I never planned on ever posting something like this but I am sick and tired of hearing this person brag about getting her kids college paid by “finding a loophole in the system”. First of all, this woman who is doing the talking is a top executive in my company who is worth millions. Years ago she divorced her “stay at home husband” (very amicable and friendly divorce, great friends today) and brags at how her kids go to top Universities in the US basically dirt cheap by getting government and university aid by using the stay at home ex-husbands so called non existent income. Supposedly he claims sole custody of the kids and they use that on the FASTFA forms. I know for a fact that the kids lived in both homes while in High School. The home that the ex-husband received in the divorce is worth over $1m+ along with her multi million dollar home. Again, let me reiterate that she is the CFO of a multi million dollar company and worth millions herself!
Who can you report this egregious act too or is this “loophole” legal? I’m happily married and very upset that I here this garbage at work when my children won’t qualify for low income related assistance. This needs to stop and this big mouth woman needs to pay the price for “stealing” from those who could really use the money! Please advise what I should do. I want to stay anonymous as I am much lower on the totem pole at our company and fear retribution.
It might be a loophole, but if it is fraud of fund recipients (Pell grants), here is information from the US Departmet of Education website:
Report Fraud, Waste and Abuse. To report fraud, waste, abuse, misuse or mismanagement of U.S. Department of Education (ED) program funds (this could include complaints concerning employees, fund recipients, educational institutions, contractors, collection agencies, or lending institutions), please use the online Hotline Complaint Form (see box below).
Select a language below, complete and submit your complaint form
•English
•Español
•Russian
•Vietnamese
•Korean
•Tagalog
If you prefer, you may contact the Inspector General’s Hotline by:
•Calling the OIG Hotline’s toll free number 1-800-MIS-USED. Hotline Operators take calls during the hours of Monday and Wednesday 9:00 AM until 11:00 AM, Eastern Time; Tuesday and Thursday, 1:00 PM until 3:00 PM, Eastern Time except for holidays.
•Downloading a hardcopy of the Hotline Complaint Form, and completing, mailing or faxing to:
Inspector General's Hotline
Office of Inspector General
U.S. Department of Education
400 Maryland Avenue,S.W.
Washington, D.C. 20202-1500
Fax: (202) 245-7047
Your report may be made anonymously or in confidence. No classified information should be submitted to the Hotline. If your complaint involves classified information, please submit your contact information to the Hotline (via phone or complaint form) and request that you be contacted to make separate arrangements so we can receive your complaint.
- IDK what schools her kids go to but the most generous do not accept only the FAFSA, they require non-custodial parent information too, tax returns and other documentation. So I doubt her kids are getting as much as you think.
- Her ex doesn't need sole custody to be the custodial parent, he only needs to have them one day more than half the days in the year.
- If the ex gets child support or alimony from her, he has to report it on FAFSA.
- His primary home value may be exempt, on FAFSA I believe it is. On CSS Profile, no. But if the kids were attending schools that required Profile, they'd probably have to submit the non-custodial parent info as well, so that seems unlikely.
Hard to say without all the info but from what you posted it may very well be perfectly legal.
The form is referred to as FAFSA, not FASTFA.
It doesn’t matter where they lived freshman, sophomore, and even much of junior year of high school.
Home equity matters not one bit on the FAFSA. It is not counted at all.
“Sole custody” also doesn’t matter for FAFSA.
Of the nights not spent at college, if the student spends one more night at dad’s house than at mom’s house, then dad is the correct divorced parent to show on the FAFSA.
If you would like to avail yourself of the same loophole, get divorced and have the kids live with the parent who is not employed.
What kind of schools do her kids attend?
It would be strange if her H got ZERO of the assets when they split except for the home?
Doesn’t she have to pay child and spousal support?
[QUOTE=""]
her kids go to top Universities in the US basically dirt cheap
[/QUOTE]
Where do they go?
My advice…myob.
Sour grapes?
Would you be mad if her millionaire children went to the Naval academy and not only got free tuition but received a paycheck? Sometimes it makes a difference which school you choose. Very few people get to say “I want to go to ABC college and I want it to be free.” Sometimes you have to go to a high merit award college, to a lower ranked school, to the state school to get the ‘free’ deal.
Her children going for free is up to the university that chooses to offer the need based aid (the Pell grant or loans are not going to be enough). Your children could go to school for free too if they choose schools that give big merit awards (and they have the stats), if they go to schools that are looking for students like your kids, if they have special talents in sports or music or some other hook.
One of my daughter’s attends for free because of the choice she made and because of her athletic award. I pay for other daughter who didn’t have the same talents or grades.
Are any of your children in high school? If so, please list GPA and ACT/SAT scores, and state of residency and we can try to suggest schools where they can go at very low cost to you.