What Is the Definition for EFC on a FAFSA Application?
FAFSA stands for Free Application for Federal Student Aid. College students and their families must complete a FAFSA in order to receive any government funds for higher education. Funds may include grants, scholarships and loans. Be prepared with pertinent information when completing a FAFSA, such as current or previous year's income tax return. This will be used as proof of income, which will be used in determining EFC.
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What Is EFC?
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EFC stands for Expected Family Contribution. This is the formula used by the government or institution to estimate how much money a student's family would be able to contribute to his or her education. This helps schools determine how much and what types of financial aid a student is eligible for. It is important to note that EFC is not the amount your family will have to actually pay for college. It is merely the amount used by the college or government to determine how much your family could be expected to spend toward a college education.
How Is EFC Calculated?
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EFC is based on financial strength of a family, including assets and income. Number of family members in a household and number of family members in college are considered as well. EFC is then subtracted from the cost of college attendance. Cost of attendance includes student fees, tuition, estimated expenses for books and supplies, room and board, personal expenses, and transportation. The amount remaining is the amount of estimated financial need of the student. There are two primary formulas for determining EFC: the Federal Methodology and Institutional Methodology.
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Federal Methodology
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The Federal Methodology is a formula developed by the government to assess the needs of individual students. This formula is used to determine a student's eligibility for state and federal financial assistance. Additionally, some higher education institutions use this formula for awarding institutional aid.
Institutional Methodology
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The Institutional Methodology was developed by and is maintained by the College Board. This formula, also based on need analysis, is used by colleges and universities to determine eligibility of students for private and institutional financial assistance.
Reviewing Your EFC on Your SAR
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Once you have filled out your FAFSA, you will receive a Student Aid Report (SAR). This is a document based on the information provided in your FAFSA. Your EFC will be listed on the SAR. If there is an asterisk (*) beside your EFC, it means that the information needs to be verified. You may need to provide some documentation to the college to which you have applied to verify your income or other factors. A "C" beside your EFC means that some information may need to be corrected.
Disputing the EFC
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When reviewing your FAFSA, you may question the amount of your EFC, particularly if it seems very high. If you feel that your EFC has been estimated incorrectly, contact your institution's financial aid department to find out about the appeal process. You will be required to submit your request in writing. Be prepared to provide documentation of change in income or other circumstances.
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References
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