I was wondering, because of some of my friends are even able to get money back for attending college.
I wasn’t aware that any college was allowed to automatically accept loans in the FA package. My understanding that students had to complete the Master Promissory Note and go through counseling before they (the students) can accept federal loans; if a college is skipping that step that might actually be against the law.
As far as inclusion in packages, that’s up to the college. Any student who completes the FAFSA can borrow an unsubsidized Stafford loan. They have to go through the process to accept it though; I really don’t think the college can accept it on their behalf.
No school automatically accepts loans for a student. They may be offered, but the student has to accept the loan and go through loan counseling and sign the master promissory note. If your friends are getting money back for attending college and some or all is loan money, you do know that’s not free money, they have to pay it back in the future.
Some of the higher tier colleges have enough endowment money that they can meet all need without requiring/suggesting that the student take any loans.
Other schools cannot afford to be so generous in meeting the financial need of every student. Of they feel that the student/family should have some responsibility for their education. As other have pointed out, they offer loans as part of the package, but if the student can come up with the funds without a loan (summer job, generous relative, outside scholarship, etc) they are not required to take the loan (they do have to come up with the amount of money suggested in the loan stated on the financial aid offer).