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Expected Family Contribution (EFC)
The Expected Family Contribution (EFC) criteria includes the total of the Parent Contribution added to the Student Contribution. These are determined based upon:
- Parent and student assets and income
- Number of children-including number in college at the same time
- Extraordinary expenses and obligations (caring for sick children or elderly dependent grandparents)
- Parental savings
- Assets, personal and business, including the value of businesses owned and/or the value of any stocks or other investments.
The EFC is calculated through a standardized formula called the financial need analysis by the U.S. Department of Education. This is the first step in determining eligibility for all types of federal Title IV aid. You can test this federal methodology at http://www.finaid.org/calculators/ This free service provides a form where you can prepare an EFC. The site contends that your figures and that of the government may vary and, ultimately, the school's financial aid administrators are the final processors who send the Award Letter (student's financial aid package).
Please remember the federal programs were designed to assist families in paying for a postsecondary education. The basic responsibility of paying for college belongs to the student and his/her family. The federal programs were created to help students cover the difference between the cost of education and the amount of money they have available to meet those expenses.
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