What the Heck is EFC?

Now that you have submitted the on-line financial aid application (FAFSA), the US Department of Education has told you what your EFC is.  EFC stands for Expected Family Contribution and it is a very, very important figure for understanding the whole financial aid process.

Based on your FAFSA submitted data, the government has determined that your family can afford the EFC amount each year for college expenses.  In other words, the EFC is the amount that you will be expected to pay each year.   It is important to understand that this is the amount you will be expected to pay regardless of how much the college costs.  No matter which college your son/daughter attends, very expensive or inexpensive, you will have to pay the same amount: your EFC.  The difference between how much the college costs and how much you have to pay is the amount of financial aid you are eligible to receive at each college.

Another important angle to understand is that you will not have to write a check to the college in the amount of your EFC.  You can use your financial aid to pay the tuition and housing expenses.  Your EFC amount can be used to cover the on-going costs such as books, clothes, personal supplies, and transportation that can be paid throughout the year as needed rather than in one lump sum.  You will not feel the pinch as much since you will spread out the cost over the year.

I know this is a complex subject and  I would love to hear your comments and questions.