The child is 18years old, full time college student.

make more than $4000, but less than $6000 last year, and he had been living with us for 7 months before he moved in the college. He need to apply Fedual State student loan. what should we do?
1. Should he file independent?
2. If he did, could we still claim him as dependent?
3. If we claim his as dependent, does it hurt his loan amount? Last semester, he only could get about $1000 Fedual student loan. I think maybe because his parent claimed him as dependent
Thanks