Unfortunately, most parents give up before they even start and assume they won't be eligible. This is exactly what the government hopes you will do so they can keep more of these funds. If you haven't noticed, this has nothing to do with a student's ethnic background, athletic ability, or grades. The reason they do this is to attract the better students to their school. All schools are not created equal and will not be able to give you the same financial aid packages.
Some schools are well endowed and get a lot of money from alumni and corporations.
These schools have more money to give out and are generally able to meet most or all of a student's financial need at their school. Other schools, like state universities, get no private funds and rely solely on state and Federal funds to help fill a student's need at their school. In many cases, these schools leave students short and give them less money than they are eligible to receive. It is very important that you know each school's history of giving money before you ever apply, so you're not blown away when you get a bad financial aid package from your child's top school choice. For example, savings accounts, CD's, stocks and bonds are all included and asked about on the Federal Financial Aid form.