It is sort of earnings. It’s deferred earnings. It was protected earnings until your dad took it out. So now it counts are earnings.
If your dad does this each year, it will continue to affect your aid. If this is a one-time thing and you can’t afford college now, then ask your school if you can take a leave of absence for one year. Then don’t take any classes anywhere, just work and volunteer and return the following year with the aid you need.