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When I was in high school, one student's parents (one doctor and one lawyer --- very financially well-off) took off work for one year just so they could claim h

When I was in high school, one student's parents (one doctor and one lawyer --- very financially well-off) took off work for one year just so they could claim having no income on the FAFSA documentation. She got accepted everywhere, winning across the places she applied over $300,000 in scholarships. The upper-middle class and wealthy can easily game this. Edit: I should also add that the student and both parents were black. This probably played a large role in the offers.

ww520 5y ago
Make it require 5 years tax returns.
- carrionpigeon 5y ago
  Even then, 1 year off is a 20% income reduction on paper. 2 years would be 40%. Want to catch people voluntarily taking off work versus being 'legitimately' unemployed? (For example, is a realtor with no income during the housing crisis adequately poor?) Then, every university will have to hire people to do the analyses and make value judgements. Long term, factoring in wealth creates all sorts of perverse incentives for parents that prioritize their children's education. It means in the present not taking promotions, even negotiating for lower salaries, and being priced out of better neighborhoods with better schools, all out of fear that doing otherwise will hurt their children's futures. And if their children succeed in getting a good education and a high-paying job, it comes at the cost of sacrificing their own children's futures.
  - j7ake 5y ago
    Can’t this be taken into account by also considering wealth and assets, rather than by only income?
    - otoburb 5y ago
      FAFSA seems to have been updated in recent years to evaluate not only income, but also wealth[1] (minus retirement accounts), including most types of US trusts[2]. [1] https://studentaid.gov/help-center/answers/article/fafsa-question-total-amount-of-parents-asset-net-worth-exceed-amount-listed https://studentaid.gov/help-center/answers/article/fafsa-que... [2] https://mcandrewslaw.com/publications-and-presentations/articles/special-needs-trusts-and-financial-aid-what-should-applicants-do/ https://mcandrewslaw.com/publications-and-presentations/arti...
- lordnacho 5y ago
  You'll also get people claiming estrangement from their parents. It's like one of those AI algorithms that play games, if you don't plug all the holes, the AI figures out how to bunny hop or move all its troops out of range.
notch656a 5y ago
That is fucking genius. Self identify as '<disadvantaged race>' and then quit your jobs, laughing all the way to the bank as the scholarships roll in. You could renovate a house or something in the meantime, wrapping up your cash in that endeavor (little money in the bank on paper, except in the 'family home' while simultaneously having no income, offloading it as soon as the scholarships roll in.

ww520 5y ago

Make it require 5 years tax returns.

carrionpigeon 5y ago
Even then, 1 year off is a 20% income reduction on paper. 2 years would be 40%. Want to catch people voluntarily taking off work versus being 'legitimately' unemployed? (For example, is a realtor with no income during the housing crisis adequately poor?) Then, every university will have to hire people to do the analyses and make value judgements. Long term, factoring in wealth creates all sorts of perverse incentives for parents that prioritize their children's education. It means in the present not taking promotions, even negotiating for lower salaries, and being priced out of better neighborhoods with better schools, all out of fear that doing otherwise will hurt their children's futures. And if their children succeed in getting a good education and a high-paying job, it comes at the cost of sacrificing their own children's futures.
- j7ake 5y ago
  Can’t this be taken into account by also considering wealth and assets, rather than by only income?
  - otoburb 5y ago
    FAFSA seems to have been updated in recent years to evaluate not only income, but also wealth[1] (minus retirement accounts), including most types of US trusts[2]. [1] https://studentaid.gov/help-center/answers/article/fafsa-question-total-amount-of-parents-asset-net-worth-exceed-amount-listed https://studentaid.gov/help-center/answers/article/fafsa-que... [2] https://mcandrewslaw.com/publications-and-presentations/articles/special-needs-trusts-and-financial-aid-what-should-applicants-do/ https://mcandrewslaw.com/publications-and-presentations/arti...
lordnacho 5y ago
You'll also get people claiming estrangement from their parents. It's like one of those AI algorithms that play games, if you don't plug all the holes, the AI figures out how to bunny hop or move all its troops out of range.

notch656a 5y ago

That is fucking genius. Self identify as '<disadvantaged race>' and then quit your jobs, laughing all the way to the bank as the scholarships roll in. You could renovate a house or something in the meantime, wrapping up your cash in that endeavor (little money in the bank on paper, except in the 'family home' while simultaneously having no income, offloading it as soon as the scholarships roll in.