I can’t answer for all schools, but in my own experience (not top tier, big endowment schools), I wouldn’t have questioned the “why.” I would have assessed based on current situation. I would have wanted a written statement indicating that the parent was not planning to return to work, however (because that would change things). I would have looked at any income … pension, SS, 401k/IRA distributions, and Roth distributions. I also would have wanted to know about assets, including any investments (but not home equity where I worked). If there was a buyout, that lump sum would be considered available to pay for college if it wasn’t in a qualified retirement plan. After looking at the financial situation as it currently stands, I would adjust aid accordingly. That could mean Pell, if it applies. It could mean institutional aid, but it may not, depending on the numbers. It could mean subsidized instead of unsubsidized loan for some of the offered federal loan. It’s possible that nothing would change. But I figure you don’t know if you don’t try.
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