It’s financial aid application time, and students (and parents) are eager to get as much help as they kind. To that end, they may even be tempted to skirt the rules a bit. But as this story notes, that can really come back to haunt you.
There are legitimate ways to get better offers, but here’s what you want to avoid:
1. Lying about income. (Just as lying to the Internal Revenue Service carries substantial penalties, so too does lying on a FAFSA – a fine of up to $20,000 and up to five years in prison.)
2. Hiding assets.
3. Buying annuities and life insurance to reduce assets