do people get into student loan debt because they make too much money to qualify for need based aid?
- LiliLv 78 months ago
My aid was need-based, but it included loans. Most need-based financial aid packages do.
- GypsyfishLv 78 months ago
Financial aid packages almost always include some loans, even for need based aid. The loan is based on the idea that after getting an education, the person will be making more money and can pay off the loans. I know students with both need-based aid and scholarships, and they all have some loans in their packages.
In my state, there's a lottery-funded scholarship that all students a good GPA in high school qualify for. It doesn't cover living expenses, but it does cover most of the tuition. If other states would do that, it would lessen the student loan burden without increasing taxes.
- diLv 48 months ago
The FAFSA application asks every student if they are interested in "work-study". Work Study funds are awarded instead of loan funds. If a student chooses to attend a college that costs more than grant and gift aid and their parents can pay, they turn to student loans... they could work part-time to pay their bills, but many students don't - they rely on student loans to pay their rent, utilities & living expenses instead of working.
- MSLv 78 months ago
People usually take out loans because they didn't qualify for other forms of need-based aid. Some students are very responsbile with the loans they take, live frugally, and are able to pay them off quickly. Loan companies will often offer students more in loans than what they need to cover their direct costs and basic living expenses, and many students accept those loans because they can live a little better that way. But they end up borrowing much more than they should, and wind up heavily in debt by the time they graduate.
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- nancyLv 78 months ago
People get into student loan debt because they make the choice to attend a college that is more than they can afford. People who make too much money to qualify for need based aid actually often have less debt than students who qualify for need based aid. This is because aid usually doesn't cover the entire bill, so even with generous aid, most students do have to borrow to cover the full cost. Those with higher incomes generally can afford to pay some of that cost out of pocket or with savings. Those with lower incomes generally have to borrow to do it. Taking on some debt to finance an education can be a good investment in the long run, just as taking on a mortgage to finance the purchase of a house can be the foundation of a family's wealth. But too many students take on levels of debt that they don't need to because they make choices about education without doing enough research into what they can actually afford. Unfortunately, that burden falls on need-eligible students just as much as it does on their wealthier classmates.
- SquidLv 78 months ago
No, they get into student loan debt because they think need based aid is free money. Or one of many other things that students misunderstand about how fafsa and financial aid works.
College is free if you do it right.
- PLv 78 months ago
There's always a limit to whatever aid is provided and most colleges will exceed that limit quite easily. People are not always smart about choosing an affordable college, but rather just go where they perceive will give them the best education regardless of cost. Also be mindful a lot of "aid" is provided in the form of federal student loans, so don't assume you won't have to pay it back. Otherwise if you come from a family that's well off it could disqualify you also even if your family declines to help financially.