@idahopho - My Co-Op kid did not lose any Fin Aid. Actually, it turned out great - they paid off some previous loans, and after graduation paid off all student loans within a year and a half.
re: Increasing Financial Aid without special circumstance - I can’t speak to your specific circumstance - BUT - Write the letter! If you do you MIGHT get an adjustment. if you do NOT write the letter, you will NOT get an adjustment.
Good Luck!