What is a key factor in determining a student’s eligibility for need-based financial aid?

A key factor in determining a student’s eligibility for need-based financial aid is their expected family contribution (EFC). The EFC is a measure of a family’s financial strength and is calculated based on the information provided in the Free Application for Federal Student Aid (FAFSA). This calculation takes into account various financial factors, such as income, assets, and family size, to estimate how much the family can be expected to contribute toward the student's education.

When institutions and programs assess a student's eligibility for need-based financial aid, they consider the EFC in conjunction with the cost of attendance at the school. If the cost of attendance exceeds the EFC, the student may qualify for need-based aid to help bridge this financial gap. This makes the EFC a central element in the financial aid process, influencing the types and amounts of aid for which a student may be eligible.

In contrast to the other options, which may play a role in a student’s overall profile or application process, the EFC specifically quantifies financial need and is essential for determining eligibility for need-based financial aid programs.