Expected Family Contribution (EFC)

The expected family contribution (EFC) is the way a family's ability to pay for college is calculated. The formula for determining eligibility for federal aid programs is the same for all colleges. When you apply for financial aid, you'll be expected to answer questions about your family's income, savings and assets. Most of the information is readily available from tax returns, paycheck stubs, bank and other financial account statements.

It's important to note that the formula for determining your EFC does NOT consider the price of attending college. Your EFC will be the same regardless of whether you'll attend a college with a tuition of $5,000 or a university that charges more than $20,000.

The EFC formula considers:

• all family income
• accumulated savings
• the amount of taxes paid
• the size of your family
• the number of children enrolled in college at the same time
• the age of the older parent and how close they are to retirement
• the student's own financial resources

To figure out your own EFC, you'll need to fill out the Free Application for Federal Student Aid (FAFSA) and submit it to the financial aid office of the college you're applying to.

There are other factors that are considered and what you end up paying for college may be very different than the EFP. These factors include:

• non-need-based financial aid(merit scholarships)
• attending colleges priced less that your EFC
• a portion of your financial aid being rejected (especially loans)
• colleges being unable to meet the financial need of all aid applicants
• potential financial aid recipients deciding not to apply for financial aid

Many students do not get aid simply because they don't apply. Almost everyone who applies receives financial aid.

Related Student Loans Ed Web Pages » Free Student Loan Consolidation
» Student Loan Company List
» Student Loans Ed Articles
» Student Loan Ed Gov Websites