Even if the one-time income is excluded, it will count as an asset if you still have it when you file the FAFSA. I have seen this scenario result in increased aid, but I have also seen it make no difference in aid (because the EFC was still high enough to preclude aid at that school). The individual family circumstances and the aid policies of the school make this a YMMV situation. Best advice: Talk to the school financial aid office.