The article is pretty self explanatory. It says that a lot of international applicants aren't applying because they probably cant afford the high fees without a loan. Therefore those who are applying can either afford it or are hoping to get some kinda loan. In either case, the college doesn't ask for your financial strength at the time of applying. They evaluate you based on the application you've submitted and nothing else!
The article also says that you have to be a "Strong" international applicant. I doubt that schools would compromise on student quality just because numbers are low. They'd prefer filling the batch with other applicants. Remember that there is no "quota" of international students that schools seek to fill. They look for the strongest students.

You are drawing a horrible amount of incorrect conclusions from the article dude!!

I think given the option most students would like to take loans to pay for the costs...
I was just curious about at what point do schools evaluate an applicants financial situation. I was always under the impression that this is something that comes into consideration once the student is offered an admit..

thanks for the response