Recently discovered that people would go as low as to quit their jobs so that their kid could get financial aid in college. How pathetic is that? The family specifically was in this situation: father was west branch manager of an international investment firm and made high 6 figure salary, mother unemployed. Then early junior year, the kid’s father “loses” his job and decides to become unemployed. Later learn that it is a strategy they use to get financial aid for their kid- all the money they spend goes into food, vacations, and the stock market. I’m not sure what criteria is used to judge financial aid, but the kid’s parents didn’t go to college so he is first generation to college and requires financial aid. He is an overachiever as well, so probably will get into some Ivy-league or top school. Extremely unjust and immoral that this would happen, as the kid obviously doesn’t need financial aid over someone who actually is impoverished. Any advice? Contact the schools? stay put and dont worry about it? Its just troubling to see how ethically stripped this person and their family have become, seeing as they had been family friends- not friends anymore due to problems of egotism.
Let it go, they’re screwing themselves over in the end.
The father quite a high 6 figure salary in order to get low to mid 5 figure financial aid? Doesn’t sound mathematically sound to me. And that money they’re putting into the stock market will count toward their EFC. If I were you I wouldn’t worry about it. Either there’s something else going on (father was laid off, someone’s very sick and they want to make the most of their time, etc.) or they’re being very, very foolish.
Yeah it doesn’t make sense. He will have to give up salary for the next 4 years. What is there for you to do about it or be concerned about? You can assume you don’t know the whole story. Contact schools and say what, how do you know what schools to contact? They are not doing anything they aren’t allowed to do. Assets are also used for financial aid calculations btw.
It’s these parents’ prerogative to be stupid.
The father didn’t go to college but making HIGH six figure salary ($600,000+)? That’s quite an achievement. He’s my hero.
Then he gave it up? For 65K? It doesn’t make sense.
Something doesn’t make sense.
What will they be living on for FOUR years? Do they have any other children?
Who told you this?
It just doesn’t make sense on many levels. They’d rather live in poverty and have NO EARNINGS than have a high income where a 1/3 or so goes for college costs (and they at least get the rest)???
Who would choose ZERO over “the rest”.
I have colleagues who took a sabbatical from their high-paying jobs, to go backpacking for a year. Maybe the parents are doing a strategically timed Peace Corp stint?
The kid is an only child, so that makes three people in total to live off a 6 figure salary. Minus the kid when he’s off at college on a free tuition. I’m sure a couple can then survive on a well-planned and saved-for-years six figure salary for 4 years, getting extra aid from the government because they seem to not have any income. The father somehow got into the position (most likely by ass kissing, as the entire family seems to specialize in that…every time the highly protective and sheltering mother comes to school, its with a box of chocolates or flowers for college counseling or faculty. I can assume I dont have the full picture, but the puzzle is about 95% complete as I’ve heard not only from the child but from his close confidantes that there is a strategy his family has to strategically get financial aid in college by doing this. Who knows? Maybe its not in the stock market, maybe its in offshore accounts under a false identity. No clue, maybe the parent struck it rich in some insider trading and decided to bail- maybe an audit would be good? Its all very speculative atm, but as a law abiding citizen with a high moral conscience, this troubles me, but I guess there is no real way to combat it
THINK. The dad gave up $440k x 4 years ($1,760,000) to SAVE maybe $200k in tuition? Either you are pulling our legs or someone is pulling yours.
Maybe the guy actually lost his job and someone said “well, on the bright side at least your kid will qualify for Fin Aid” and via the grapevine that turns into the story you heard.
I would suggest you not to let it affect you emotionally since it does not affect you financially.
What do you think you’d actually report, and to whom? From what you have described, they haven’t done anything illegal. Family is now making $0, and that’s what they reported. If the child is at an CSS school, then anything saved should be reported but you really don’t know what they have saved or what they reported. You really don’t know if the child is lying or confused about the cost of his education.
It is not illegal to give up a job and go on welfare or food stamps or Pell grants. If schools offered him a full ride, that’s up to the school. The government certainly isn’t giving him a full ride.
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I’m sure a couple can then survive on a well-planned and saved-for-years six figure salary for 4 years,
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their “saved for years” savings will prevent them from getting a free ride for their child.
Do you not realize that assets count, too?? Not just income?
I don’t think you have a friend who has done this. I think you are wondering if this is possible.
Again, I highly doubt that anyone would do this. They would just pay for the tuition out of their “saved for years” savings, while still working to earn that savings back.
Ummm…yeah.
You also wrote this:
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I know people from around my area that haven't worked hard a day in their life in school and are going to Harvard because their parents are just rich
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I think you have a wild imagination.
Totally ridiculous. I guess the same person may choose a lower paying job in order to pay less tax. LOL.
Why is this your business at a all.
The only finances you need to be concerned with are you own. MYOB when it comes to others.
@foilist
Love it!
Stay out of it. It’s not your business and I don’t think you have your facts straight anyway. Quitting a high paid job means giving up retirement matching programs, health and dental insurance, company sponsored life insurance and more. Plus, schools like Harvard use the CSS profile so their assets would certainly be in play. If they’ve saved enough to live on for 4 years, that savings is going to hurt financial aid. It would be a silly thing to do and loses them more money than they save.
CSS Profile considers both assets and income. I don’t think a school with both FAFSA and CSS Profile will fall for the “poor little rich kid” strategy. Unless they can find a place that does not consider assets at all.
What do you mean he “requires financial aid” as related to his parents not going to college? That is immaterial.
Something is missing from this picture.
I know people who made that much money, and retired before 55. They retired on a pension, and are getting more than enough to full pay for their son (who by the way is going to a state school, though he got into several private universities).
Do you think it is possible you are just jealous they have money?