Is the equity in our house considered an asset that reduces financial aid packages?

Yes, but only for the more prestigious state colleges, like University of Michigan and private colleges, like Harvard, Stanford, Johns Hopkins and others.  For a list of these schools, go to:  https://profileonline.collegeboard.org/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv.

EPR will show you how to structure your college strategy in order to work with the impact that home equity may have on your ability to pay for college.