Financial Basics - EFC

Having a realistic idea of college costs is critical to building a list of affordable colleges for your student. Knowing your EFC can help you make decisions that are in line with your financial means and goals.

What is the EFC?

EFC stands for Expected Family Contribution. It is a measure of your family’s financial strength and 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) are all considered in the formula. Also considered are your family size and the number of family members who will attend college during the year.

The information you report on your Free Application for Federal Student Aid (FAFSA) or through the FAFSA4caster is used to calculate your EFC but you can get an estimate without having to file the FAFSA.

Note: Your EFC is not the amount of money your family will have to pay for college. It is a number used by colleges to calculate the amount of federal student aid you are eligible to receive. Whether or not you agree with this number, it will become the basis of any university's decision-making regarding need-based financial support.  

How can I figure out what my EFC is?

You can estimate your Expected Family Contribution (EFC) by using the calculator available at the College Board’s website. You'll need your (parent’s) tax return and information on any financial assets and investments. When asked, indicate that you want to use both the federal and the institutional (or it may say 'PROFILE') methodology. Most schools use the federal formula, but about 260 (mostly private) schools use the institutional formula. 

Here's the link: https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/expected-family-contribution-calculator.

What do I do with my EFC?

If you are a CollegeMadeClear client, I will use it to inform the college list building process and make sure your student has affordable colleges to which to apply.

If you are not a CollegeMadeClear client, you can add your EFC to any of a number of publicly-available college search engines, along with the other criteria your student has for colleges (size, location, major, etc.) to find colleges that will fit your family financially.

The chart below (from 2017-2018, the last year this data was updated) shows how Adjusted Gross Income and EFC relate. It also shows quite clearly that for an EFC below $70,000, need-based aid is a possibility for students attending the most selective (and expensive) colleges.

Contact us for more information.