Help me understand how Lower income but Frugal Savers are being penalized by NEW College formula...

Regarding references upthread to the Roth IRA, while it is true that an amount in the Roth would not be considered an asset, withdrawals would be treated as income. So, if you had to repair a roof or buy a car, your income would go up by the amount you withdrew. Income is assessed more heavily than assets in the EFC calculation.