What do efc numbers mean on fafsa

The EFC factors in your family's taxed and untaxed income, assets, and benefits such as unemployment or Social Security. Your family size and the number of family members who will attend college during the year are also considered. Note: Your EFC isn't the amount of money your family will have to pay for college and it isn't the amount of federal student aid you'll receive. Typically, the lower your EFC, the more financial aid you'll be eligible to receive.

The COA is typically tuition, books, supplies, transportation, room, and board. Based on this formula, your school's financial aid office will prepare a financial aid package and send you a financial aid offer. Keep on reading to learn more about what an EFC is, how colleges calculate it, and what this means for you as a student applying for financial aid.

EFC or Expected Family Contribution is the amount of money that a college estimates that your family can afford. On top of what your family is expected to contribute, you may qualify for other types of financial aid through your college, your state government, and the local government. This financial aid can include need-based grants such as the Pell Grant , student loans , and work study.

On top of this, you may also qualify for different outside scholarships or college-specific scholarships that can chip away at the costs that your family is responsible for. This is one of the reasons why a full ride scholarship is so valuable for students!

Click here to learn more about the changes and what this means for students! This means that colleges take a wide variety of factors into account when calculating your specific EFC. But in every case, factors like your family income, size of your household, having other siblings in college, and home equity will be taken into consideration when figuring out your EFC. Every college will be calculating EFC differently; there is not a set formula, so your Expected Family Contribution will vary from college to college.

In order to estimate your potential financial aid which would be a good guess at your EFC , you can use the Net Price Calculator. While the Net Price Calculator is not an official financial aid calculator, it will provide a good estimate for your family at any college or university in the United States. When you receive your official financial aid letters after you are accepted, the EFC will provide a valuable datapoint for comparing financial aid letters.

NMLS , is referred to here as "Credible. One way to lessen this confusion is to learn how your FAFSA results are used to determine the federal financial aid you qualify for — such as understanding how your Expected Family Contribution EFC is calculated and what it means.

Your Expected Family Contribution is calculated based on your FAFSA information and is used by financial aid offices to determine how much federal financial aid you qualify for. Learn More: Federal Stafford Loans. This number is also the maximum amount you can receive in need-based aid — though you might be able to get more in non-need-based aid. Keep in mind that students who come from households with a low adjusted gross income AGI will generally have a lower EFC compared to students from wealthy families.

This means low-income students will often be eligible for more financial aid. Check Out: Federal vs. Private Student Loans: 5 Differences. There are two categories of federal financial aid — need-based and non-need-based aid. Learning the difference between the two can help you better understand your financial aid package and the role of your EFC.

You must have financial need as well as meet other requirements to qualify for need-based aid. To calculate your financial need, your school will subtract your EFC from your cost of attendance. Your financial need is also the maximum amount of need-based aid you can get. Learn More: Subsidized vs. Unsubsidized Student Loans: Know the Difference. After you submit the FAFSA, your school will send you a financial aid award letter detailing the financial aid you qualify for.

Updating this system is expected to help clear up these misunderstandings as well as highlight how this number is actually used — as a part of financial aid calculations.