So I know someone whose biological father was incarcerated for most of her life and the father’s parental rights were terminated after her mother divorced him. She was able to get full financial aid without supplying his income, but she had to submit documentation that his parental rights were terminated and that he plays no role in their life.
I think that there is a way to terminate your biological father’s parental rights. Do you know if your stepfather adopted you? I believe he could have only done that if your biological father’s rights were terminated. Anyway, you should find out the status of the relationship with both your father and stepfather, and make sure that your mother goes the extra mile to terminate your father’s parental rights. I don’t think it will forgive the money he owes her.