<p>Unfortunately, private disability income IS reported on the FAFSA. And medical expenses are only able to be counted as an offset to income in the amount that exceeds 7.5% income (AGI?) … and insurance costs are not counted in this, I don’t believe (haven’t had to do this recently, so can’t remember off the top of my head). You have to actually present the medical bills, so future bills won’t be counted.</p>
<p>Everyone is treated the same way for sub loan eligibility. The way it works is that each school has a Cost of Attendance for financial aid (COA); this is usually published on the school’s financial aid website. You get an Expected Family Contribution (EFC) when you file your FAFSA. COA-EFC-all grants and scholarships=eligibility for sub loans (up to the maximum for year in school, which is $3,500/$4,500/$5,500).</p>