If you're referring to me, yes, they totally rejected cosigning a private loan. My school had its own independent program for this, and their credit was not exactly a problem (that year their main band issued them an unsecured note for more than 4 years of the total costs; ironically to set up a computer system, the brand of which I researched and specified as about the last thing I did before going to the university).

A bit more: they were quite determined to make sure none of us graduated from college, with one exception that proved the rule and another than paid her way through a community college level 4 year school, the sort that rents textbooks and was literally on the other side of a creek sharing a border with us. The other 2 of us were more ambitious and ruthlessly crushed.

The system assumes good will on the part of parents, and pretty much has to, to avoid free riders.