do people get into student loan debt because they make too much money to qualify for need based aid?

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  • Lili
    Lv 7
    3 weeks ago

    My aid was need-based, but it included loans. Most need-based financial aid packages do.

    • martha3 weeks agoReport

      do you have the option to decline them and get more aid?

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  • 4 weeks 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. 

    • martha3 weeks agoReport

      The unsubsidized loan is non need based the parent plus loan is non need based including the grad plus loan the only need based loans is the federal stafford loan and sometimes a institutional loan depending on the school  which I can decline and be eligible for more aid

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  • di
    Lv 4
    4 weeks 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.

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    • Lili
      Lv 7
      3 weeks agoReport

      My financial-aid packages included both loans and work-study jobs.  It wasn't a matter of "either or".

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  • MS
    Lv 7
    4 weeks 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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  • nancy
    Lv 7
    4 weeks 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.

    • martha4 weeks agoReport

      First of all I think your comment is completely inaccurate and just incorrect because the whole student debt problem in the us is about students who don’t qualify for need based aid and rely on student loans and second you most be the most pathetic person I I met on yahoo answers for Many reasons.

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  • Squid
    Lv 7
    1 month 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.  

    • Not true as all aid must be accepted with a signature by the student. Only those who don't read their awards may think this. Do you understand how aid works? 

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  • P
    Lv 7
    1 month 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.  

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