They do look at some assets, and some schools require the CSS Profile (which provides info beyond FAFSA). Of course, if you don't save anything in a 529 and you spend it all on "stuff", you don't have assets.
I'm sort of only half joking because I have seen folks that scrimped and saved for the kids' education, and they don't get anything for financial aid. The folks who spend every last dollar get a lot more. Doesn't seem right, but that's how it is.
And I'm only half joking about being a Wal-Mart greeter. Think about it - if you have a family income of $120K-$130K, you aren't saving $60K of that each year for college (maybe you would get some aid, but still would be expected to pay $30-35K/year). So if both parents make $60K/year, one is working just to send the kid to school. And it may be tough to squeeze $35K out of the $60K salary after taxes and expenses relating to work. In some areas of the country, you could easily survive on $65K (not here, but many other places).
Maybe after we get the first two through college we'll be greeters when the last one goes to school (first kid is a freshman, second is in 10th, third is in 4th).
And we do have 529 plans for the kids, though I have mixed feelings about this. We started middle kid's plan late because I declared that she was not college material when she was 4. I certainly wasn't on this forum then...didn't expect her to be "gifted".
