<p>I don’t think there is a federal law that says a college can’t give INSTITUTIONAL aid (I’m not talking federal aid) when FAFSA is higher.</p>
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<p>As others have correctly pointed out, the school cannot give out federal NEED BASED aid AT ALL if the school uses the higher Profile EFC. The school could award the full $5500 of UNSUBSIDIZED Stafford eligibility ($5500 freshman annually). That is it. The focus of a discussion with a higher-up in that aid office would be that the family would appreciate a review of the file to see if institutional funds can be used for $14,500 of the $20k gap, and unsub for the remainder. If the school has a policy that does not allow this, the administrator can clearly explain. Otherwise, it is possible that OP might be successful in an appeal … meaning, it is worth a try.</p>