Instead of borrowing against your home, borrow against your securities portfolio. Most brokerage firms extend so-called margin loans. Margin loans will reduce the net worth of the portfolio and reduce assessable financial aid assets.
The parents reduced their assets by $5,000 by borrowing against their securities portfolio. Since the parents assets were assessed at 5.6% the asset reduction may increase the childs financial aid eligibility by $280 ($5,000 x 5.6%).
If you are in a financial aid asset assessment rate of 5.6%, you could increase your financial aid eligibility up to $56 for every $1,000 of asset reduction by borrowing against your securities portfolio.