EFC is a short form that stands for Expected Family Contribution. It helps to ensure whether a student is qualified for the available federal grants.
FAFSA ( Free Application for Federal Student Aid) is a student report sheet where the student enters his or her details regarding the EFC. It is used for the calculation using the EFC formulae. This is mostly used in the United States.
In secondary or post-secondary education, the EFC is mainly used for students. And if a student is dependent on parents thereby becoming a dependent student, the parent’s ability to bear their child’s academic expenses is calculated.
So, today in this article I will explain to you more about EFC and how it gets to students, and what are the considerations for EFC.
How does the EFC get to the students?
The form is not distributed by the federal government so it is gotten through colleges. Most of the time, the college combines the state financial aid and federal student aid eligibility with their own aid to make a full financial aid package for their students.
When EFC is low, the financial award increases but when EFC is high the financial award decreases.
The various grants available for students in the United States
- Federal Pell Grants
- Federal Supplement Educational Opportunity Grants (FSEOG)
- Federal Work-study
- Subsidized Loans through the William D. Ford Federal Direct Loan Program
- Teacher Education Assistance for College and Higher Education Grant (TEACH) using FAFSA application.
Process of submitting a FAFSA
- By making use of the site
- The app mystudentAid application.
- By going to the colleges where you can fill the application through the school
- By sending your FAFSA mail to the Central processing system (CPS)
Considerations for EFC
The formula for calculating EFC is not the same always. It changes annually, so there are different formulas for the different families.
- Dependent students
- Independent students without dependents other than a spouse
- Independent students with dependents than a spouse
The income, size of the family, living expenses, savings are also put into consideration.
The Automatic zero
A student is qualified for the automatic zero if the family income is below $26000.
The Simplified test
It is applicable for families who earn between $26000 and $50000, assets are not included.
Conclusion
EFC is a major factor that is put into consideration for helping students with financial needs and problems. It is like an index number that a college considers before providing financial aid.
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