Expected Family Contribution (or EFC) is a term used in the college financial aid process. It is the estimate of the parents' and/or student's ability to contribute to post-secondary education expenses. Generally speaking, the lower the EFC the higher the financial aid award from the college may be. Zero is the lowest EFC number (and most desirable), and 99,999 is the highest.
The EFC is calculated based on a student's responses to questions in the FAFSA if the FAFSA has been completed without significant errors. Some colleges and universities may use the CSS Profile to calculate EFC (or have their own form). A major difference between the FAFSA and the CSS Profile is that the CSS Profile takes home equity (value of your house) into account when determining ability to pay, while the FAFSA does not.
The EFC is usually subtracted from the cost of attendance (COA) of the college or university to determine a student's financial need. If COA - EFC > 0, then a student has financial need.
Eligibility for a number of federal, state, local, and institutional aid programs is based on a student's EFC.
Items that will lower a student's EFC:
- Additional family members supported by the head of the household (e.g., siblings or grandparents who are living at home)
- Additional siblings in college
- Lower income (especially student income)
- Fewer assets (especially student assets)
For the 2009-2010 school year the maximum EFC for a student to be eligible for a PELL Grant is 4617.
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