update us on what happens!! i hope ur daughter gets some help with this situation!!

I'm so sorry this happened to your daughter - what a devastating betrayal of trust. While others have given great advice about emergency funds and legal options, I wanted to mention that she should also consider contacting her state's consumer protection agency or attorney general's office. Some states have specific protections for educational loan misuse, especially when there's documented evidence of the intended purpose. Also, if she has any joint accounts or financial ties with her father, she should consider protecting those immediately. Sometimes parents who misuse education funds will also access other shared financial resources. The fact that he's flaunting the boat purchase on social media while his daughter faces homelessness is particularly egregious - make sure she screenshots those posts as potential evidence. I really hope the Dean of Students and financial aid office can provide some emergency relief tomorrow!

Don't forget that scholarship reporting can also depend on the scholarship provider's classification! My research stipend was considered "compensation for services" rather than a scholarship, so it was reported on a W-2 and treated completely differently for tax purposes. If your community service award was given in exchange for work you performed, you might want to check how they're classifying it.

As someone who just went through this process last year, I can share what I learned! The key thing is understanding the difference between reporting for FAFSA vs taxes: **FAFSA**: You don't manually report previous year scholarships/grants on your renewal application. The system already tracks your Pell Grant usage (there's a lifetime limit), and schools report institutional aid directly to the Department of Education. **Taxes**: This is where it gets tricky. You need to determine how much of your aid was used for "qualified educational expenses" (tuition, mandatory fees, required books/supplies) vs everything else. Only the portion used for non-qualified expenses is potentially taxable. Given your situation - $1,800 refund plus the $2,500 community award - you'll likely need to report some amount as taxable income on YOUR tax return (not your parents'), even if you're still their dependent. Pro tip: Keep detailed records of all your educational expenses throughout the year. This will help you maximize what counts as "qualified expenses" when tax time comes around!

Thanks everyone for all the helpful advice! I just got off the phone with the financial aid office, and they actually recommended we start the Parent PLUS application process now, rather than waiting. They said we can submit the application even before officially accepting the aid package, which gives me some peace of mind about the timing. They also mentioned they have an institutional payment plan that might help us reduce the loan amount we need to take out. Going to look into both options this week and weigh the pros and cons.

Great to hear you got some clarity from the school's financial aid office! That's always the best first step. Just wanted to add that when you're comparing the Parent PLUS loan vs. the institutional payment plan, make sure to factor in your family's cash flow situation too. The payment plan might save you on interest, but it also means larger monthly payments during the school year. Some families find it easier to spread the payments over the longer loan term, even with the higher interest cost. Also, if you do go with the Parent PLUS loan, remember that you can always make extra payments toward the principal to reduce the total interest paid over time. Whatever you decide, sounds like you're being really thoughtful about weighing all your options!

UPDATE: I called my daughter's college financial aid office this morning. They confirmed that for Michigan residents, the state aid office DOES automatically receive FAFSA data and no additional application is needed for the Michigan Competitive Scholarship or Michigan Tuition Grant. However, they mentioned that students still need to create an account on the MiSSG (Michigan Student Scholarships & Grants) website to view their award status and accept the funds. So I'm having my daughter do that today. Thank you everyone for your help! It's reassuring to know we're on the right track despite all the technical issues.

As someone who just went through this process with my own kid, I can confirm that the broken state aid link is unfortunately very common this year. The new FAFSA system has been plagued with technical issues, but the actual data transfer to states does happen behind the scenes. What helped me feel more confident was creating a simple spreadsheet tracking all the important dates and requirements for our state. I listed the FAFSA submission date, state aid priority deadlines, and any additional forms needed. It made me feel more in control during this chaotic process. Also, don't forget to check if your daughter's high school guidance counselor has any state-specific resources or contacts. Mine had a direct line to someone at our state aid office who could verify receipt of FAFSA data much faster than the general helpline.

Just to follow up on your situation - once the correction goes through, there's another important step: contact each college's financial aid office directly (as others have mentioned). Let them know about the correction and ask if they need any additional documentation. Some schools might ask for a Dependency Override Appeal form, even though in your case you're actually confirming his dependent status, not trying to override it. Be prepared with tax documents showing you claim him as a dependent.

That's fantastic news! So glad you were able to get through to FSA and that the correction option is now available. Two weeks should be plenty of time for the correction to process, especially since you caught it early. Just a heads up - keep checking the status regularly after you submit the correction because sometimes there can be additional verification requests that pop up. And definitely save screenshots of everything throughout this process in case you need to reference it later with the school. Hope everything works out smoothly for your son's sophomore year aid package!