@concernedmom2016 I am not sure how you are interpreting this?
Originally your family contribution was $7148: $5500 student loan, $1200 work study, and $448 parent loan
Add to that the increase in board which has nothing to do with the outside scholarships, it is a price increase for some reason perhaps pertaining to the meal plan she chose? So with that $165 added to the COA your responsibility was $7313.
Now you are saying your responsibility is down to $5480 in student loans. The savings based on adding the $2300 in outside money is $1833, so yes your $467 of her outside scholarships didn’t “count” if that is how you want to look at it, but $1833 did so you are still way ahead.
As far as the $5480 loan is concerned, she certainly does not have to take all or any of it if she chooses not to. First, more than half of that amount must be indirect costs such as books, transportation and misc. How much? She doesn’t have to spend all of that-it is just an estimate and she can spend much less if she is frugal. She can get a term job and easily earn $50 a week which would be $1500, she could earn much more if she really wanted to. Did she get graduation gifts? Did she have a summer job? Are you willing to give any support at all?