Office of Student Aid : Applying for Student Aid 2008-09 : 2008-09 FAFSA Tips : EFC Explanation

Completing your Free Application for Federal Student Aid (FAFSA) on the Web is the first step in determining the types of aid programs that you are eligible to receive during the academic year. The income and household information submitted on the FAFSA on the Web is used to complete a process known as "need analysis." Your need analysis is used to calculate your Expected Family Contribution (EFC), which is the major determining factor in calculating your financial need.

Determining Your EFC

Your EFC is a calculated figure that is used to estimate your family's ability to contribute towards your education. This figure is established by entering the information you submit on the FAFSA on the Web into a formula established by Congress and federal law.

• Generally, the EFC takes into account your (and your parents if you are a dependent student) income and assets, number of people living in your household, and number of students attending college.
• The formula used for determining financial aid eligibility is the same for all colleges. The formula does not consider the actual price of the college you are attending.
• Your EFC is expressed as a dollar amount for you (and your parents if you are a dependent student).

Determining Your Financial Need

To determine your financial need, your expected family contribution is subtracted from the cost of attendance. This figure determines your eligibility for most aid programs. The following shows the financial need equation:

Cost of Attendance -- (minus) Expected Family Contribution = (equals) Financial Need

• In most cases, student financial aid meets only part of your financial need. Federal, state and institutional resources form a partnership with you and your family's commitment to paying for a college education.
• When awarding aid programs, such as Federal Perkins Loan, Supplemental Educational Opportunity Grant (SEOG), Work-Study, Direct Stafford Loan, and most University funds, regulations prohibit us from allowing your total student financial aid to exceed your financial need.
• Although your EFC should be the same at every school you apply to, your financial need will vary according to each school's cost of attendance.