<p>As I remember, the $14,000/year loan is on extremely favorable terms. It would probably make more sense for the parents to help with repaying the loan over time -- i.e., treat all or part of it as a loan to them, not the student -- than to forgo the opportunity to get heavily subsidized financing.</p>
<p>$2,000 can probably go a pretty long way at Dartmouth, especially if you work 6-10 hours/week during the school year. That's about what my daughter spent her first year in college in a big city (but we paid for all her books and for a public transportation pass).</p>