What Is FAFSA EFC

One of the more common questions when it comes to FAFSA (Free Application for Federal Student Aid) is, “what is FAFSA EFC?” The FAFSA EFC stands for “Expected Family Contribution”, and is basically what you or your family is expected to contribute towards paying for your college education. The EFC a number based on a specific formula that will correlate with what you are eligible to receive in federal financial aid for college. In simple terms, generally the lower your FAFSA EFC, the more in federal financial aid for college you are eligible to receive.

The FAFSA EFC is based on a formula that takes the following factors into account: income, assets, employment benefits, your family size, and the number of family members currently attending in college. Once you file your FAFSA, your Student Aid Report (or SAR) will be generated and sent to the schools you have indicated on your FAFSA form. Those schools will then subtract your EFC number from the cost of attendance, and thus you are left with your financial need for a particular school.

Now, often times your FAFSA EFC is NOT the exact amount you will be expected to pay, because financial aid is also determined by the availability of financial aid at any particular school. The truth is many families could end up paying more or less than their EFC. If you would like to take a look at what is FAFSA EFC for your family (estimated), there is an online estimation tool (FAFSA4caster) to help estimate what your EFC will be.