Expected Family Contribution
From Wikipedia, the free encyclopedia
Expected Family Contribution (or EFC) is a term used in the college financial aid process. It is the estimate of the parents' and/or student's ability to contribute to post-secondary education expenses. The lower the EFC, the less money a family has to contribute to a child's education.
EFC is usually calculated based on a student's FAFSA answers. Some colleges and universities may use the CSS Profile to calculate EFC (or have their own form). A major difference between the FAFSA and the CSS Profile is that the CSS Profile takes home equity (value of your house) into account when determining ability to pay and the FAFSA does not.
The EFC is usually subtracted from the Cost of Attendance (COA) to determine a student's financial need. If COA - EFC > 0, then a student has financial need.
Eligibility for a number of federal, state, local, and institutional aid programs is based on a student's EFC.
Items that will lower a student's EFC:
- Additional family members supported by the head of the household (e.g., siblings or grandparents who are living at home)
- Additional siblings in college
- Lower income (especially student income)
- Fewer assets (especially student assets)
