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Loophole allows wealthy families, which meant state aid for poor students, reports say

nearvideo universities to investigate reports of wealthy parents use college financial aid loophole

Parents are supposed to turn over the custody of their teenager, it is possible for the students to explain the financial independence and qualify for the tuition aid and scholarships; reaction of Jeanne Allen, founder and CEO of the Center for Education Reform.

A loophole that has allowed some of the wealthy families, which meant state aid for low-income students is now in question, according to the reports.

Details of the scheme were, first, ProPublica and The Wall Street Journal reported, and the Department of education is now being urged to close the gap.

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“The laws and regulations have been established to the family to help students in need of lawful assistance to attend college,” Department of Education spokesman Liz Hill Fox News E-Mail said. “Those who break the rules must be held responsible, and the Department is obliged to assess what changes can be made either independently or in conjunction with the Convention for the protection of the taxpayer ahead of those who try to game the system for their own financial gain.”

An independent watchdog for the Department of education is closing the recommendation of a change in the gap.

Federal authorities have indicated that some parents in Illinois were to make the transfer of guardianship over their children to friends or relatives, it will appear they came from poorer backgrounds, so that you are entitled to further financial help.

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“You play the system, whether it is legal or not, doesn’t make it less disgusting,” Justin Draeger, chief executive officer and president of the National Association of Student Financial Aid Administrators, said of The magazine.

Officials at the University of Illinois reported, to find the control, after several cases out there.

School officials said the maneuver appears to be legal, but at the same time, it takes away from the limited money that is provided to support needy students.

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“It’s a Scam,” Andy Borst, Director of undergraduate admissions at the University of Illinois at Urbana-Champaign, told ProPublica.

The Associated Press contributed to this report.

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