I've been navigating the Student Loan Maze for over 8 years.
When things start to become frustrating, send your child to the Financial Aide Office. The advisors can hook you up with private loans. Luckily, $3,000 is not a lot of money, so they should be able to assist. Don't be afraid to ask questions.
Unfortunately, it is easier for the student to borrow money after the age 22, then for the parent to borrow when the student is 18. Best gift you can give your child, is fiscal responsibility. At age 18, get him/her a credit card in his/her own name and teach them to use it responsibly. Then by age 25, provided they have been responsible, your child will have 7 years credit history, which helps in achieving a high credit score since 30% of the score is history. As an undergrad, I only used my credit card for groceries and medical. I always paid it off in full, and at age 25 I have a FICO in the 700s. When I entered graduate school, I was able to borrow $80,000 from the Fed at a responsible interest rate (8%) with minimal stress.
Think of student loans as a giant board game. You just need to learn the rules, use strategy, and possibly delay gratification. Many of my classmates entered undergrad at age 23, so they could apply for loans as independents. They were able to get more loans at better rates. Many schools offer BA/MBA 5 years programs and having a MBA from a good school at age 28 is no small accomplishment.
