Open Question: Financial aid was too little, told to do an appeal?

I will be a freshman in college next year. I was given $17000 in grants and a total of $25000 with federal grants. The school is $57000 a year and $25K is practically nothing – I would have to take out $32000 in private loans. My parents 2009 income tax had my mom’s wages and 6-months of my dad’s wages (he was laid off). So during the 2010-11 school year, my father will be unemployed and my mother will be part time. I also have medical expenses that need to paid off. I called the financial aid office and they told me to write an appeal. I have no idea what that is how to write one. The school also has a form that I can fill out with my parents 2010 expenses and they can award me more money, that is if they think I qualify. The financial aid lady told me the Special Circumstances form is better, but I really don’t know if I should believe her. She seemed mean. Basically, what is an appeal and what are my chances of getting more money, way more money? Should I fill out the Special Circumstances form instead? Do you guys have any tips or personal experience like this? I need all the help I can get. Thanks a lot!