We have received enough questions regarding EFC (Expected Family Contribution), and what it has to do with student loans, that we thought it was time to clear up the mystery once and for all!

The EFC, otherwise known as the Expected Family Contribution is the amount of money your family is expected to contribute towards college education.

Many of you have inquired about where to receive this calculation amount, and the simple answer is… the government will provide you with your official federal EFC calculation once you have completed the FAFSA form. So what exactly does this calculation have to do with student loans or money you receive for college?

Well, in basic terms your EFC calculation will be used to determine the severity of your need for monetary assistance (based on family income, and other factors) from the following types of federal student financial assistance:

Federal Pell Grants
Subsidized Stafford Student Loans
Federal Perkins Student Loans
Federal Supplemental Educational Opportunity Grants
Federal Work-Study

Tags: FAFSA / federal student loans / parents / student loans

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