<p>Hey all,</p>
<p>I've received mixed messages about the EFC. To my understanding, it is only an index number, not how much you're actually expected to pay.</p>
<p>However, some people say they have a dollar amount. In my SAR, there is only the index number, not an amount.</p>
<p>Is there some sort of scale for translating the index number into a real monetary amount? My EFC is 846.</p>
<p>Thanks!</p>
<p>I was confused by this last year too. They say it is an index number but I’m not so sure, ours ended up looking suspiciously like the minimum amount we would be expected to pay.</p>
<p>I thought that maybe it’s a proportion, like, for every $10,000 dollars cost you need to pay $846 (for me at least). But again, just a pure guess.</p>
<p>No it’s not a proportion. It is probably the minimum you will pay. </p>
<p>For federal aid the EFC is used to determine eligibility for certain programs. For instance the main federal grant, the Pell grant, requires an EFC of 4617 or below. If you qualify for the Pell the amount you will be eligible for is roughly inverse to your EFC. With a 0 EFC you get the maximum (5550) and the amount goes down to the minimum 1176 at EFC of 4616 then phases out at EFC 4617. Most other federal grant aid is related to being pell eligibility. Other federal aid is basically either work study (which requires need) or loans (some of which require need, some not).</p>
<p>The FAFSA EFC is also used to determine state aid in certain states.</p>
<p>Outside of federal and state aid it will depend on the school and their policies, whether they have any institutional aid to offer, whether they promise to meet full need etc.</p>
<p>The EFC is a dollar amount, not an index. As Swimcatsmom explained…it should be viewed as the minimum amount your family will be expected to contribute. The reason for this is that MOST colleges do not meet full need. In other words your Cost of Attendance minus your financial aid will leave a balance that exceeds your EFC.</p>
<p>For example, if your school costs $20,000 and your financial aid is $10,000…that would leave a balance of $10000 to cover. If your EFC was $5000…you can see that the balance here is MORE than your EFC. You would be paying that “gap” in what the school offers you and their cost of attendance.</p>
<p>Yes, some schools DO meet full need, but not a high %age of them do.</p>
<p>In addition, most of the more generous schools also use the Profile and/or their own financial aid form in addition to the FAFSA. These forms are used to help schools determine their awarding of institutional aid.</p>
<p>So…not an INDEX…a dollar amount, but not what you WILL be paying for college each year, in MOST cases.</p>
<p>I know why the OP was confused about this. The first time we saw ours it was displayed with a caveat that it is an index and not the amount a family is expected to pay. But after talking with other people I ultimately decided it is a dollar amount.</p>
<p>I guess it could be argued that it’s both…a dollar amount and an index. Either way, it shouldn’t be thought of as the “minimum amount” that a family will have to pay. Unfortunately, many families mistakenly think so. So, perhaps it should be thought of as an index and not a dollar figure.</p>
<p>mom2collegekids…why would you think the EFC is an INDEX? An index typically represents a %age or something of that sort. The EFC does NOT represent any proportion of what all students will pay…it represents the dollar amount expected by the schools from the FAMILY when they are reviewing federally funded need based aid awards.</p>
<p>*The first time we saw ours it was displayed with a caveat that it is an index and not the amount a family is expected to pay. *</p>
<p>There have been a few posts that have said that there was a notation that it is an index. So, I can see why people would think that.</p>
<p>Thanks a ton to everyone who responded. I’m sure you answered a lot of people’s questions here, not just mine.</p>
<p>
Mom2CK, I think you meant to say “maximum amount” that families mistakenly think they have to pay. It really is more like a minimum.</p>
<p>^^^</p>
<p>LOL…thanks for the correction. Yes, I meant to say that families shouldn’t think that it’s the maximum amount that they’ll have to pay.</p>
<p>Thanks for catching that! :)</p>