Yes, I have seen this question about DL and MPN before and they were told to not select a state for driver’s license if they don’t have one and leave that section blank.
I am concerned about this student’s situation for several reasons.
Are all costs going to be covered for her/him if s/he gets the federal loans of $5,500?
Work study won’t be available for when the bill is due in Sept. S/he will get paid after finding/starting the job.
What about transportation costs? How far is the college from home? Can the student stay there during breaks? Is cafeteria going to be closed during breaks?
How about books? Does the student have some money to pay for those?
How about health insurance? If parents aren’t citizens and low income they might not have (adequate) insurance that satisfies college requirements.