<p>MomfromPA, it sounds like PHEAA may be a little more helpful in your situation. Their website (not updated for the new FA cycle) says:</p>
<p>Applications from students whose parents had a change in employment status, separated or divorced, or suffered a loss of untaxed income are processed on estimated 2008 income, since the Agency realizes that the 2007 income reported on the application no longer reflects the family’s ability to finance educational costs.</p>
<p>I’m not from PA but sounds like your new income may reduce your EFC and maybe a state grant would be available - they’re cryptic on the income threshold.</p>