Legal Question in Education Law in New York

college tuition asset shelter
I am an undergraduate student at a private US university. I am a recipient of financial aid in the form of University grants. According to University policy, my personal assets are taken into account in calculating my ability to pay tuition. In effect, my summer earnings decrease the size of grant for the coming year.

I have an idea to circumvent this policy, allowing me to earn money without the penalty of increased tuition cost. A trusted person would establish an LLC. I would be hired as an employee of the LLC. I would earn money through legal, ''self-employed'' means, and my earnings would immediately become assets of the LLC. I would receive a small stipend from the LLC as wage after the summer of work, but most of the earnings would remain as assets of the LLC. Since the LLC is owned by my trusted friend and I have no ownership in it, the LLC assets would not be taken into account in determining the size of my university grant.

Upon my graduation, my friend would give me a gift: either the LLC and its assets, or just the assets.

Is this legal? Are there legal ramifications I have not considered?

Thanks,
College Student

Asked on 12/04/08, 10:54 pm

Mark S. Moroknek Kelly & Curtis, PLLC.

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0 attorneys agreed

Re: college tuition asset shelter

If they find out about it they will sue you and they could do it after you graduate. A long time after. Don't.

Answered on 12/05/08, 6:42 am

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