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Parents giving up guardianship of students so they can apply for financial aid

Posted: 7:59 AM, Jul 31, 2019
Updated: 2019-07-31 10:59:16-04

Parents are giving up legal guardianship of their children so that they can apply for financial aid for college.

Once parents give up guardianship, their children can declare themselves "financially independent." This means that their parents' income and savings are excluded from consideration when applying for financial aid.

Experts say that this newly uncovered scheme is legal.

RELATED: Another college admissions scandal? To get financial aid, parents lose custody of children

The average cost of college is now approximately $32,000 a year and many say is just too expensive, even for wealthy families.