The risk is high that the student would have to drop out after freshman year or, if the parents took the loans for such a high amount, after sophomore year… 
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There is also a growing risk of not being able to qualify for large educational loans as the amount owed by student/family grows every term.
I’d really look hard at more affordable options that allow the student to graduate with much less debt or even better with no debt.
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This is really essential.
MOST students are constrained by financial reality to attend universities that they can afford. MOST students have to pick which universities they attend based on cost. A lot of students are restricted to in-state public universities. One of the strongest students that either daughter knew started at community college for the first two years to save money – and graduates in just a few weeks from an in-state public university with very little debt and a practical major.
I know a few people who had to drop out of university because they had gotten part way through and then found that neither the student nor the parents could borrow enough money to finish. This leaves you with the debt and no degree and is very bad. I have heard that this is in fact relatively common.
You want to start at a university that you know is going to be affordable for a full four years. We actually told a “little white lie” to our kids and started them off with a budget that would not have been a disaster even if they had gone five years. Even better is a school that requires no debt at all.
Also, if you have more than one child, you want to start your first child off with a budget that will allow you to pay just as much for each of your other children.
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This is what i am wondering – am i allowed to accept only the subsidized portion of my child’s aid package (a mixture of scholarship, sub and unsub loans and work study) and decline the unsubsidized part?
Yes, you are 
Yes
You can decline any or all of what you’re offered in a financial aid package, including any portion of any subsidized or unsubsidized loan, up to 100%.
The U is not obligated to reconsider or recalculate your offer, based on what you decide to decline and likely will no make any changes.
Moderator here.
Please make a new thread so that you can ask your own questions. This will enable you to get answers that are relevant to your situation.
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I’m all set
Thanks for all the help