How do I decrease my EFC?

goaliedad
Fri, 11 Jan 2008 21:08:11 +0000

rainmama,

Just a little confused about your question.

I will mention that with Roth IRAs I understand that you can withdraw your principal (not earnings) 5 years after they are initially put in the account without a tax ramification. Now they do show up as “non-taxable distributions” someplace in the FA paperwork, so you would have to wait until the January where you file your last FAFSA (middle of Junior year) to start such withdrawals in order to avoid any FA consequences. You then could use that money to pay down whatever loans you had to take.