As far as your income, is 7k your working income or your total income?
Grants/scholarships can be considered income if they are given to you to use towards college - not sure if they are paid directly to the school.
Make sure you include that.
Congrats on being in school with no loans by the way!
@Anonymous wrote:Your salary is what your income tax form says... any and all money that you took in is your salary.
This!
Just because you're spending your income, doesn't mean it's not income. You still have money coming in, and as long as you're spending less than you're making you're fine. 
If you work, get any scholarships/grants (any money you don't have to pay back (I.E Cannot declare student loans or anything like that) you can count that as income. If you have an actual job, your income (if they ask for proof) can be shown through paystubs and stuff, and if you get scholarships and whatnot you can request a 1098-T from your school.
I'd update your income amount.
Just like mortgage/rent, car loans, anything, your income is exactly that - what you have coming in - doesn't matter what's left after you pay your bills (if your in the red or the black it doesn't change your income)
I'd update to show exactly what your making - which appears to be at least double what they think you have. I'd ask for a recon and state that you miscalculated your income - they may ask for proof but if you have a job/grants/etc that will be very easy to prove to them.
