My wife applied for student loans and financial aid etc. And got denied because he still claimed her as a dependant on his taxes. (Even though he never gave her a dime. She even paid for her own braces) Perhaps the best thing you can do is totally cut her off and have her apply for financial aid herself? She'll get better loans than you can get and maybe even get a small grant. Probably too late for this semester, but those are my thoughts.