Question on mortgage and college loan caps

Got a question for you guys… I remember vaguely a post saying that college loans and mortgages are considered together with a cap on borrowing. Can anyone give me the rules?

Specifically, let’s say that you have a kid who wants to go to a top-tier school and easily gets in. Let’s assume this school is a good match academically, but of course, it costs $65K/yr, and with that kind of school, there are no merit scholarships, only need-based aid.

Let’s say that parents have a good middle-class income, but parents have recently bought a house at maximum mortgage borrowing (40%).

What are the options for the kid? It sounds like most loans need cosigners. Even if the parents were crazy enough to co-sign, can they? If so, for what percentage more?

Are parents able to get out of the cosigning when the kid reaches a certain age? What’s to stop the kid from coming home and just playing video games and not paying off the loan at all?

What if the kid really wants to go to this college, but parents refuse to cosign even if they could do so? What are the kid’s options?

There’s usually a max debt to income ratio. I thought we give out student loans like candy now?

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