In Illinois it is STILL impossible for “the lower class” to attend the instate public U in question.
A family with FAFSA EFC 0 - zero - is still expected to pay more than $15k a yer to attend UIUC.
The fact of the matter is that people do lie , cheat, steal and get away with it in any situation. Yes, you can hide your money under the mattress or just not report it and likely not get caught by FAFSA verification. Some financial aid offices just rubber stamp everything. I’ve seen it. You can disown your kid so he’s legitimately homeless , and get independent status, maybe auto-zero EFC and get PELL and other low income perks IF the financial aid officer doesn’t see red flags and scrutinize the situation . It might even pass scrutiny. I am not one but surprised a company is capitalizing on this niche.
You can , not report gifts from grandma, outside scholarships , under table jobs. Heck, people cheat on their taxes all of the time. Those cheats on the 1040 carry right over to FAFSA and PROFILE
You can also get caught. You don’t know who this child of yours will grow up to be. Kinda hurts when this sort of shady business costs the kid a great opportunity. It happens all of the time. Or YOU , the masterminding parent or spouse gets caught and may you don’t get that dream judgeship or other such position.
If it takes possible consequences to deter you from doing these chests, then yes, there are some real ones out there that can hurt big time. But mainly, some of us just do the right, legal thing. And some of us do not. So it is with every endeavor
UIUC Promise gives students with an EFC of $0 (and under $50K assets) a full ride (tuition, fees, room and board, books), but does require they work 10-12 hours per week. https://osfa.illinois.edu/types-of-aid/other-aid/illinois-promise/
UIUC Commitment gives students with family incomes under $61K and <$50K assets free tuition/fees, so yes, requires paying room and board, books, etc. https://osfa.illinois.edu/types-of-aid/other-aid/illinois-commitment/illinois-commitment-frequently-asked-questions/
Too bad MN doesn’t have something like this. We have a 0 EFC and we’re pretty much at 11-15K/school, after a full Pell and full state grant. I’ve saved, so we’re fine, but for those that couldn’t afford to do so even 11K is rough. Community college or local 4 year university (if you’re fortunate enough to live near one) are about the only options. Not that those are BAD options. 0 EFC would get you a full ride going that route.
It doesn’t surprise me that the people in this particular area are doing this. While it is a wealthy area, there are more “average” dual income families who make good money, but have little to show for it. I work right next to Lincolnshire, and have many coworkers who live nearby. They likely earn between $150k-to 175k per year. Definitely full pay everywhere. Their houses cost a lot when they bought them, and have lost up to 30% of real value. Property taxes have nearly doubled. Taxes increase and increase every time you turn around state wide. There was no real economic recovery for Illinois. Many are still underwater on their homes a decade after the housing bubble. A $250k home in Illinois can have upwards of 10k per year in property taxes. You pay for everything through the nose. Many coworkers who went to 4 year colleges the,selves cannot send their own kids - reality for a lot of Illinois families, even those who had been very fortunate themselves.
What irks me is that it likely isn’t these people cheating. I am betting that it is very wealthy people doing this, not the average hardworking person. My coworkers take huge loans or their kids go to community college, or they are lucky enough to get merit.
Minimally, the counselor knows if they are a title I school where most of the students are eligible for free or reduced lunch. At some schools if you are not title I you must submit proof of income for fee waivers. I am willing to bet money that parents come to parent teacher conferences, there is contact information and work locations on emergency contact cards, etc.
Not people always feel these are the same thing. Easy to know what’s legal (at least usually), but not always know what’s right. I go back to an example I gave earlier. Grandparent gifts money to the parent to pay education bill. Clear as day it needs to be reported. Car breaks down and grandparent buys car for parent freeing up money so parent then has enough money to pay education bill. Nothing to be reported. Both cases are legal. Is the car gift, however, right or wrong in the context of grandma helping out?
How much do community colleges cost in your area? (Obviously, there are still commuting costs and live-at-home costs as well.)
No, it doesn’t have to be reported. If Grandparents PAY the school or give the money directly to the child, then it is reported. If the grandparents give the money to the parent? Nope, it’s just a gift.
Interesting - and not reflected on their NPC which I ran to get the $15k figure.
https://secure.osfa.illinois.edu/NPC/NPC.asp
The promise also looks like it requires you be under the federal poverty level.
But yay for Illinois. I wish we had that in Ohio. (OSU offers free tuition only, I believe, for poorest residents).
Correct. Gifts received do not have to be reported as income. Gifts given to others have to be reported only if in excess of the annual gift giving limit (but this is the grandparents responsibility, not the parents or student).
Let’s not conflate the requirement for a gift giver to report a gift on IRS Form 709 that exceeds the annual exclusion amount with any requirements to report on FAFSA gifts received from or bills paid by a person whose financial information is not included on the FAFSA.
@ucbalumnus While each Illinois community college can have difference prices, here is one. $15,880
Tuition $4,110
Books and Supplies $900
Other Fees $330
Estimated Off Campus Cost of Living $8,750
Other Expenses Budget $1,790
Five miles away is a state university. $19,990
Tuition $8,220
Books and Supplies $900
Other Fees $330
Estimated Off Campus Cost of Living $8,750
Other Expenses Budget $1,790
We never filled out the FAFSA. But do gifts to parents have to be reported, or only gifts to the student?
Only gifts to the student from someone who is not already reporting financial information on the student’s FAFSA.
@ucbalumnus Harper College, (one of the closer community colleges to the area in question) has tuition and fees about $5,000 for a year. The nearest public 4 year college is University of Illinois, Chicago tuition and fees is $17k. Neither includes books, food or commuting costs. It is a huge difference for the Chicago suburbs. For many the trip downtown represents a 2 hour one way commute. The 4 year state schools are mostly in the middle of nowhere.
So it sounds like the grandparents giving a gift to the parents is a legal loophole.
But is it ethical? I say yes in this case. FAFSA (to the best of my limited knowledge) asks what the immediate family can provide, not what the extended family can provide.
Is $8,750 the cost of the student living on his/her own (possibly with roommates), or living with parents and commuting?
@ucbalumnus While it doesn’t say but probably off campus since the state university doesn’t have enough housing other than freshman and some sophomores. The $8.750 is for one student in a 4 bedroom apartment. If they want a 2 year degree it is more. 2 Year Sticker Price including living expenses
$39,980
Year Illinois Residents Non Residents
1 $19,990 $24,100
2 $20,305 $24,480
When you live in the Chicagoland area you are in a residential zone for community college. It shows up on my property tax bill each year. So most kids live within a short distance to community college. Not all but most. So if you have access to car you can live at home and go to community college. It is quite common for many of the kids that go to our HS. I didn’t look at the costs of the local community college but I think it is around $5-6K a year for tuition/fees. So doable for many people.
That being said without merit you are not going to get a COA(including R&B) under $20K a year in IL. In most cases it will be higher even at the directional schools. Merit will bring the costs down to a reasonable number for some kids. But UIUC doesn’t give much merit as it doesn’t have to. Hence, the reason IL has one of the largest rates of high stats kids leaving the state for college.
Overall it isn’t surprising that people are trying to cheat the system. People do it on taxes so why not try on college costs.