FAFSA, which does not consider primary home equity in setting the FAFSA EFC, is predominantly used to determine educational aid from the federal government, and, to a lesser degree, state governments. Profile is used by a relatively small subset of schools to distribute institutional need-based aid. Profile schools can use whatever methodology they choose to give away their own money. I don’t find it unreasonable that many of these schools want to know how much equity an applicant’s family has in their primary residence in order to view a larger picture of the family’s finances. They are not trying to f people over – they are doing their due diligence and trying to allocate a limited resource in the best and fairest way they can.
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