Ok, look at your parents’ 2016 tax return. What form is it (1040, 1040A)?
If it’s a 1040 form, what is listed on line 7, line 15a and 15b, and line 37?
If it’s a 1040A what is listed on line 7, line 11a and 11b, and line 21?
What is all of your aid comprised of at Oswego?
You said costs are $31,000
You have $18,000 in scholarships?
How much of the scholarships are not dependent on income?
And last year you had around $5,000 in Pell and $5,500 in loans?
Did your parents pay the rest?
Why did your dad withdraw that money from the retirement account?
If he didn’t take the money out and put it in another retirement account within 60 days (rollover), then it becomes taxable income.
And FAFSA will count it as income too.
If he withdrew the money because of an emergency, for example repairing the house after hurricane damage, then maybe the school can use professional judgement to disregard that one-time withdrawal.
But you have to reach out to the school’s FA office.
And why is that just coming out now that your income and EFC is higher? Did you just do your FAFSA now? You should do it early, especially if you are low income.