Why Is My EFC So High and What Does It Mean?
Wondering why your Expected Family Contribution (EFC) is so high? Learn what it means, the reasons behind it, and how to handle financial aid when FAFSA calculates a larger number than expected.
Your Expected Family Contribution (EFC) is the number determined through FAFSA that estimates how much your family can contribute to college costs. When your EFC is high, it can limit your eligibility for need-based financial aid, but it doesn’t always reflect the actual amount you’ll pay out-of-pocket. Understanding why your EFC is high and what it means can help you plan better for college expenses.
Understanding a High EFC
A high EFC means the government’s formula determined that your family has significant financial resources available. This doesn’t always match reality. Even if you feel unable to cover the number, colleges may reduce your eligibility for need-based aid. Your EFC is compared directly to a school’s Cost of Attendance, and if it’s equal or higher, financial aid options may be limited.
Why Is My EFC So High?
There are several common reasons why your EFC might be higher than you expected:
- Inclusion of Assets: FAFSA considers savings accounts, investments, and in some cases home equity when determining your EFC.
- Reduced Asset Protection: In recent years, fewer parent assets are protected, making more of your savings count toward the calculation.
- FAFSA Mistakes: Misreporting income, retirement funds, or rollovers can artificially inflate your EFC. Reviewing your FAFSA carefully is essential.
- Household Income: Higher household income significantly drives up EFC since the formula is weighted toward available income.
Should You Still File FAFSA With a High EFC?
Yes. Even if your EFC is high, you should always file FAFSA. Here’s why:
- Access to federal loans and work-study opportunities.
- Many schools require FAFSA data for merit scholarships, even if you don’t qualify for need-based aid.
- Some colleges award institutional grants based on FAFSA information, regardless of EFC.
What You Can Do If Your EFC Is Too High
If you believe your EFC does not reflect your family’s actual financial situation, there are steps you can take:
- File an Appeal: If you’ve experienced job loss, medical expenses, or other special circumstances, contact your financial aid office for a professional judgment review.
- Apply to Generous Colleges: Some schools offer strong merit aid or institutional grants even when EFC is high.
- Plan Ahead: Build a budget early, use savings wisely, and explore scholarships that don’t rely on need-based calculations.
Key Takeaways
| Factor | Impact on EFC |
|---|---|
| High income or assets | Increases EFC, reducing need-based aid eligibility |
| FAFSA errors | Can inflate EFC, so double-check all entries |
| Appeals | Possible if family’s financial situation has recently changed |
| Filing FAFSA | Still important for loans, merit aid, and institutional aid |