Ok. Of course I don’t know all of the details, and which state applies and such.
The mom must have had lower income or higher federal and state taxes than I estimated. I assumed she filed HOH and claimed your D and qualified for EIC, but if D had $10,000 coop income and spent that on her school expenses (assumed because her savings balance was only $500), then mom might not have been able to claim her on taxes, or claim HOH or EIC.
Hopefully your D can get this corrected through FAFSA help or the school can do a correction on their end since they should know of her coop.
Also the assets are not end of year assets. Unless your D did the FAFSA then.
Asset balances are reported as of the day the FAFSA is submitted.