Read my response above-- stop touching him sexually and increase his sleep (think of him like a toddler with a set betime and wake up schedule). 12 hours is what a U2 needs (although some need 13 or 14). They need more sleep than any other parrot variety.
Also, aside from petting on the head and neck only, make sure he is not eating too many seeds-- but never change diet cold-turkey, as they will starve in some cases, rather than switch. You need to wean him off of an all-seed diet if that is what he is on. wal-mart food is generally pretty bad...So look into shopping on Amazon if you can, or a parrot store, or even Pet-Smart (although they have very limited supplies of decent food).
Also, avoid sunflower seeds and peanuts. Sunflower seeds can be given as treats, but peanuts contain aflatoxins and they also can harbor fungal spores, so they should not be given at all.
I hormonal male bird can be cage territorial and will often bite the object of their human affection if they are being stimulated long-term.
Barring any medical conditions, the key to regulating hormones will be :
1. 12 hours sleep on a set schedule in a dark space...quality sleep...I know you wouldn't think that this would play a huge role in hormones and behavior, but it absolutely does long term (and it also impacts general health).
2. NO petting anywhere other than the head or neck unless it is for literally 1 second, but not at all for now..
3. No access to even remotely shadowy or dark spaces (boxes, blankets, drawers, low shelves etc)
4. A solid diet (pellets and some seeds-- no peanuts, sunflower seeds as treats), vegetable with small quantities of fruit (too much sugar can lead to behavioral issues). Again, any diet changes must be gradual to prevent starvation in stubborn birds, which is another reason to be weighing him weekly.
5. Anytime there is a sudden behavior change, it is advised that you take your bird to a certified avian vet. That having been said, I know you said money is tight.. I cannot promise you that there is not something wrong with your bird, but if a vet is not an option, start by regulating those presumably raging hormones... No cockatoo should be pet under or along the wings and all should get 12 hours of sleep each night.