Turned down for Unsubsidized Stafford Loans-Long and Whiny.

First, a little bit of background:
8 and odd years ago, I attended a four year school on a mixture of
scholarships, a Pell grant, and loans. Unfortunately, I totally blew
that, and went into default. Three years ago, I paid off my loans. While
I don't owe anyone anything, the defaults still exist on my credit
record.
Now, recently, I decided to actually return to college, by way of a
local community college. Unfortunately, I can't afford to pay out of
pocket for this (lost my job) .On having my FAFSA processed, I found
out:
1. I don't qualify for need based aid (based on earnings for the
2002 tax year). I don't have a problem with this, and expected it.
2. My past default is being used by the college as a reason to deny
me unsubsidized Stafford loans, effectively putting the kibosh on
college for the next six months to a year. I did not expect this.
Everything I read stated that if one tier of aid isn't available, you
qualify for the next. Apparently not. I learned of the Cohort Default
Rate, and what seems to be a silly way of controlling a schools Default
Rate.

Now my questions.

1: Shouldn't we put away this idea that everyone qualifies for aid?
Apparently I don't. People convicted of drug related offenses don't,
unless they meet specific conditions in regards to rehabilitation, etc.
And people who are actually in default don't.

2: Is this practice of putting a schools Cohort Default Rate above
the potential student common? If so, is it ubiquitous? Maybe I should
try four year schools, and possibly other community colleges?

3:If it is common, and a good majority of schools have turned a life
altering, monumentous act into applying for a credit card, then how can
I deal with this? Bickering with the credit reporting agencies is an
option. One that I'm currently taking action on. But still, if the
Financial Aid office wishes, they can look into your history by means of
the DOE. So even that may not be a solution. Yes, there are
scholarships, yes there are taking on two jobs, and so on and so on. But
to be frank, I work two jobs as is, and find that I don't have time to
do things such as reading, writing and arithematic.

Please feel free to reply by email, or on the group.

With regards,
ptaav
ptaav@hot mail.com