Even though institutional methodologies do vary from college to college, they track the Federal Methodology closely. In making decisions about disbursing their own money, most private colleges do count home equity. The house doesn't count. See Myth 5. I'm mentioning this twice, because it confuses almost all parents.
Most private colleges do count the house before they'll give out their own money.
That's how they count the house. It's part of growing up, my kid will do it. It won't happen. This is the same student who's busy getting good grades, enhancing his curriculum vitae with extracurricular activities, practicing a sport after school every day, taking occasional time out for social interactions, keeping his room clean, and working and saving money for college. Not to mention studying for SATs, opening voluminous mail from colleges, and trying to figure out what to do with his life.