what is efc?

<p>im not sure what efc is and what that number means..... can someone help me out?</p>

<p>EFC is "expected family contribution". The amount is the per year total the family (parents and student) is expected to provide "out of pocket" for educational costs.</p>

<p>It is derived from the FAFSA, using methodology that takes into account parent and student earnings, assets. In addition, some schools (usually privates) use the CSS Profile and possibly their own methods in addition to the FAFSA.</p>

<p>Federal methodology (FAFSA) seems a bit "less harsh" than the others in what they look at.</p>

<p>There are many experts on the forum far more qualified than I to answer deeper, and as such my summary is a rudimentary answer.</p>

<p>EFC stands for Estimated Family Contribution. It is calculated by FAFSA using a formula that uses your parents income and assets and your income and assets. It also takes into account variables such as family size, number in college, number of parents etc. The EFC is used by schools to calculate your 'need' on which need based aid is based. Each school has their own COA or COE (Cost Of Attendance or Enrollment). The EFC is taken away from the COA to arrive at your 'need'. This need may be met with grants/loans/work study. At many schools full need may not be met - this is called a 'gap'.</p>

<p>For federal aid the EFC is especially important for qualifying for federal grants. For instance the largest federal grant is the Pell grant. For the 2008-2009 school year only students with an EFC below 4042 qualify for the Pell grant. The maximum Pell grant is $4731 and requires an EFC of 0. As the EFC increases the Pell decreases until it reaches 0 for an EFC of 4042 or above.</p>

<p>The really important thing to keep in mind is that EFC is NOT the amount your family will be expected to contribute. It IS the amount used in determining your eligibility to receive federal funds. Others use the EFC to award aid, as well. The college may offer institutional funds based on the EFC, and outside scholarships may consider the EFC in making awards. </p>

<p>Others have posted what goes into determining EFC & that is used in awarding aid. I just wanted to make sure I added the important caveat that EFC is not what your family will be paying for school. You could get an aid package that meets need with lots of loans. In that case, your family is paying the EFC AND paying for loans (they are repaid after college, often, but they do need to be repaid). You could get an aid package that does not actually meet your full need. In that case, your family is paying whatever the gap amount is (plus, there may well be loans). If you get lucky, you may get enough aid from federal programs and/or scholarships that you actually get more money than you "need."</p>

<p>Sorry to confuse further!</p>