They did that 30 years ago when I went to school. I didn't qualify for the BEOG (replaced I believe by the Pell Grant) because my parents owned their home. It didn't matter that I had 6 younger brothers and sisters living at home.
I never understood the amount the university expected parents to give for their kids education. It seemed like they expected 20-30% of gross income. I guess they expected the family to only live on Mac and Cheese while their kid is in college.