What Is The EFC? Understanding Your Expected Family Contribution
When applying for financial aid for college, you may come across the term EFC, or Expected Family Contribution. Understanding what the EFC means can help you better navigate the financial aid process and plan for college costs.
This guide breaks down what the EFC is, how it’s calculated, why it matters, and what you can do if your EFC is higher than expected.
What Does EFC Mean?
The Expected Family Contribution (EFC) is a number used by colleges and the federal government to determine your eligibility for need-based financial aid. It estimates the amount your family can reasonably contribute toward your college education for one academic year.
In simple terms, the EFC is not the exact amount you’ll have to pay, but rather a guideline for schools to decide how much financial aid to offer you.
How Is the EFC Calculated?
The EFC is calculated using information from the Free Application for Federal Student Aid (FAFSA) or the College Scholarship Service (CSS) Profile for some schools. The calculation considers several factors, including:
- Family income and assets
- Household size
- Number of family members in college
- Student’s income and assets
- Parent’s age and retirement savings
Each of these elements influences the final EFC number.
Why Is the EFC Important?
The EFC helps colleges determine your financial need using this formula:
Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need
Financial aid offices use your financial need to award grants, scholarships, work-study, and federal student loans. The lower your EFC, the more likely you are to qualify for need-based aid.
Is the EFC the Amount I Have to Pay?
No, the EFC is not a bill or amount you must pay. Instead, it’s a number used to calculate how much financial aid you might receive. The actual out-of-pocket cost can be less if you receive scholarships or grants, or sometimes more if your aid package doesn’t cover the full cost.
Can I Appeal My EFC?
If your family’s financial situation changes significantly after filing the FAFSA (like job loss or medical expenses), you can request a financial aid appeal. Colleges may adjust your EFC based on these new circumstances.
Tips to Lower Your EFC
- Reduce reportable assets by paying down debt or investing in non-reportable assets.
- Report retirement accounts correctly—some aren’t counted as assets.
- Submit FAFSA early to maximize aid opportunities.
- Work with your school’s financial aid office to explore special circumstances.
Understanding your Expected Family Contribution is key to making sense of financial aid offers and planning how to pay for college. The EFC helps determine your eligibility for grants and scholarships, but it’s just one part of the financial aid process.