The Expected Family Contribution (EFC) number is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid you would receive if you were to attend their school. That means the EFC figure may vary from school to school, which is normal.
Your EFC number is located in the upper right hand corner of your student aid report (SAR). Your SAR report is generated by the Department of Education after you file your FAFSA.
When you hear the term “federal student aid” that can be classified into one of three categories.
Grants: Free money that doesn’t have to be repaid, except in some cases when you withdraw from school.
Work-study: You earn money to pay for your education.
Loans: You borrow money for school, which you must repay with interest.
Your stepparent’s financial information is required on the FAFSA:
If the parent you received financial support from was a single parent who is now married, or
If the parent you received financial support from was divorced or widowed but has remarried
This does not mean your stepparent is obligated to give financial assistance to you, but his or her income and assets represent significant information about the family’s financial reresources. Including this infomration on the FAFSA helps the Department of Education form an accurate picture of your family’s total financial strength.
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.
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