Are schools allowed to ask for bank statements to give financial aid?

I am having a problem with my school, which is cuny. I am under verification from pell, as they claim, but when i called pell I was under no such list. Anyway. I filled out a paper with my family showing how much assets we have. According to our taxes, we make an x amount of income on bank interest. We put in on... show more I am having a problem with my school, which is cuny. I am under verification from pell, as they claim, but when i called pell I was under no such list. Anyway. I filled out a paper with my family showing how much assets we have. According to our taxes, we make an x amount of income on bank interest. We put in on the sheet that we make an estimate of how much we have. When we turned it in, they claimed we have much much more, no where even near what we really have. Now they are asking for bank statements or else I wont get financial aid. Are they allowed to ask for this? I went to another cuny school before and they asked for no such thing. I spoke to a represenative and they said that each school has its own policy. I tried to fight them but they are not budging. Can I have some advice?
Update: I dont want to give statements because its private and i have no interest in taking a loan
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