If your EFC is $70k for child #1, it is a long way (down) to getting the income and assets to an amount (below $7k) to qualify for need based FA on the FAFSA only. Some schools do use the FAFSA EFC to award aid from the school, and the student could qualify for subsidized loans, but it is hard to say ‘if you get that EFC number down to$30k your children will get a lot of money.’ At some schools, maybe. Can your family live on a much lower ‘salary’ (pulling only a little bit out of your retirement accounts each year)?
FAFSA doesn’t really care where the income is coming from, if it is retirement funds pulled from 401k, pensions, etc. It’s income.
I agree that chasing merit is a better route. Virginia has wonderful public schools so I hope your kids can make those work.