What is an EFC?

Why EFC is important to students and parents

EFC (expected family contribution) is a a critical – and sometimes feared – component of the student education aid equation. When students (or parents) make application for Federal student aid, an EFC is calculated.

Based on the student and parent financial situation at the time of application, the EFC will estimate the anticipated contribution level to be paid by the family.

As you might imagine, there is not always instant agreement between student/parent and the calculation made using Federal government standards. EFC is typically calculated based on information in a student’s FAFSA ( Free Application for Federal Student Aid).

However, some universities use the CSS (College Scholarship Service) Profile, which accomplishes the same goal. However, the CSS Profile application takes into consideration the value of equity in a home, which the FAFSA does not. This might have a major effect on increasing your EFC contribution.

An EFC is not a “bad” thing, but can sometimes cause apprehension and uncertainty. Its purpose is to identify the amount – on an annual basis – that a student or his/her parents can effectively contribute to higher education costs for the coming year.

These calculations are not intended to create a financial hardship on the student, but to allow the awards of Federal and university aid to be made fairly.