How can a type one diabetic child have high cholesterol?

Heredity. Most children with high cholesterol have inherited the tendency for high cholesterol.
Diet. Diet - plain and simple. Don't let the child eat fast food, processed food, frozen food, packaged snacks. Their diet should consist of healthy, veggie-based, low-fat meals (preferably home-prepared), water, and teas. Limit sodas to almost none. Juices should be limited and absolutely no added sugar. Meats should be low-fat poultry and fish only. Home-prepared because restaurants aren't healthy.