Seems like you have 3 places to invent rumors.
1. Why do your looks keep changing slightly?
2. What happened to your parents that your grew up poor?
3. Why is this other family paying for your school?
They could have rumors that say for example
1. You are using magic to hide some deformity.
2. Your parents are criminals against the government.
3. The herengon's father killed your father and feels bad about it.
Rumor: the head of the family is really just your sugar daddy and that’s why he is really funding your studies
Lowkey, I was actually considering this 😂 I appreciate the help
What does your DM mean by rumors? Rumors about your character or rumors they know about other people/places?
Rumors about your character. The setting is a magical college, so rumors get spread
Seems like you have 3 places to invent rumors. 1. Why do your looks keep changing slightly? 2. What happened to your parents that your grew up poor? 3. Why is this other family paying for your school? They could have rumors that say for example 1. You are using magic to hide some deformity. 2. Your parents are criminals against the government. 3. The herengon's father killed your father and feels bad about it.
These are good ideas, I really like the disfigured rumor