What Is the EFC for FAFSA?
EFC stands for Estimated Family Contribution. This number is utilized by the school a student applies to and the federal government to determine how much a family can contribute to a student's college education.
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FAFSA
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Estimated Family Contribution is important for students hoping to attend college. When filling out the FAFSA (Free Application for Federal Student Aid), the end result produces an EFC number determining the amount per year a student's family can pay toward their child's college education.
Importance of EFC
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The higher the EFC, the lower the chance a student will have to receive "free" money from the government for financial aid.
Info Needed
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Tax information from either parents is utilized for minors, and independent students filling out a FAFSA on their own use their own tax information.
If EFC is Low
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If a potential student's EFC is fairly low, a university may be able to qualify a student for a Pell grant from the government, which is not required to be paid back. Also, if a student receives a low EFC score he will be more likely to receive subsidized loans, which have fixed interest rates that do not accrue interest while he is in school, but are required to be paid back after he receives a degree or finishes attending the school.
If EFC is High
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If a potential student's EFC is high, they still will qualify to receive student loans but the loans can be subsidized or unsubsidized. Unsubsidized loans accrue interest while the student is in school.
Considerations
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It is encouraged that students fill out the FAFSA application online instead of submitting a paper application because there are useful help features, tips and editing resources to help eliminate errors. The online application will also be processed faster.
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