Relax. The school didn’t decide the rollover amount was income - they had to assume it was, and you have to prove it wasn’t. This is because the info provided for documentation of your taxes (either a tax transcript or the IRS DRT) did not indicate that it was a rollover - the rollover “income” is reported, but the way the tax transcript and the IRS DRT work, there is no way to know it was from a rollover. (Back when a paper copy of the tax return was submitted for verification, it DID say “Rollover” … the tax transcript and the DRT do not have that notification.) You did the correct thing by sending the documentation to prove that it was a rollover. The aid office will remove the income manually for the rollover amount. If they don’t do it, you can follow up with them to make sure that your information didn’t somehow get overlooked. In the end, though, the rollover amount will have to be manually removed by the aid office.