<p>Them’s the rules. On the other hand, getting any large amounts of grant money is not that easy from a FAFSA only school ,and they certainly have the right to ask for more info if they want it before doing so. A school can do what it pleases with its own money. However, for those schools that guarantee to meet need or do meet close to all need, PROFILE is usually needed and this sort of thing is quickly elimnated when that form has to be filed as business deduction and the value of the business as well as business assets are taken into account. </p>
<p>What is usually gained in a situation like the OP’s is that maybe some of the loans can be subsidized. There are a lot of niches like that in the fin aid forms, and a number of unfair situations. I personally know some families who got PELL with NCP’s earning a small fortune. If you plan it out, you can do this sort of thing. On the other hand a single parent’s asset allowance is less than half of a couple’s. Go figure.</p>