Disown your kid to pay for college

Podcast Episode Summary

The main topic of this episode of "Today Explained" is the growing trend of wealthy parents exploiting a loophole in the college admissions process by transferring guardianship of their children to a third party, making their kids appear eligible for financial aid. This practice, known as "guardianship," has been reported to be happening in various parts of the country, including Chicago.

Key Points:

• Wealthy parents are transferring guardianship of their children to a third party, often a friend or business associate, to make their kids appear eligible for financial aid.
• This practice, known as "guardianship," allows parents to save tens of thousands of dollars per year on college tuition.
• The loophole has been exploited by parents who want to avoid taking out loans or paying for their children's education.
• The practice has been reported to be happening in various parts of the country, including Chicago.
• The University of Illinois has been affected by this practice, with 38 families transferring guardianship of their children in one county.
• The admissions director for the University of Illinois has called this practice a "scam."

Participants: