Expected Family Contribution (EFC)
The Expected Family Contribution (EFC) is in theory a measure of a family’s ability to contribute towards a student’s cost of attendance (COA), calculated according to a formula established by law. It is more realistically a rationing tool that compares the relative financial strengths of all families applying for aid. It is one component of the need formula: COA – EFC = Need. The EFC formula, which is defined in law by Congress, considers a family's taxed and untaxed income, assets, size and the number of family members who will attend college during the year.
Related topics in this Index: Need Analysis; Cost of Attendance; Professional Judgment
See also Subtopics for more specific references.
Federal Register, 6/5/20 [Federal Need Analysis Methodology for the 2021-22 Award Year]
Federal Register, 5/31/2019 [Federal Need Analysis Methodology for the 2020-21 Award Year]
2021-22 FSA Handbook, Vol. AVG
2020-21 FSA Handbook, Vol. AVG
Financial Need and Aid Volatility Among Students with Zero Expected Family Contribution
(Journal of Student Financial Aid)
Need Analysis AskRegs Knowledgebase Q&As
(National Association of Student Financial Aid Administrators)
Need Analysis Self-Study Guide (National Association of Student Financial Aid Administrators)
The Distributional and Cost Implications of Negative Expected Family Contributions
(Journal of Student Financial Aid)