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<p>A minor detail here, but paying down principal on a mortgage reduces interest paid (all other things being equal) but does not increase AGI. AGI is calculated prior to any itemized deductions, so the net effect of a lower mortgage interest payment on both AGI and EFC is zero. Since EFC is based on AGI, reducing itemized deductions doesn’t help (or hurt). Finding ways to reduce AGI would certainly yield a lower EFC, so looking carefully at lines 23-37 on your 1040 would be prudent.</p>