What is the purpose of the Expected Family Contribution (EFC) in financial aid?

The Expected Family Contribution (EFC) plays a crucial role in the financial aid process by serving as a measure used to determine how much financial aid a student may receive. It is calculated based on the financial information provided in the Free Application for Federal Student Aid (FAFSA) and reflects the family's financial strength and ability to contribute toward the student's education expenses.

The EFC is important because it distinguishes between the financial needs of students. Schools use the EFC to assess the student's demonstrated financial need, which is calculated by subtracting the EFC from the cost of attendance (COA) at the institution. The difference represents the financial need, and this need is taken into account when awarding different forms of financial aid, including federal grants, work-study, and loans. Thus, the amount of financial aid a student is eligible for is directly linked to the EFC.

This understanding of the EFC is central to ensuring that aid is distributed fairly and equitably based on each student's unique financial circumstances, which facilitates access to higher education for students from a variety of economic backgrounds.