<p>What exactly does the efc number mean? Is it the percentage of tuition the family is expected to pay? How does it affect other scholarships? For example, if I get a four thousand merit based scholarship, would that be included in the percentage we are expected to pay, or would it be part of the "aid" and the government will contribute four thousand less.</p>
<p>The EFC on the FAFSA is the MINIMUM amount your family would be expected to pay for college. FAFSA provides information to colleges for the dispersement of federal need based aid only. Some schools do use the same information to disperse their own money. Most schools do NOT meet full need…so the amount of your EFC (expected family contribution) on the FAFSA should be viewed as the MINIMUM your family will be expected to pay for the upcoming year.</p>
<p>It depends on the school’s policy. If the merit award is from the school they will probably use it to help close the gap, or it may reduce self-help (loans/work study) if there is no gap. Some schools reduce your institutional need based grants first. Federal aid is usually the last thing reduced since it doesn’t cost them anything! A call to the FA office will tell you what their policy is.</p>
<p>The EFC is a dollar amount. It is a measure used to determine FEDERAL aid, not TOTAL and/or SCHOOL aid. If your aid reduces your Net Cost To Attend to less than the EFC, the FEDERAL aid will be adjusted to keep the Net Cost To Attend at least as high as the EFC. Once Federal Aid is adjusted to $0, then your Net Cost To Attend can drop below the EFC.</p>
<p>There is a VERY HIGH likelihood that your Actual Net Cost to Attend will be higher than the EFC, unless you earn a generous merit award.</p>
<p>Note: Reducing $ for $ federal aid is not necessarily the worst thing in the world. If you can get the school to reduce Unsubsidized Loans first, it results in a positive Net Present Value trade-off (less loans to repay when you graduate). But, it doesn’t help you to meet your out pocket costs (but doesn’t make it any worse).</p>
<p>To add to OperaDad’s info, unsubsidized Stafford loans are not need based, so they actually can be used to replace your EFC if the net cost to attend is lower than the EFC. </p>
<p>For federal need based aid (Pell, ACG, SMART, FSEOG, Work Study, Perkins loans, subsidized Stafford loans), COA - EFC = Need. Need based aid CAN be awarded up to the amount of Need.</p>
<p>For federal unsubsidized Stafford loans, COA-all aid (need based & merit)=eligibility for unsubsidized loans (up to the year in school maximums).</p>
<p>COA-EFC-all aid=Gap. EFC and Gap are out of pocket. The exception would be there was enough in merit aid to cover the EFC. Obviously, the EFC wouldn’t be covered by need based aid (because EFC is what theoretically ISN’T needed).</p>