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Schools that look only at need do so because the VAST majority of applicants are already academically competitive, and would all qualify for merit-based scholarships. The Ivy League (which ARE NCAA Division I-AA) does not offer athletic scholarships because the mission is to support "amateurism in athletics" and to put academics first, and offering $40K packages to someone because they play football isn't supporting that mission. With that in mind, I have absolutely no problem with schools offering need-based packages ONLY. If someone who's in the middle is willing to work/take out loans in order to go to Harvard/Yale/Princeton...go for it.
Oh yeah...ANYONE can take out student loans. It doesn't matter income...but public schools can't offer federal loans to students who don't qualify for financial aid, but can offer federal or private loans to their parents.
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