What is Expected Family Contribution (EFC)?
There is a lot of confusing language (and plenty of acronyms) when it comes to paying for college and financial aid. You may be surprised to know that “expected family contribution” or “EFC” is not necessarily the amount of money your family will actually end up paying your college. So what exactly is the EFC?
When you complete the FAFSA, you enter general and financial information about your household. From there, the U.S. Department of Education calculates your EFC and provides it to the colleges you select on the FAFSA. According to the Department of Education, your EFC is not the amount of money your family will have to pay for college, nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate how much financial aid you are eligible to receive.
Let’s add some sample numbers to help. If the college estimates your cost of attendance to be $25,000 for one year, and your household’s EFC is $12,000, there will be $13,000 remaining to be paid. If you’re awarded $3,000 in need-based aid, you will be left with $10,000 to be covered by non-need-based aid (that’s where student loans come in).