<p>Our HS community awards many local scholarships, some strictly need-based, and only requires families to submit their FAFSA-determined EFC to establish need. Every year some kids from families with major obvious assets, usually the family’s McMansion, somehow qualify. Some of the families even have second vacation homes. Typically they are business owners. I gather that asset ownership can be shifted and income reduced by business owners during the FAFSA application years; maybe there are other techniques as well. Any ideas as to how to discourage these people from applying, so that those scholarships end up with the truly needy? What other documentation could be requested?</p>
<p>Shouldn’t you be telling the people that award the scholarships this? If you have good evidence of cheating, I think you can also tell the federal student aid agency. It is illegal to lie on FAFSA, they might get prosecuted if you can prove that they cheat.</p>
<p>Some of these practices are not illegal (for example, sale of a property to a grandparent for a minimal amount, or drawing a much reduced salary from your own business).</p>