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"interesting" idea if you feel you can't save enough for college

Home The Lounge "interesting" idea if you feel you can't save enough for college

  • Avatar JBME 
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    https://www.yahoo.com/huffpost/illinois-college-scholarships-034913070.html

    Er….can’t save enough in your 529 because it’s hard enough to save for retirement? disown your kids! Or, save up in a 529 and then disown your kids so they don’t have to put down any 529 money on their FAFSA

    #234989 Reply
    Liked by Craigy, wonka31
    Avatar Panscan 
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    Ridiculous

    #234991 Reply
    Liked by wonka31
    Avatar notadoc 
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    CHICAGO—Amid an intense national furor over the fairness of college admissions, the Education Department is looking into a tactic that has been used in some suburbs here, in which wealthy parents transfer legal guardianship of their college-bound children to relatives or friends so the teens can claim financial aid, say people familiar with the matter.

    One of those legal but is it ethical conflicts

    https://www.msn.com/en-us/money/careersandeducation/wealthy-parents-transfer-guardianship-of-teens-to-get-aid/ar-AAF2qGH?li=BBnbfcL

    [notadoc’s post merged here]

    #235001 Reply
    Lordosis Lordosis 
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    Joke is on the parents when they need help from their former kids.

     

    This screams of something that requires a look back period.  Too bad some schmucks have to ruin it for everyone else.

    “Never let your sense of morals prevent you from doing what is right.”

    #235010 Reply
    Liked by Tim
    Avatar Panscan 
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    It’s also fraud as these children are clearly not independent and receiving support from their parents.

    #235011 Reply
    Avatar jhwkr542 
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    It’s also fraud as these children are clearly not independent and receiving support from their parents.

    Click to expand…

    This was my thought as well. Straight from the court agreement via the article: “The guardian can provide educational and financial support and opportunities to the minor that her parents could not otherwise provide.”

    “While her household income is greater than $250,000 a year, she said, she and her husband have spent about $600,000 putting several older children through college and have no equity in their home, which is valued at about $1.2 million, according to the property website Zillow. She said she has little cash on hand and little saved for her daughter’s education.”

    You don’t have to pay for your kids’ educations!!! College doesn’t have to cost this much!!! This just reeks of privilege. I’m irrationally mad at all of this. I’m going to lunch.

    #235048 Reply
    Avatar ITEngineer 
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    Earnest refinancing bonus
    It’s also fraud as these children are clearly not independent and receiving support from their parents.

    Click to expand…

    I’m at a total loss on how this works. Who pays for their healthcare? Are they apply for Medicaid too? I assume they don’t own a vehicle and do their own grocery shopping. I figured existing laws would allow them to be charged with fraud without having to change the system too much. I’m probably totally ignorant here.

    #235049 Reply
    Lordosis Lordosis 
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    “While her household income is greater than $250,000 a year, she said, she and her husband have spent about $600,000 putting several older children through college and have no equity in their home, which is valued at about $1.2 million, according to the property website Zillow. She said she has little cash on hand and little saved for her daughter’s education.”

    Click to expand…

    250K a year and 1.2M house,  Already spend 600K on education?

    They are paying for things that they cannot afford.

    If you WANT to pay for your kids education then you need to live below your means and save early.

     

    “Never let your sense of morals prevent you from doing what is right.”

    #235052 Reply
    Liked by HikingDO
    Avatar ZZZ 
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    ‘If you WANT to pay for your kids education then you need to live below your means and save early.’

    Or, apparently you can just game the system.

    These parents didn’t make the dumb rules up regarding Pell grants and other ‘need based’ college financial aid. They’re just taking advantage of loopholes. That’s what happens when gov’t and lobbyists get involved.

    Why should every kid at the college pay a different price? For all the talk of need for transparent pricing in healthcare, higher ed is just as bad. Charging some kid who’s parents have worked and saved responsibly $60k/yr even if the parents won’t contribute a dime to their tuition; while giving a free ride to some kid whose parents never saved a dime, made bad financial choices, and cut back their hours at work to stay under the 100k or whatever arbitrary cap the school places on need based aid and assets lends itself to people doing stuff just like this.

    MPMD MPMD 
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    It’s also fraud as these children are clearly not independent and receiving support from their parents. 

    Click to expand…

    I’m at a total loss on how this works. Who pays for their healthcare? Are they apply for Medicaid too? I assume they don’t own a vehicle and do their own grocery shopping. I figured existing laws would allow them to be charged with fraud without having to change the system too much. I’m probably totally ignorant here.

    Click to expand…

    Yeah the ethics aside (and this is clearly unethical) it seems like this could really come back to bite you if a kid had a major medical issue and they were obviously kicked off your insurance with this scheme.

    #235279 Reply
    Liked by Tim
    ENT Doc ENT Doc 
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    Why should every kid at the college pay a different price?

    Click to expand…

    This.

    College costs should be under every economic textbook as the best example of 1st degree price discrimination.

    BTW, if the child is independent and has a 529 this is worse (at least for the 529 valuation component) for the child as it pertains to financial aid.

    #235337 Reply
    Craigy Craigy 
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    There should be no need based aid.

    If the tuition is worth it, they’ll be able to pay back the loans in no time.

    LEVEL 1 WCI FORUM MEMBER.

    #235345 Reply
    Craigy Craigy 
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    “While her household income is greater than $250,000 a year, she said, she and her husband have spent about $600,000 putting several older children through college and have no equity in their home, which is valued at about $1.2 million, according to the property website Zillow. She said she has little cash on hand and little saved for her daughter’s education.” 

    Click to expand…

    250K a year and 1.2M house,  Already spend 600K on education?

    They are paying for things that they cannot afford.

    If you WANT to pay for your kids education then you need to live below your means and save early.

    Click to expand…

    While I agree with you in theory…

    “education” is seen by many (most) to be a necessity, not a luxury (which it is).

    You are seen as a bad parent if you don’t send your kid to the college of their dreams.

    As a kid, you are told you deserve to go to the best college because you “earned it” by working hard in grade school.

    For what that’s worth.

    LEVEL 1 WCI FORUM MEMBER.

    #235346 Reply
    Avatar DCdoc 
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    This seems like taking full advantage of tax code in a legal way. Is it less ethical than PSLF? Is there any other thing in life we purchase where the cost depends on NW? I can’t imagine buying a car where the cost depended on income.

    #235347 Reply
    Avatar Panscan 
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    It is way less ethical than pslf because you’re not committing fraud with pslf, you’re just honoring a contract.

    Show me one single kid who is doing this and is independent and paying for all their stuff without help from parents. One single kid.

    It’s literally fraud

    #235360 Reply
    Liked by Tim

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