What is EFC and how is it determined?
EFC is an acronym for Expected Family Contribution, and is the calculation that is used to determine how much Federal student aid a student will be eligible for. The data points that are used to determine a student’s EFC is taken from a student’s FAFSA (Free Application for Federal Student Aid).
Students who applied for federal student aid from during the previous year may reapply online using a FAFSA renewal. Applying for federal student aid is free, but applying for non-federal institutional aid directly from schools may require additional forms to be completed and which also may require application fees.
Over 80% of colleges and universities only use the federal student aid calculation to determine the amount of financial aid a student is in need of. As mentioned above, some schools may require additional forms to determine their own calculation of financial aid. Many of these use the CSS Profile methodology to determine need based aid. CSS Profile School List
How is EFC used?
Once the EFC is determined, it is subtracted from a student’s Cost of Attendance (COA) to determine their need for federal student financial assistance — which is offered by the U.S. Department of Education in the form of grants or loans such as: Federal Pell Grants, subsidized Stafford Loans, Federal Supplemental Education Opportunity Grants, Federal Perkins Loans, or Federal Work Study.
Who Should Complete FAFSA?
Everybody applying to college should complete a FAFSA, even if you believe you make to much money to receive financial aid. You can visit Federal Student Aid website to begin your FAFSA.
Mistakes and missed deadlines are one of the biggest reasons why families miss out on financial aid opportunities. If you would like to have one of our experts complete your FAFSA flawlessly and ensure it is submitted on time, you can reach out to us via contact us page, and we will be more than happy to assist you.