<p>Are you making 20%/year on your stock? If not, and that’s around what you’re paying in interest in your credit card debt, then taking the modest gain to pay down this debt, plus paying taxes on the gain, seems like a wise decision.</p>
<p>In addition, whatever you spend from your stock holdings is no longer your asset, therefore not reportable on financial aid forms. This might balance out some of the $2000 bump in AGI that resulted from realizing your capital gains. Spending $10,000 in parent assets reduces marginal EFC by $560.</p>