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Students who fill out Federal Applications for Financial Aid (FAFSAs) are granted money for higher education based on need, which is usually gauged by the student's own answers to how much their family made last year. However, when FAFSA answers are compared to tax filings, sometimes egregious understatements were exposed. In one case, a student who received a Pell grant, meant only for low-income families, reported an income of $1.3 million to the IRS.
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