It is not quite so simple as just reporting or not reporting parental income... Yale uses the FAFSA information as well as Need Access, which from what I can tell, is also a kind of federal government evaluation of need. Need Access asks you to report on a wide range of information (like your parents' rent, the car they drive) that informs the impression of your assets. It is also not simply your parents' objective dollar assets that get weighed, but you are also asked what they have contributed in the past and what they will contribute in the future. Parent income on the surface seems to undermine the claims a student without significant personal assets could have to financial aid, but if in truth you are reporting the degree that parents contribute to your life expenses. The University, I am guessing, will take this as a sign that one's parents are more capable/amenable to contributing to graduate school than a kid's parents who have never contributed anything to their child's education. I'm curious how it is actually formulated, but that's all I know, and still waiting to see what my own situation is.