Private School Financial Aid

Schools each use their own formulas, but almost all factor in debt, costs of care for other children or parents, and other financial obligations. It's definitely not just a snapshot of income, but it does factor in things like home equity, savings, etc. as well. It is always worth applying to see.

After one round of applying and not receiving financial aid at a local K-8 private school, I think they look at the entire household financial picture including savings, debt, and income. The committee can and will also consider intangible factors such as what your family brings to the school in terms of volunteer strengths or underrepresented groups. Each school no doubt has their own additional factors which they may use and I'm sure the admissions staff can provide more information unique to their school.

They take everything into consideration. If you need the help, you should apply. 

They look at the whole picture but many school limit how much "luxury spending" they allow one to offset their income and assets by. So for example a high earner with high mortgage due to a luxury house would not get to count all of the high mortgage against the earnings, while a high earner living in expensive local area would allow to offset more for the mortgage amount since the house is average for the local area and not a luxury.  I have friends who did not qualify despite living paycheck to paycheck because they had a work from home spouse and so the school attributed income to the non-working spouse (I was told it is the cause since having stay at home spouse is a luxury and it evens out with the families with two working spouses who have to pay childcare).  So overall most financial officers look at various factors, though what they focus on vary by the school.