Expected Family Contribution - EFC
Definition of 'Expected Family Contribution - EFC 'The amount of money that a student's family is expected to contribute to college costs for one year. Financial need is calculated as the difference between the cost of attending school and the expected family contribution. The EFC considers family income, assets, size of current household and the number of family members currently enrolled in college. |
|
Investopedia explains 'Expected Family Contribution - EFC 'Generally, the lower the EFC, the higher the financial need, and therefore, the greater the eligibility for federally-sponsored financial aid programs such as Pell Grants, Perkins and Stafford Loans, and Federal Work-Study Programs. Families must submit a free application for federal student aid (FAFSA); following this application, the family will receive a student aid report (SAR) that includes the official EFC value.This information is also sent to any schools that the student listed on the FAFSA, whereupon the school's financial aid office will prepare a financial aid package and financial award letter, informing the student and family of the amount of any expected financial aid in terms of grants and loans. |
Related Definitions
Articles Of Interest
-
College Loans: Private Vs. Federal
Not all student loans are the same. Know what you're getting into before signing on the dotted line. -
You CAN Afford To Study Abroad
Before you jump on the plane, understand the rules and regulations in place. Then, enjoy your time studying aborad! -
All About Student Loans
Student loans bridge the gap between college savings, scholarships and the part-time work. -
Pay For A College Education With Retirement Funds
These savings vehicles may be better than college saving funds for some families. -
College Cost Reduction Act Helps Students Meet Payments
This legislation can help families pay college costs and reduce student debt. -
Financial Designations That Employers Require
We break down the designations that are important to have if you want to work in the financial sector. -
Should You Get A CFA, MBA Or Both?
These certifications require time and money, but combined programs are making obtaining both designations more realistic. -
The Economics Of Stay-At-Home Moms
If an at-home mom was getting paid for all of the work she does, how much would she get? -
Pass Your CFA Exams On The First Try
Become one of the elite who pass these exams by using these simple study methods. -
Should You Head Back To Business School?
Find out if an MBA is necessary for you to reach your professional goals.
Free Annual Reports