It is imperative that you include colleges that have price tags that are comfortable for your family to pay. Though we were prepared to pay full sticker price for my kids’ colleges, and included some of the priciest private schools, we also made sure that some full ride possibility schools, guaranteed merit schools and low cost options were also in the mix.
Understand that a school can do pretty much as it pleases with its own money. Yes, the financial aid officer has leeway to designate certain exceptions to your case, but though that can mean guaranteed federal money, that comes down to subsidized Direct Loans and Work study in your case in amounts that are not sufficient and have no immediate impact on what you need. You can borrow without the subsidy and find jobs on your own. You are limited to $5500 as a freshman in loan amount.
For the fall 2021 school year, your parents’ 2019 income is what’s crucial. Your parents’2019 AGI is from The 2019 tax return is what determines a lot of your financial aid. That your parents invoked hardship provisions to get the money does not necessarily mean they get to exclude it from income for fin aid purposes anymore than they were allowed to do so for tax purposes. Doesn’t matter what you used the withdrawn money for, you still have to pay taxes on it. Maybe can deduct things like casualty and medical expenses, but simply paying accumulated bills due to other issues is not generally deductible, and not likely to get any exception for financial aid determination either.
That your mother lost her job in 2020, puts her in a position of being a displaced worker and could help reduce the impact of her 2019 earnings, especially if she is deemed disabled. That can change the a FAFSA Numbers but PROFILE schools use their own methodology and numbers. It comes down to each and every school as to how they assess your situation.
You have not been accepted to any school yet, certainly not Duke. If you apply ED there and if accepted, you can discuss that financial aid package they will present and you do not have to withdraw your other applications until you come to an affordable arrangement and accept the admissions offer. If Duke will not give you sufficient aid, you will know that it’s unlikely other schools will either,so having financially acceptable schools, like your state schools on the ready is going to be important. Some of such schools fill up seats fast, so get your applications to such alternatives early.