Pay off as much debt as possible, including auto loans, home loans and credit card debt. Debt is not factored into the EFC calculation; only assets are calculated. Spending down debt not only gets rid of some assets that would be used to calculate the EFC, but it also reduces your payments due to interest rates.
Send multiple children to college at once. If you feel that you cannot afford to send a single child to college because of your EFC, wait until more than one child can go to college. The EFC is calculated on the basis of how many family members are attending college. Having more than one child going to school at the same time will reduce your EFC.
Make expenditures that can use liquid assets. If you have been planning to purchase a new car or make a costly repair to your home, spending the funds before the EFC is calculated will help to reduce your EFC liability. The EFC is calculated when the student submits his Free Application for Federal Student Aid (FAFSA), so make any large expenditures before this form is filed.
Increase your contributions to your retirement fund a few years before college comes. Retirement assets are not factored into the EFC, so a retirement fund is a way to shelter assets from the calculation.
Encourage family members to wait to give large gifts of money to the student until after she graduates. Any assets the student has during her time in school will be factored into the EFC. Large gifts after graduation are just as useful to a student who can use the gifts to help repay some of the student debt she has acquired.
Do your taxes early before the FAFSA is due, such as in January or early February. Because the FAFSA asks for an estimated earnings value based on your previous year's earnings, a finalized tax statement can help to prevent any overestimation of income that could result in additional EFC liability.
Consult a tax adviser who can file your taxes in a way to minimize EFC. For instance, filing a 1040A or 1040EZ form as opposed to a 1040 if you earn under $50,000 per year will automatically shelter some assets from the EFC. Similarly, if you earn under $15,000 per year and file a 1040A or 1040EZ, your EFC will be 0.
Delay college. Adult children over the age of 24 and those who are married prior to filing the FAFSA are considered independent and do not require an EFC. Note that this is in no way connected to your child's dependency status as reported on your taxes.