<p>i hear that the FAFSA also doesnt take credit card debt into account...</p>
<p>That's correct. Only income, and (some) assets. Parents' and Student's.</p>
<p>FAFSA also doesn't count your home equity, or the value of your cars or other vehicles.</p>
<p>But since it does count assets like savings and checking accounts, you can pay down (or off) your credit card balances to reduce your assets, and perhaps reduce your EFC.</p>
<p>i’m grateful that my EFC is 5 digits…holy crap</p>
<p>but…it probably tops out at 99,999 because no college comes close to costing that much per year.</p>
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<p>This is probably good.</p>
<p>Also, if you (the student) have any money, I would spend that first before spending your parents’ money since it is assessed at a greater percentage. The FAFSA expects more of the kid’s money / savings to go towards it. Pay off your credit card debts first before buying another mansion though.</p>