I hope you saw my post that I intended to include the sarcasm tag. I don't know how recently you've put a child through college, but the purpose of the FAFSA form is to find out how much money the parents make. A substantial amount of financial aid and scholarship money is only available to students whose parents are not upper middle class or higher in income.
We are doing FAFSA ourselves with our middle class incomes. However, we would never stretch ourselves into the $60K a year education costs when there were less costly options even with FAFSA. That kind of over-reach is the problem, because it increases the demand on institutions if it is happening on a large, market distorting scale.
The financial aid which is achieved through FAFSA, brings up the issue of the rising costs the institutions of learning are charging the public. It is like the old issue of rent subsidies which increase the demand and cause an increase in the price of rent—making the price less affordable. I think this is the root of the problem which charlatans like Zer0 exploit with those who can barely count let alone comprehend Econ 101.