It does save to the same folder as the parent form.  It just won't pick out the student ID to send it on to the student's folder with the workflow built onto the Incoming Documents folder.  The parent form goes on to the student's folder, the attachments linger behind.  I can move them manually after they are there.  It would just be nice if they filed themselves. Maybe I shouldn't configure the fields for the attachments?

Let me make sure I understand correctly.

So both parent form and attachment are initially saved to 'Incoming Documents' folder by Forms, then there is a Workflow to move them to corresponding student's folder, right? If so, how does the Workflow figure out the student ID for the file?

Looks like just to make sure the workflow can figure out the student ID for attachment to move it to correct folder.

Alternatively, specify the path for attachment in Forms, by selecting 'Other location' and configure the path with student ID variable.

I see where I can choose Other Location but I am not sure how to do this part - 

Alternatively, specify the path for attachment in Forms, by selecting 'Other location' and configure the path with student ID variable.

Also am I making these changes on the file tab or the attachment tab?  Thank you!

After choosing 'Other Location', you can specify the path in textbox below, where you can use variable as part of the path from variable picker on the right.

For instance, if the Student ID variable is Student_ID, you can configure a path like 

\Incoming Documents\{/dataset/Student_ID}

so that attachment will be saved to \Incoming Documents\123456 when Student ID is 123456

If you'd like to continue using Workflow to move the parent form, then just configure on attachment tab is fine. While I think it would be easier to manage if configure on the form tab and then choose 'Parent form location' for all file uploads, so they will always be in same folder (though you just have 1 now).

I did that and the form from Laserfiche was filed correctly.  The attachments (which have the student ID in the name - in this instance it is my test account of 0) are still in the folder in Incoming Documents.