waiting for the bus in downtown San Francisco.

The San Francisco-based nonprofit Stop AAPI Hate released data Thursday saying that reports of anti-Asian hate incidents in the U.S. jumped by almost 74% year-over-year in March — with Chinese people as victims in 44% of these acts.

Vancouver Sees Massive Influx of Anti-Asian Hate

While anti-Asian hate crimes have surged in the U.S., the situation may be worse in Canada, specifically in Vancouver. Around 42% of people in Vancouver are of Asian descent and at least 25% speak Chinese — making it the most heavily Asian city in North America.

Still, it witnessed a 717% year-over-year surge in anti-Asian hate crimes in 2020, according to the Vancouver Police Department. Bloomberg even dubbed it the Anti-Asian hate crime capital of North America, saying more anti-Asian hate crimes were reported in the city of 700,000 people last year than in the 10 largest U.S. cities combined.

That’s part of why people all across the city are participating in more organized action to speak out against anti-Asian hate. For instance, several rallies took place in Vancouver Monday to mark the National Day of Action Against Anti-Asian Racism.

See what others are saying: (ABC 7) (Bloomberg) (Forbes)

Continue Reading

U.S.

Derek Chauvin and 3 Others Ex-Officers Indicted on Civil Rights Charges Over George Floyd’s Death

Published

on

  • The Justice Department filed federal criminal charges Friday against Derek Chauvin and three other former Minneapolis police officers after a grand jury indicted them for violating the civil rights of George Floyd.
  • The indictment charges Chauvin, J. Alexander Kueng, and Tou Thao for violating Floyd’s right to be free from unreasonable seizure and unreasonable force. All three, as well as Thomas Lane, were also charged with failing to provide medical care to Floyd. 
  • Chauvin was additionally hit with two counts in a separate indictment, which claims he violated the civil rights of a 14-year-old boy who he allegedly held by the neck and repeatedly beat with a flashlight during a 2017 arrest.
  • Chauvin was already convicted last month of murder and manslaughter over Floyd’s death, which Kueng, Lane, and Thao were previously charged for allegedly aiding and abetting.

Former Minneapolis Officers Hit With Federal Charges

A federal grand jury indicted Derek Chauvin and three other former Minneapolis police officers for violating George Floyd’s civil rights during the arrest that lead to his death last summer, the Justice Department announced Friday.

Chauvin, specifically, was charged with violating Floyd’s right to be free from unreasonable seizure and unreasonable force by a police officer. Ex-officers J. Alexander Kueng and Tou Thao were indicted for willfully failing to intervene in Chauvin’s unreasonable use of force.

All three men, as well as former officer Thomas Lane, face charges for failing to provide medical care to Floyd, “thereby acting with deliberate indifference to a substantial risk of harm to Floyd,” according to the indictment.

In a second, separate indictment, Chauvin was hit with two counts of civil rights violations related to the arrest of a 14-year-old boy in September 2017. During that incident, Chauvin allegedly held the boy by the neck and hit him with a flashlight repeatedly.

The announcement, which follows a months-long investigation by the Justice Department’s Civil Rights Division, comes just over two weeks after Chauvin was found guilty of three state charges of murder and manslaughter in Floyd’s death.

He is currently awaiting his June 25 sentencing in a maximum-security prison.

State-Level Charges

Kueng, Lane, and Thao all face state charges of aiding and abetting second-degree murder and manslaughter.

Kueng and Lane were the first officers to responded to a call from a convenience store employee who claimed that Floyd used a counterfeit $20 bill. Body camera footage showed Floyd sitting in the car and Lane drawing his gun as the officers ordered him out and handcuffed him. 

Floyd can be heard pleading with the officers not to shoot him.

Shortly after, Chauvin and Thao arrived, and the footage shows Chauvin joining the other officers in their attempt to put Floyd into the back of a police car. In the struggle, the officers forced Floyd to the ground, with Chauvin kneeling on his neck while Kueng and Lane held his back and legs. 

Meanwhile, in cellphone footage taken at the scene, Thao can be seen ordering bystanders to stay away, and later preventing a Minneapolis firefighter from giving Floyd medical aid.

Their trial is set to begin in late August, and all three are free on bond. The new federal charges, however, will likely be more difficult to prove.

According to legal experts, prosecutors will have to show beyond reasonable doubt that the officers knew that they were depriving Floyd of his constitutional rights but continued to do so anyway.

The high legal standard is also hard to establish, as officers can easily claim they acted out of fear or even poor judgment.

See what others are saying: (The Washington Post) (The New York Times) (The Associated Press)

Continue Reading

U.S.

Caitlyn Jenner Says Her Friends Are Fleeing California Because of the Homeless Population

Published

on

  • California gubernatorial candidate Caitlyn Jenner sparked outrage after an interview with Sean Hannity on Wednesday that was filmed from her Malibu airplane hangar. 
  • “My friends are leaving California,” she said. “My hangar, the guy right across, he was packing up his hangar and I said, ‘Where are you going?’ And he says, ‘I’m moving to Sedona, Arizona. I can’t take it anymore. I can’t walk down the streets and see the homeless.’”
  • Many criticized Jenner for sounding out of touch and unsympathetic to real issues in California and suggested that she prioritize helping the homeless population rather than incredibly wealthy state residents.

Caitlyn Jenner’s Remarks

California gubernatorial candidate Caitlyn Jenner sparked outrage on Wednesday after suggesting that wealthy people are fleeing the state because of its homeless population.

Jenner sat down for an interview in her Malibu airplane hangar with Fox News’ Sean Hannity. Jenner is one of the handful of Republicans aiming to unseat current Governor Gavin Newsom in a recall election in the fall. While polls show that most Californians do not support recalling Newsom, the conservative-led movement to do so gained enough signatures to land on the ballot.

“My friends are leaving California,” Jenner claimed during the interview. “My hangar, the guy right across, he was packing up his hangar and I said, ‘where are you going?’ And he says, ‘I’m moving to Sedona, Arizona, I can’t take it anymore. I can’t walk down the streets and see the homeless.’” 

“I don’t want to leave,” she continued. “Either I stay and fight, or I get out of here.”

Jenner’s Remarks Prompt Backlash

Her remarks were criticized online by people who thought Jenner sounded unsympathetic and out of touch to the real issues in the state. Many found it hypocritical that Jenner has slammed Newsom for being elite but was so concerned for wealthy people who don’t like having to see unhoused residents on the street.

Rep. Ted Lieu (D-Ca.) called Jenner out on Twitter for seemingly fighting for a small percentage of Californians. 

Unlike you, Dems are focused on the 99% of people who don’t own planes or hangars,” he wrote. “And you know what’s going to help reduce homelessness? The #AmericanRescuePlan, which your party opposed.”

Others suggested she prioritize directly addressing the homeless situation.

“If you don’t like the homeless situation, instead of hiding in your PRIVATE PLANE HANGAR, your campaign should be about helping them,” actress Merrin Dungey said. “They don’t like their situation either. Your lifelong privilege is showing. It’s not a good color.”

Jenner, an Olympic gold medalist and reality star, is one of the most prominent transgender Americans. Because homelessness is such a common issue within the trans community, some were frustrated she was not using her campaign to fix the situation, and rather used it to complain about how it impacted her wealthy friends. 

See what others are saying: (The Hill) (Politico) (Washington Post)

Continue Reading