<p>It is interesting and amazing that that the FAO at the college thinks it is ok. I think it probably is illegal - is it really worth the risk? The only drawback with the IRA idea is you said most of the money is from non-taxed income? I believe IRAs contribution have to be earned income that tax year. There are ethical ways to approach this - for instance are there any expenses coming up that you can pay for now rather than later - computer etc? I don't disagree that the % taken from the students assets is disproportionally high and probably unfair. But it is what it is - I don't like the speed limit on the road to my house either - doesn't stop me from getting a ticket if I break it.</p>