EFC Overview
Your EFC is calculated using a formula set by Congress using the financial information you give on your FASFA application, including income, assets, benefits, family size, and the number of family members in college. To help determine your financial need, colleges subtract your EFC from their estimated cost of attendance (COA).
Need-Based Aid vs. Non-Need-Based Aid
You can receive need-based financial aid if your family meets certain eligibility criteria, but that amount cannot exceed your financial need. This relates to your eligibility for federal student aid programs such as Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), subsidized loans through the William D. Ford Federal Direct Loan Program, and the Federal Work-Study (FWS) program. Non-need-based financial aid is not based on your EFC. Even if you are not eligible for subsidized loans or financial aid, you may still be eligible for other federal programs, including Federal Direct Unsubsidized Student Loans, Federal PLUS Loans, and the Teacher Education Assistance for College and Higher Education (TEACH) Grant. Colleges may also be able to grant merit-based financial aid or athletic scholarships for students based on their high school accomplishments. You can also search for private scholarships on your own.
How COA Affects Financial Aid
Your financial need is your college’s COA - your EFC. If your EFC is 4,000 and your college’s COA is 4,000, you would not be eligible for any need-based financial aid. On the other hand, if your EFC is 4,000 and your college’s COA is 10,000, you might be eligible for up to 6,000 in need-based financial aid. That means your financial need can be completely different at two different colleges. Some families have an EFC of zero, which may qualify them for the maximum amount of assistance, but even some higher-income families find that they qualify for some forms of financial aid, depending on the specific university.
Changes in Expected Family Contribution
Your family will be required to complete a FAFSA every year a student is in college and requesting financial assistance. That means your EFC can change each year. If you had to use your savings to cover college costs for the student’s freshman year, that might reduce your EFC for the next year. You may have gotten a raise and increased your EFC. Having another child begin college will also reduce your EFC.
Independent Students
The EFC calculation for an independent student doesn’t take into account parental financial information like the EFC calculation for a dependent student does, so a student’s dependency status must be determined before the EFC is calculated. A student must meet one or more of several qualifying requirements for independent status laid out by the federal government. A student may be independent if they are:
24 or olderMarried or separated but not divorcedIn the military or a veteranHomelessGoing to begin working on their graduate degree
EFCs for independent students are based on their own assets and financial information.
