<p>How does the whole "EFC" apply to colleges? And how do they work?></p>
<p>When you fill out FAFSA by supplying a huge amount of financial info, it will provide you an Estimated Family Contribution. That is the amount the government has estimated your family can contribute for the year to total college cost. The hoped for result is that the college will then provide an amount of aid that is the difference between total annual cost (tuition, fees, room and board, books and some estimate on minimum spending money) and the EFC. However, it does not usually work out that way. Some colleges quarantee to meet full financial need meaning supply that difference, but even those may take into consideration assets FAFSA does not -- for example, they may consider the income of a non-custodial parent where there has been a divorce and FAFSA does not and thus determine your need is less than the full difference -- and the kind of aid may not be to your liking, e.g., heavy on subsidized loans rather than grants.</p>
<p>Then there are the majority of colleges that do not guarantee to meet total financial need. At those, you may get anywhere from 25% to 90% of that difference between total cost and EFC.</p>
<p>For many, the finanical aid process ends up being just what they hoped for; but for just as many if not more, it ends up being your worst nightmare and often that nightmare begins with a shockingly high EFC to begin with.</p>