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<p>Just be careful with the advice, because not all colleges follow the same formula. For a college that caps home equity, for example, paying down a mortgage can be a good idea. But, for the majority of Profile schools that do not cap equity, you are only moving money from one pocket to another. The impact on financial aid is zero.</p>
<p>staubmom: you also need to be concerned about timing. Moving assets can be helpful if done prior to senior year, the base year for college. Any funds contributed to a 401k during senior, for example, get added back to income to calculate the EFC.</p>