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.

Catholic School Expels Students After Discovering Mother’s OnlyFans Account

Published

on

  • Crystal Jackson, a California mother of three, said her boys were expelled from their Catholic school after other parents notified administrators of her OnlyFans account.
  • Jackson, who started the account to boost her confidence and rekindle her relationship with her husband, said she only posts pinup-style photos in lingerie, not pornography. 
  • Now, she’s speaking out against the intense harassment she’s faced from parents in her community and has criticized the school’s decision to punish her children. 
  • She also said the school is working to update its handbook to include a rule that “any parent who is involved in a site or blog that goes against teachings of the church and school philosophy must be removed.”

Mother’s OnlyFans Account Draws Criticism

A mother in Sacramento, California says her three boys were expelled from their Catholic school after administrators discovered her OnlyFans account.

That mother is Crystal Jackson, who joined the site in 2019 to spice up her struggling relationship with her husband of 14 years, Chris.

Jackson says she does not post pornography on her account. Instead, she posts pinup-style photos in lingerie and includes “sexy stories” that play up the image of what she and Chris call “the mom next door.”

The account started as a secret between the two of them, but it has since become a huge success, bringing in over $150,000 a month along with hundreds of thousands of social media followers. 

While the new venture has also brought her a boost of joy and self-confidence, her growing popularity on the platform eventually caught the attention of parents at Sacred Heart Parish School.

According to several interviews Crystal has given to media outlets, parents were relentlessly urging that her sons be kicked out of school.

They began harassing her with texts and voicemails bullying her and insulting her family. At one point, she says a group of mothers even printed out her OnlyFans photos and sent them anonymously in a packet to the school principal.

Some also reported her to their local priest and bishop and created a Facebook group to gossip about her family. 

School Expels Mother’s Three Sons

She was eventually removed as 2nd-grade ‘room mother’ due to the complaints. After growing tired of the treatment, she eventually gave an interview to The Sun about all the harassment.

But the issue escalated Sunday when the school sent her a letter notifying her of its decision.

“Your apparent quest for high-profile controversy in support of your adult website is in direct conflict with what we hope to impart to our students and is directly opposed to the policies laid out in our Parent/Student Handbook,” it read.

“We therefore require that you find another school for your children and have no further association with ours.”

Now, she says the school is working to update their handbook to include a rule that says: “Any parent who is involved in a site or blog that goes against teachings of the church and school philosophy must be removed.”

Crystal has continued to speak out against the school’s decision, telling People Magazine that her 8, 10, and 12 years old are good kids who are only being hurt by the school’s actions. 

“Take me down, that’s fine, but leave my kids out of this,” she said.

“I didn’t want to be put out there, but at some point, I have to stand up and say I can’t take it anymore because this behavior is horrible,” she added.

Crystal noted that she was hoping to put her kids back in Catholic school but says she and her husband will likely have to put them in public school.

“They won’t allow them in this diocese, and is this really the place for them to be?” she said. “It’s clear that they said we don’t want you.”

“In the year 2021, here we are, trying to bring a woman down for her choices and what she does with her husband,” Crystal added. “It’s body shaming and bullying all encompassed into one and it’s such a double standard and disturbing.”

For now, she’s just hoping the judgment and harassment in her community will stop. “I’m still the same Crystal I was, like, two years ago, a year ago, when we had coffee, before you knew this.

See what others are saying: (People) (NBC News) (The Sun)

Continue Reading

U.S.

Nearly 9 Million Are Without Water in Texas, Some Face Electric Bills up To $17,000

Published

on

  • More than 8.8 million people in Texas remained under boil water notices Monday, and over 120,000 had no water service at all. 
  • Gov. Greg Abbott (R) said Sunday that the state has distributed around 3.5 million bottles of water, though many of the lines to receive that water were plagued with hours-long waits.
  • Meanwhile, power outages in the state have fallen below 20,000, but many Texans are also beginning to receive astronomical electric bills of as much as $17,000.
  • Both Abbott and Houston Mayor Sylvester Turner (D) said those prices are not the fault of customers. While some form of forgiveness is likely, no immediate plan has been outlined yet. 

Millions Without Water

As of Monday morning, nearly 8.8 million people in Texas are still under boil water notices following last week’s snowstorm. That’s about one out of every three Texans.

Despite being a giant chunk of the state’s population, that figure is actually an improvement from 10 million people on Sunday. 

Another 120,000 Texans are still without water service at all.

Gov. Greg Abbott (R) said Sunday almost 3.5 million bottles of water have been distributed across Texas by helicopter, airplane, and truck.

The need for water has been extremely visible. An Austin City Council member shared a video on Twitter Sunday showing a massive line of vehicles waiting for clean water. Some waited for more than an hour before the distribution event began. At another site, she said cars began lining up more than five hours before the event. 

Abbott said the state is bringing in more plumbers to increase repair efforts for damaged water systems. Additionally, Abbott said homeowners without insurance could qualify for emergency reimbursement from FEMA.

Meanwhile, one large-scale effort from Rep. Alexandria Ocasio-Cortez (D-NY.) has now raised more than $5 million since first being launched on Thursday. That money will go to several organizations, including the Houston Food Bank, Family Eldercare, Feeding Texas, and the Bridge Homeless Recovery Center.

Texas Electric Bills Soar as High as $17K

All but just under 20,000 Texas homes and businesses have now had their power restored as of Monday morning.

That’s a stark contrast from the more than 4 million that were out of power at one point last week. 

While that’s largely good news, many Texans are now beginning to receive sky-high electric bills. That’s especially evident for those whose power stayed on during the storm. In fact, some people have now told multiple media outlets they’re facing bills as high as $17,000.

One 63-year-old Army vet, who was charged $16,752, told The New York Times that his bill was about 70 times higher than normal.

“My savings is gone,” he said. “There’s nothing I can do about it, but it’s broken me.”

As far as why his and others’ eclectic bills are so high, many people in Texas have plans that are directly tied to the wholesale price of electricity. Usually, that helps keep their costs low, but as demand for power surged during last week’s snowstorm, those prices hit astronomical highs. 

In a statement on Saturday, Abbott said Texas lawmakers “have a responsibility to protect Texans from spikes in their energy bills that are a result of the severe winter weather and power outages,” 

He added that the state Legislature is working “on solutions to help Texas families and ensure they do not get stuck with skyrocketing energy bills.”

In a similar tone, Houston Mayor Sylvester Turner (D) said in an interview with CBS on Sunday, “It’s not the consumers who should assume [these] costs. They are not at fault for what happened this week.”

That said, Turner also laid blame at the feet of the Legislature, calling the current crisis “foreseeable” on the part of lawmakers because a similar snowstorm and outages struck Texas in 2011.

Turner added that, at the time, he was part of the Texas legislature and had filed a bill that would have required the agency overseeing Texas’ grid to “ensure that there was an adequate reserve to prevent blackouts.”

“The leadership in Austin did not give it a hearing,” he said. 

While no aid has been fully guaranteed yet, Texas has prevented electric companies from being able to shut off power for people who don’t pay their bills on time. 

See what others are saying: (NBC News) (The New York Times) (CNN)

Continue Reading

U.S.

Texans Still Face Broken Pipes, Flooding, and Carbon Monoxide Poisoning as Million Regain Power

Published

on

  • The number of Texans without power fell from 3.3 million on Wednesday to below 500,000 by Thursday.
  • Still, millions are currently under a boil advisory, pipes have burst as they begin to thaw, and some individuals have died or been hospitalized because of carbon monoxide poisoning. 
  • The Federal Emergency Management Agency said Wednesday that it has sent generators, water, and blankets to Texas, adding that it’s working to send additional diesel for generators.
  • Gov. Greg Abbott and President Joe Biden have also reportedly discussed the possibility of extra funding for people’s electricity bills, as well as for burst pipes.

Power May Be Back but Problems Persist

Power outages in Texas Thursday morning fell to under 500,000 — down from 3.3 million Wednesday morning. 

According to the state’s main grid operator, the Electric Reliability Council of Texas (ERCOT), the remaining outages are largely weather-related and not connected to problems related to forced outages. 

While that return of power to millions is significant, Texans are still facing a host of other problems.

For example, there have been numerous reports of carbon monoxide poisoning as people still without power try to keep warm in their cars or through other means. An adult and a child were found dead Tuesday after running their car inside of a garage, prompting Houston police to issue a statement warning that “cars, grills and generators should not be used in or near a building.”

Six children and four adults were rushed to the hospital Wednesday night for carbon monoxide poisoning after setting up grills inside their homes. 

Even for those now with power, water has become a major issue. On Wednesday, 7 million Texans were placed on a boil advisory and about 263,000 were without functioning water providers. 

One reporter tweeted out a video of people lining up at a park to fill up buckets of water.

“This is not a third world country,” she said. “This is Houston, Texas.”

The Food and Drug Administration and the National Weather Service have even cited melting and boiling snow as an emergency option if people can’t find water elsewhere, an option many have already turned to. 

For some, all these problems only seemed to compound in the form of burst pipes. One viral video shows water gushing out of a third-story apartment. Others posted images of their broken pipes and the damage they have caused. 

As a result, a number of local media outlets have begun to outline steps people can take once their pipes start to thaw or if they break. 

Amid Problems, Aid is Being Distributed

Alongside the overwhelming amount of problems, there has also been a large aid response.

A FEMA spokesperson said Wednesday that the agency has sent 60 “very large” generators to help keep hospitals and other critical infrastructure open. 

White House Press Secretary Jen Psaki added that FEMA is preparing to move diesel into Texas to keep that backup power going.

So far, FEMA said it has sent “millions of liters of water” and “tens of thousands” of blankets.

Governor Greg Abbott and President Joe Biden have also reportedly discussed the possibility of extra funding for people’s electricity bills, as well as for burst pipes. That’s because as the storm first hit, electrical demand surged. Since many Texans have plans connected to the wholesale price of electricity, they’re potentially set to be hit with sky-high bills.

Among other issues plaguing Texans is food spoilage; however, that can potentially be reimbursed through renters’ and homeowners’ insurance.

According to an official from the Insurance Council of Texas, “Food coverage is often related to personal property.”

Notably, there are some stipulations depending on individual circumstances and policy. To learn more about how insurance providers accept food spoilage claims, click here.

See what others are saying: (KTRK) (The New York Times) (Houston Chronicle)

Continue Reading