That is where a huge amount of players in the freeroll make there exit. There's still a long way to go before the money,so keep your head and remain patient. You can start loosening up your play in the this stage of the tournament and begin to make more moves. In troduce a few more hands into your play, such as A-J, A-10 in good position, Q-J, K-J, K-10.
A lot of people panic in this stage of the tournament about the "average" stack. My advice is don't! The average is self explanatory - they'll be people above it and people below. In no limit tournaments fortunes can change in one hand, worrying about the average number of chips is not going to help you. You'll either play too loose if you have below average chips, or get too complacent if you have above average chips. Just focus on picking your spots and accumulating chips.
Now is the time to be a little more aggressive yourself. Not as many people will be chasing hands with overcards that don't hit, nor will they pursue ower pairs, but there may be some, so lookout.
Don't try bluffing your way to victory. Unless you have a big chip lead to everyone else you shouldn't try to bluff too many times. A lot of people will just pick a hand where they're going to try and bluff it to victory. As with all bluffing pick your spots and try and make the story believable through the betting and the texture of the board. Bluffing, timing is everything. Capitalize on the weakness of your opponent. If you sense weakness in your opponent, go for it.
Sometimes your stack seems to diminish throughout the mid-stage of the freeroll. In order to keep it from disappearing, don't let it diminish to the point where you can't bluff someone out of a pot. If you have 1500 and the blinds are 100-200, now is the time to start being very aggressive instead of waiting until you've been blinded down to 600. When under ten big blinds - wait for some semi decent cards and go all in!