FAFSA verification caused SAI increase from $1,700 to $8,900 - can I appeal this?

First, take a deep breath. This is actually pretty common with FAFSA verifications and you CAN appeal it. What's happening is the retirement withdrawal is being counted as untaxed income in the SAI formula, even though it was used for necessary expenses. Request a "Professional Judgment Review" from your school's financial aid office. You'll need to provide documentation showing the withdrawal and proof it went to medical expenses (bills, receipts, bank statements). Each school handles these differently, but most have a specific form for special circumstances appeals.

omg this EXACT thing happened to my sister last year!!! her SAI jumped by like 6k because my dad took $ from his 401k to fix their roof. such bs how they punish families for using their OWN MONEY for emergencies. she ended up having to go to her backup school because of it :

You need to submit a Special Circumstances Appeal through your school's financial aid office, not through FAFSA directly. The Department of Education gives financial aid officers authority to make adjustments in cases exactly like yours. Make sure you clearly document that the withdrawal was for medical necessity. Include a signed statement explaining the situation, copies of the medical bills, bank statements showing the transfer of funds from the retirement account, and receipts showing payment to medical providers. The exact process varies by school, but most have forms on their financial aid website or you can request them directly. Don't delay - these appeals can take 3-4 weeks to process.

Fafsa has gotten so much worse with these calculated student aid index numbers... my cousin got flagged for verification too and they counted his parents HOME EQUITY as income somehow?? like they think just because your house is worth something you can magically pay more for college?? the whole system is rigged against middle class families

My daughter went through something similar with her FAFSA verification. We had to provide bank statements, tax returns, W-2s, and write a letter explaining our situation. The schools have discretion to adjust the SAI if they see special circumstances. One school gave her an additional $5,000 in institutional aid to offset the higher SAI, but another school refused to budge. It really depends on the school's financial aid policies and how much money they have available. Start by calling the financial aid office at your top choice school and ask specifically about their professional judgment/special circumstances process.

If you're having trouble getting through to someone at the financial aid office (which is likely during this busy season), I'd recommend trying Claimyr. I was stuck in verification hell last month and couldn't get anyone at FSA to pick up. Claimyr connected me with an agent in about 10 minutes when I'd been trying for weeks. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/TbC8dZQWYNQ. Sometimes having a direct conversation with an actual FSA agent makes all the difference in getting things resolved quickly.

Has anybody ever actually WON one of these appeals??? feels like the system is totally rigged

Update: I gathered all my documents (parents' retirement statements, medical bills, bank transfers) and have an appointment with my school's financial aid counselor tomorrow. They said they've seen this issue before and have a special circumstances form specifically for unusual income that doesn't reflect actual ability to pay. Feeling a little more hopeful but still nervous. Will let you all know how it goes!

Final update: GOOD NEWS! My appeal was approved! The financial aid office adjusted my SAI back down to $2,100 (slightly higher than the original but MUCH better than $8,900). They created an adjustment that excluded the retirement withdrawal since it was used for medical expenses. My aid package is nearly restored - I'll have about $900 more in loans than originally, but I can handle that. Thank you all for the advice and support!

This is such an inspiring success story! Thank you for sharing the final outcome - it gives hope to other students facing similar FAFSA verification nightmares. Your experience really shows how important it is to gather proper documentation and work directly with the school's financial aid office rather than giving up. The fact that they were able to exclude the medical-related retirement withdrawal makes perfect sense. Congratulations on getting your aid package restored and being able to attend your top choice school!