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This actually makes sense to me. Instead of you getting grants that were put towards housing, you got the housing for free, so you ended up at the same place.

Well, the financial aid package was given as total expenses (tuition, housing, work-study, etc.), so it wasn't defined which expense the grants went towards. Since I had 90% loans and small grants, it was annoying to have the amount of grants reduced. I essentially took on another job (being an RA) and ended up not benefiting financially from it; the OPs daughter did get a financial benefit from it.
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