I'm a dependent who has always qualified for the pell grant since only one parent (my father) has an income. My father withdrew from his retirement account in 2023 to pay off debt. Now they are saying I am ineligible for the pell grant for the 2025-2026 school year because retirement account withdrawals count as income, even though this withdrawal went only towards the debt and not at all towards my education or household needs. How should i go about my professional judgement to get my grant back?

@Jamal Brown Thank you so much for your reply! What if the retirement withdrawal to pay off debt wasn’t a one time thing? He withdrew in 2024 and 2025 too, all of this money went towards debt…

@brianna rodriguez Multiple years of retirement withdrawals do make the situation more complex. Financial aid offices might be more hesitant to approve a professional judgment if this appears to be an ongoing financial strategy rather than a one-time unusual circumstance. However, you can still make a case by emphasizing that these withdrawals were specifically for debt reduction, not actual disposable income. Document how each withdrawal directly paid specific debts and explain the debt reduction plan. If possible, show that these withdrawals are part of a finite debt elimination strategy with a clear endpoint. The key is demonstrating that despite how it appears on paper, these funds didn t'actually increase your family s'ability to contribute to your education. Also mention if the debt payments have improved your family s'financial stability moving forward, which could strengthen your case.

@brianna rodriguez @Jamal Brown Another angle to consider - you might want to ask your financial aid office about appealing based on special circumstances "rather than" just professional judgment. Some schools distinguish between these processes. Also, if your father s debt'payments have significantly reduced monthly obligations like credit (card minimums , document)those monthly savings to show improved cash flow going forward. This demonstrates that while the withdrawals look like income on paper, they ve actually'improved your family s financial'position for supporting your education in future years.

@brianna rodriguez I d'also suggest gathering any documentation that shows the debt burden was preventing your family from contributing to your education in the first place. For example, if high monthly debt payments were eating up most of your father s'income, collect old credit card statements or loan documents that demonstrate this. You want to paint a clear picture that the retirement withdrawals were essentially robbing "Peter to pay Paul rather" than creating new disposable income. Also consider asking your school s'financial aid office if they can do a forward-looking assessment - since the debt is now paid down, your family s'actual ability to contribute to education costs may have improved, which could help your case for future aid years.

@brianna rodriguez One more thing to consider - if your father is still working and plans to stop making retirement withdrawals once the debt is fully paid off, make sure to emphasize the temporary nature of this situation in your appeal. Even though it s'happened multiple years, if there s'a clear endpoint like (debt "will be fully paid by X date ,")that strengthens your case that this isn t'permanent income but rather a specific debt elimination strategy. You might also want to calculate and present what your family s'normal "income" would be without these withdrawals to show the financial aid office what your typical eligibility should look like. Some schools are more willing to work with families when they can see a clear timeline for when the unusual financial circumstances will end.