Jeanski
Buffalo,#2Consumer Comment
Fri, October 14, 2011
Here's how it works: the Free Application for Federal Student Aid (FAFSA) is submitted and your Expected Family Contribution (EFC) is determined. This figure (which can vary based on the school you attend) determines how much aid you'll be awarded in grants (which you don't pay back), and what you can take out in loans. Every semester the government sends a list of selected students to the school, and the school is required to gather additional information to verify what was put on the FAFSA. That's why they wanted your parents' tax forms. If you are under 25, not married, and not in the military, you are considered a dependent - regardless of whether you are "dependent" on your parents or not.
There is nothing in the verification process that requires your parents to co-sign or sign for a loan. Nothing! And they shouldn't be required to submit to a credit check either.
If the school requires a credit check as part of the verification process, they're probably up to something illegal. Call the Department of Education for guidance on that.
As for finding another school, good luck. Everst won't release your transcript until you pay the money you owe them. And the new school will know about it because the minute you apply for financial aid your file will be flagged. This is all regulated by the government, and not by the individual school.