What is the Expected Family Contribution (EFC)?

The Expected Family Contribution (EFC) is a critical factor in determining a student's eligibility for financial aid. It is a measure used by the US Department of Education to assess how much money a student's family can contribute towards their education expenses. The EFC takes into account various factors such as income, assets, family size, and number of family members attending college. The calculation is done using a standardized formula known as the federal methodology. It considers both parental and student income and assets to derive a number that represents the family's ability to pay for college. This figure is then used to determine the student's eligibility for need-based financial aid programs including grants, scholarships, work-study, and low-interest loans. Ultimately, the EFC helps colleges and universities determine the amount of financial aid a student requires to afford their education and create a fair and balanced distribution of funds.