parents who "disown" their children" to make them look poor during college applicationI'm sure this happens. Parents can also get divorced, the kid then becomes a dependent of a poor parent.
But it goes both ways. E.g. in a case I'm familiar with, a friend of my daughter:
1) her father died when she was young, IIRC a junior in high school
2) now she's poor, mother doesn't have or make much money. Fortunately there are things like life insurance and social security survivors benefits to help.
3) colleges like to give good financial aid packages to poor people.
4) mother remarries, but this is a 2nd marriage and so people are older, with existing children
5) now mother is part of a household with a lot higher income; sucks for the daughter because now she isn't getting jack-shit in terms of college financial aid
I certainly wouldn't expect her new stepfather to want to pay $20,000 or more per year tuition for an 18 year old girl whose mother he just married. Especially when he has his own kids to think of for college.
Unfortunately for the kid, community college became the only option.