My mother-in-law is currently enrolled in a community college this semester. She had planned to get student loans to help pay for things so she could quit working full time. It was just discovered that the school does not accept any student loans (federal or private). She does not qualify for any financial aid either. It is my understanding the school got in trouble over student loans in the past and they had to quit accepting them. I don't understand why a public college would not be required to accept student loans. One would think all that is required of the school is to accept the money and report to the lender that the student is in good standing. Are there any options other than a personal loan from a bank? Maybe a bank that would do private student loans, but send the money directly to the student?
It may be helpfull to name the school to get a quality response. If they got themselves in trouble with the gov't for their student loan practices, I'd question why she wants to go there and the overall quality of their program. The little information you've given us points in the direction of a diploma mill that will have a negative ROI
The most likely reason the school is stop accepting fed student loans is because the default rate was too high. That is not necessarily a bad a thing. By opting out the school maintains eligibility for the pell grant.