No need, but still submit FAFSA for minor scholarships?

Is there any point to sending the FAFSA if our student does not need loans or work study? There is the possibility of departmental scholarships but I am afraid that if our financial position is known that it might hurt him in the decision process. One financial advisor suggested that letting the school know that you are well-off could be a plus in terms of admission decisions but I am not sure about merit scholarship decisions.

The departments will not know your FAFSA results. Only the FA office will.