07.02.09 | FAFSA and Your EFC
Ahh the dreaded EFC. EFC stands for “Estimated family contribution” and it is a number that is displayed on the screen once you submit your FAFSA. Most of the time it can be scary, because it does appear that that number will be how much your family is “expected to pay”…hence the name of the number. The good news is that is not the case at all. That number that is generated through the information you submitted on the FAFSA is a number that a college uses to determine how much aid a student is eligible at that particular college. Just like the Dep’t of Ed has a formula to determine the EFC, each college has their own specific formula for calculating aid. The actual amount that you owe to the school after they assess your aid package, will not be the same as the EFC. This is mostly based on the school’s particular cost of attendance and how much institutional aid they have to give.
There are also other factors involved like scholarships, work study and student loans. SO the bottom line is, don’t freak out when you see your EFC is 6000 and you know you don’t have that in the bank. Chances are, if you are going to reasonably priced school, you will not have to pay anywhere near that after you factor in all the aid, including loans. Any other questions on the EFC? Post a comment and we can explore it some more.

