There are plenty of factors that go into the final Expected Family Contribution (EFC), so getting the number down as low as possible is often a game of changing the inputs. Here’s a quick EFC reduction tip…more after the jump
Reduce Student Assets – when a student is classified as a dependent, its important to keep in mind that assets (cash, savings, bonds) that belong to the student are taxed at 20%, as opposed to independent and parents which are tasted at less than 6%. So getting the assets down is important. Remember that the FAFSA asks for the assets you have on hand the DAY YOU FILE IT! So get those assets down, by moving assets away from students by giving them to other non-household family members. Clear out student bank accounts, cash out savings bonds, and ditch every dime you can get away with. The EFC is the number that makes all the difference, so use every tool in the arsenal to ensure it is low as possible.