<p>rachel - EFC = Expected Financial Contribution. It is how much colleges calculate your family can pay a year based on the forms parents fill out. The remaining amount to meet tuition, room&board, and other expected expenses is your need. Most colleges meet either all or most of that need through grants, loans and work study (not counting merit scholarships. If you get this they subtract it from your need). So for example, Tulane costs about $55,000 a year let’s say, and let’s assume no merit scholarships. If your family’s EFC is figured to be $30,000 then Tulane should come up with a package of grants, loans and work-study of about $25,000. If you got a $25,000 merit package, there would be no FA package from Tulane as the two together would be spot on. If you got the DHS, your family would “only” need to come up with about $15,000 a year and would save the rest. The difference between a grant and a merit scholarship is that the grant (along with the whole FA package) is recalculated every year as your family finances change. Merit scholarships are guaranteed for 4 years as long as you maintain a certain GPA.</p>