If the internship is done through the school (for credit) your child is still enrolled at their school going to be getting financial aid that semester and getting credit. This situation counts toward their 8 terms of aid.
If your child is at a school like Northeastern, Drexel, Dartmouth where student maybe doing internships, while not enrolled in school, there is no aid being disbursed. If this is a big concern, make sure that your child tries to get summer internships so that it does not interfere with the completion of their degree.
If you have a financial change in circumstance, you will contact the school and ask for a financial review.
The school will tell you what documentation you need to submit, layoff/termination letters, they will want to know if you are receiving severance, if yes, what are the terms of your severance package, unemployment, etc.
For health care expenses, they will want to know your unreimbursed health care expenses.