Expected Family Contribution - EFC

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Dictionary Says

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 Says

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.

Search results for

'Expected Family Contribution (EFC)'

  • Pay For A College Education With Retirement Funds

    http://www.investopedia.com/articles/retirement/07/college-retirement.asp
    ... that your family has financial need, which is defined as the difference between
    the (full) cost of attendance and your expected family contribution (EFC). ...

  • An Introduction To Perkins Loans

    http://www.investopedia.com/articles/younginvestors/11/everything-you-need-to-know-perkins-loans.asp
    ... This is called the expected family contribution (EFC) and is the sum of: a percentage
    of net income (after subtracting a basic expense allowance); ...

  • College Loans: Private Vs. Federal

    http://www.investopedia.com/articles/younginvestors/09/private-or-federal-student-loans.asp
    ... The DoED uses the FAFSA form to determine your expected family contribution (EFC),
    or how much your family will be required to pay towards the college bill. ...

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