claiming my nephew

My nephew lives with us. We get no support from either parent. His dad has legal custody. I want to claim him on our taxes but his dad says if he doesn't claim him on his taxes that my nephew will not be able to receive federal aide for college. Is this true?

possibly...you should check the details of your nephews legal aid doc's first. usually its the guardian htat will not receive aid money if the guaradian fails to report the dependent, not the other way around as in your example.