In a few days, I should be receiving approx. $80K from my fathers estate.  I have a son who is going into 11th grade and plans on continuing to a 4 year school to pursue Engineering.  The balance on our home is $80K.  My husband wants to pay off the house, but I want to save for college.  We are currently 6 years into a 15 year mortgage.  I also have a 13 year old that will be headed to college in 5 years.  

How will having either savings, or owning our house outright affect my sons ability to receive financial aid?  Although we are "middle class", I don't see how we can afford tuition without financial assistance.