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?

@Yuki Tanaka 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…

If your father has made retirement withdrawals across multiple years (2023, 2024, and 2025) all to pay down debt, that strengthens your professional judgment case in some ways. You can demonstrate this is part of a deliberate debt reduction strategy rather than just extra income. When approaching financial aid, emphasize: - These withdrawals represent paying down existing obligations, not new spending power - The money was completely consumed by debt payments - Your actual household financial situation hasn't improved despite what the FAFSA calculation shows Document everything thoroughly - get statements showing the withdrawals and corresponding debt payments. Also gather evidence of your actual living expenses to show the family's true financial picture. This pattern of withdrawals might make it harder to argue it's a "special circumstance," but it more clearly shows the systematic financial challenges your family faces. Focus on how these withdrawals actually represent financial distress rather than prosperity when making your case.

@Yuki Tanaka could you clarify?

@Mr.MaximusPrime I believe what's happening is that when the poster's father withdrew money from his retirement account, that withdrawal counted as income on their tax return for 2023. This higher reported income then affected the FAFSA calculation for the 2025-2026 school year, making the student ineligible for the Pell Grant they previously qualified for. The issue is that while this money technically counts as "income" for tax and financial aid purposes, it was a one-time withdrawal used specifically to pay off debt, not an increase in the family's actual ongoing financial situation. The student is asking how to request a "professional judgment" review - this is when a financial aid officer can make adjustments to the FAFSA calculation based on special circumstances that aren't reflected in the standard formula.

@Yuki Tanaka thanks! do you have any more tips?

@Thomas Maxon Absolutely! For your professional judgment request, gather detailed documentation showing exactly how the retirement withdrawal was used to pay off specific debts. Include bank statements showing the withdrawal and corresponding debt payments. Write a clear letter explaining this was a one-time financial event that artificially inflated your EFC. Meet with your financial aid counselor in person if possible - face-to-face conversations are often more effective. Ask if your school has a specific professional judgment form. Also check if you qualify for any institutional scholarships or grants to help bridge the gap while this is being resolved. Finally, be persistent but polite - sometimes these requests need follow-up, so don t'get discouraged if you need to provide additional information or appeal an initial decision.