A low EFC means you may be eligible for a larger financial aid package, while a high EFC means you may have to rely on unsubsidized loans to cover any costs your family can’t afford.

What is a good EFC amount?

An EFC number under 5273 often qualifies you for a work study job. While most of these jobs are catered to students, giving them flexible hours and time to study, their pay is often low and any money earned is directly applied toward tuition and fees.

What does an EFC of $14000 mean?

So, if a school’s COA is $42,000 and the student’s EFC is $28,000, the calculated financial need is $14,000. While your Expected Family Contribution will not impact non-need-based awards (like merit scholarships), the need-based aid you receive won’t exceed your EFC.

What happens if my EFC is too high?

The higher your EFC, the more the federal government estimates your family can pay for your college education. No wonder many families are caught off guard by an EFC they believe to be too high–this could indicate that colleges will be less generous when making financial aid offers to their students.

How to understand the EFC number and what it means?

Trying to understand the EFC number and what it means? An EFC number is the “expected family contribution”, or the amount a family is expected to pay for their student’s college education. It short, the EFC has an effect on how much federal grant money you will be given for college expenses. What Is a Good EFC Number?

Is there a way to lower your EFC number?

There is no easy way to lower your EFC number without hiding assets and engaging in other illegal activity. If you plan in advance, you may be able to slightly lower your EFC by: Reducing assets by purchasing big ticket items before the FAFSA is filled out Having grandparents, instead of parents, establish 529 college savings plans

Why does a higher allowance result in a lower EFC?

A higher allowance results in a lower EFC, because it is deducted from your income in the formula. All else equal, families from high-tax states like California, Maryland, New Jersey, and New York will have lower EFCs; families from low-tax states like Alaska, Nevada, Tennessee, and Washington will have higher EFCs.