Our daughter qualified for work-study at another top institution but we advised her not to utilize it unless she felt she could make the time. Given her first-year schedule, she couldn’t. This year (her 2nd year) she opted to do work study and found a very well-paying position with a non-profit. Nice experience for the resume, as well as a way to meet her living expenses. Work study can be great that way. However, it has to do doable in the first place.
A financial aid offer is typically the first of an ongoing conversation. Ditto on the advice to go back to the Fin. Aid. office to see if they can provide a bit more. You should be invested in your education to some extent - after all, you have been invited to obtain a life-changing degree at a top institution, and the opportunities afforded will be enormous - but it has to be an amount that you and/or your family can actually pay. Let them know. When it comes to institutional need-based funds, they have their own calculations on “demonstrated need” that may not conform exactly to the FAFSA-generated EFC. The FAFSA only determines your need for federal funds and subsidized loans and it looks like you are maxing those out.
Speaking of loans: you’ll want to keep the debt to a reasonable level, especially the unsubsidized because the interest accrues to the student during the time in school and so is added to the principal balance. Subsidized is different - the fed. gov’t “pays” (ie waives) the accrued so that the principal balance at the end of your schooling isn’t larger than when you first took out the loan. The amount they give you today is, in present value terms, more than what you will be paying back, so subsidized is a favorable loan - always a great deal financially. So consider taking out 100% of what they offer in subsidized but keep the unsubsidized at some reasonable level - it’s a fair loan but not a “deal”. In future years you will be eligible for a higher value of loans in toto but capping it at some reasonable amount (for example, no more than $20,000 total with as much of that as possible in the form of subsidized) would be the way to go.