^^
I agree. I think the dad thinks that the school is going to give $25k per year in need aid, plus the DD has the merit scholarship, and then he’d pay the rest out of his 529. And likely he believes that he’ll turn his business around to help with the later school years.
But…mom has assets, dad has a business, stepmom may have income, and that may mean that the DD won’t qualify for any aid, especially since a merit award has already been included.