So the financial aid office just e-mailed me saying that they would need verification to see if there is more than one person in my family attending college. I have an older brother who is enrolled in college along with me. However, when I asked him for how many units he is taking (since the application asked for that), he told me he had dropped out for the semester. Now I have to put that I am the only one enrolled in school, even though I had initially put both my brother and me.
“Penalized?” No. If you had been hiding assets or under reporting income than maybe. But a brother dropping out, probably not.
Having your financial aid decreased (possibly) is not being penalized. It is an unfortunate result of the fact that you are the only person in college, which means in theory that your parents can now pay your school the amount that they would have been sending to his. Less need equals less help.