What Is A Typical EFC?

What is the EFC number on fafsa mean?

Expected Family ContributionSo what is an EFC.

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Your Expected Family Contribution (EFC) is an index number that colleges use to determine how much financial aid you’re eligible to receive.

Your EFC is calculated according to a formula established by law and the information from your Free Application for Federal Student Aid (FAFSA)..

What does an EFC of 7000 mean?

This number is the amount of money that you and your parents can afford to pay towards college. … For example, if your EFC is $7,000 and the total cost of attendance for a particular college is $28,000, your total financial need would be $21,000.

What is included in EFC?

Your EFC is calculated using information you’ve provided in your FAFSA information. It will take into account factors like your household income and the number of family members (including current college students!) that this income must support. … Also note that EFC is based on the recent year’s income.

Why is my EFC so high with low income?

If your family has accumulated wealth and investments, your EFC can be high, even if your family’s income is low. … Parents that withdraw from their 401k to pay for a student’s education are in fact increasing their EFC, because that withdrawal is counted as untaxed income on the FAFSA.

Do you have to pay EFC?

When you file the Free Application for Federal Student Aid (FAFSA), your income, asset and personal information are used to calculate the Expected Family Contribution, which also is known as the EFC. … Despite the name, the expected family contribution has little to do with the actual amount you will have to pay.

Is the EFC a dollar amount?

The student’s EFC is the minimum amount the student is expected to contribute toward the cost of college. Thus, EFC represents a dollar amount. It is the “output” of the aid forms and calculations.

How much EFC is too much?

A wide range of EFCs exists. Families with adjusted gross incomes (AGI) of $25,000 or less have an automatic EFC of $0. The EFC for the average American household with an AGI of $55,000 will often range from $3,000 to $4,000. These families have significant financial aid needs.

What EFC number qualifies for Pell Grant?

To meet the Pell Grant requirements, you’ll need to meet all the federal eligibility requirements for financial aid and prove that your expected family contribution is at or below $5,140 for the 2019-2020 school year. Currently, the maximum Pell Grant award is $6,195.

How do I find my EFC?

The EFC is calculated according to a formula established by law. Your family’s taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula.

What is considered a high EFC?

Any person with an EFC number at 0 will receive the maximum amount of student aid, while a number over 5273 will result in no aid at all. … However, if your family receives a low EFC number that is still higher than what is affordable, it is not a good EFC number.

What does an EFC of 5000 mean?

Say your EFC is 5,000. That means your family is expected to contribute 5,000 to your yearly college costs. Every school is going to have a different cost of attendance (COA) depending on how much you’ll spend on tuition, books, housing, and other factors.

What do I do if my EFC is too high?

Call the financial aid office at the college you are planning on attending and ask for an explanation of your EFC. A representative can provide the reasoning behind the calculations, so you might be able to see something you missed. In some cases, you may be able to appeal your financial aid decision.

What does my EFC code mean?

Expected Family ContributionBy Kevin Ott College Administration and Financial Aid Specialist. EFC stands for Expected Family Contribution. The EFC code number you receive after you complete a FAFSA (Free Application for Financial Aid) is the amount your family is expected to contribute for one year (the school year to which the FAFSA applies).

How do I reduce my EFC?

“Common advice: pay down debt and make big purchases before filing the FAFSA.” If you have a lot of savings consider spending some of those savings towards paying off your debt. This has the primary advantage of reducing your EFC, the asset base by which your need is assessed.

Why is my EFC high?

If you have a high EFC, it means the feds think your family will be able to cover a bigger portion of your cost of a higher education —especially if your EFC is more than the cost of the college your student is attending. In those cases, the government assumes your family can afford all the costs of college.