While the formula for calculating EFC is standardized, families can take certain steps to potentially lower their EFC: - Reduce income: Timing income and capital gains can make a difference in the EFC. - Asset management: Proper planning of assets, such as using them for necessary expenses before the FAFSA filing year, can reduce the EFC. - Maximize tax benefits: Utilizing tax credits and deductions can indirectly help by reducing taxable income.
Consulting with a financial advisor who specializes in college funding can provide tailored strategies for lowering the EFC.
