According to Ivey, schools can see where else you've submitted your FAFSA. That may be the only way they know who they're competing against for you. It might be worth submitting the FAFSA to your schools just so they know and might choose to sweeten the deal with merit scholarships. Plus, you can't get federal loans without the FAFSA...subsidized Stafford is one of the sweetest loans around (especially if you go for additional education) and both subsidized and unsubsidized stafford loans are just above prime and capped at 8.5%. Unless you or someone you know is paying for your LS out of pocket, I can't imagine a better lending channel.