<p>Suppose a school is making you pay $36,000/year to attend. Can they deny you loans because your parents make too much and force you to pay the total amount each year?</p>
<p>No matter what if you file for FAFSA you will be authorized Stafford loans of $5500 as a freshman. Beyond that you’ll have to arrange some other financing.</p>
<p>By filing the FAFSA your parents could also borrow money through the Parent PLUS loan program.</p>
<p>*Can they deny you loans because your parents make too much and force you to pay the total amount each year? *</p>
<p>The schools aren’t usually the lenders, therefore they don’t really have a say in who gets approved for loans for schools.</p>
<p>Parents are free to take out Plus loans and students are free to take out Federal direct/stafford loans.</p>
<p>My aunt and uncle didn’t fill out the FAFSA since they wouldn’t be getting financial aid.</p>
<p>So the loan for the college is done though an outside source and not the school? What source?</p>
<p>So the loans you’re talking about are for your cousin? Since they didn’t file FAFSA, the student is not eligible for federal loans (but they can still file FAFSA if they do want to become eligible). The other choice is private loans through a bank.</p>
<p>Elas,</p>
<p>The school doesn’t ‘make you pay $36,000/year.’ The school costs $36K/year and you (or, I guess your cousin) applied to it. There’s a little federal aid out there all of which is for poorer students except for guaranteed student loan which would be $5,500/year for a freshman. Other than that, there are scholarships, either from the school or outside groups (most outside scholarships are small, like $500). That’s it. There’s no magic way to pay for college and someone has to pay the bill. </p>
<p>Banks give parents loans for college but they have to qualify which means they’ll have to have enough income to pay and be credit-worthy.</p>
<p>Your aunt and uncle can easily fill out a FAFSA and that will qualify their student to take out a $5500 Stafford loan and if they’re credit is good, they can take out Plus loans.</p>