<p>My parents want to buy a new house that's worth about a million dollars, thus burdening us with a huge mortgage. They think this will get us more financial aid. Does it?</p>
<p>You are going to have to investigate this on a college by college basis - some exempt equity in your primary home, but most do not.</p>
<p>Your mortgage debt will not figure into financial aid -only assets. Colleges don't care how much you owe - only how much you own and earn. Best technique - be debtfree so that income is available to pay for school! IOW buying a big house will not help you get more financial aid.</p>
<p>As ohio_mom says, though, your <em>equity</em> in your home is considered into the equation by many schools, with the expectation that you will be able to take a home equity loan against that equity as part of college funding options. So your <em>debt</em>/mortgage will not matter; the <em>equity</em> in the house probably will.</p>