<p>My house recently had flooding that did around $40000 in damage, and my dad had to take all of the money out of his 401K plan to pay for the damage because our family didn’t have flood insurance.</p>
<p>Could that potentially be considered a circumstance that would allow for more financial aid?</p>
<p>Thank you!</p>
<p>In most situations withdrawals from a 401k are income. It is possible that the school MIGHT not count that withdrawal as income because of the damage to your home. However, this might not translate into more aid because we have no way of knowing your schools aid policies OR your family income which is what aid is primarily based on.</p>