The FASFA is not just another scholarship application. Oh, no. It is the meta-application, without which most colleges will not give you any financial aid whatsoever. This and the CSS Profile allow a university to take the federal government's evaluation of you and your family's financial situaton, multiply what the feds say you can pay by N (where N can be between ~.5 and 4) and provide you with that much money in university-specific grants and loans.
If you do not, for some reason, complete these forms, you are likely to become a financial-aid victim. The councillors are right--It's in your best interest