Ok here is an update.
My hubby went to the financial aid office and he was told you are not alone. It is the state of Kentucky that sent those letters out and has done this to many students. Come to find out it was the cap grant. His financial advisor said that everything was filled out correctly on the fasfa and that he qualifies for other grants too. His advisor stated that MSU has not decided who is gonna get what yet, but that he should go ahead and apply for as many grants as he can. Other wise not to sweat it out and that everything should be ok.
I want to thank everyone for your wonderful advise, I may still follow thru with trying to sell some quilts and other items. Lord we could always use the extra money to feed my fabric habit.
Carrie