What naïve suppositions? I said it before and I’ll say it again: show me where the FAFSA or Profile instructions, or a credible financial aid officer working for a college or university, says to use something other than current fair market value in reporting an asset (taking into consideration debt against that asset), and you’ll be my hero.
No one is resentful of you trying to send your kid to the best school he can get into with the best possible financial aid. The problem is your whining about costs and a system that we all have to deal with, and in many cases have been dealing with for years already. Your situation is not unique.