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.

The law prohibits ED from regulating any aspect of need analysis, including expected family contribution. See Subtopics for other related regulations.

Related terms: Need Analysis; Cost of Attendance; Professional Judgment

Access to Higher Education for Students Experiencing Homelessness: A Higher Education and Homelessness Resources Page Web URL

Source: National Center for Homeless Education

Examining Zero Expected Family Contribution as a New Criterion for “Low Income”: Comparing the Impact on Student Persistence at Two- and Four-Year Institutions Web URL

Source: Community College Journal of Research and Practice

Federal Pell Grant Eligibility and Receipt: Explaining Nonreceipt and Changes to EFC Using National and Institutional Data Web URL

Source: Journal of Student Financial Aid

Federal Student Aid: Need Analysis Formulas and Expected Family Contribution PDF

Source: Congressional Research Service

Financial Need and Aid Volatility Among Students with Zero Expected Family Contribution PDF

Source: Journal of Student Financial Aid

How to Answer FAFSA Questions About Homelessness Web URL

Source: SchoolHouse Connection

Need Analysis AskRegs Knowledgebase Q&As Web URL

Source: National Association of Student Financial Aid Administrators

Need Analysis Self-Study Guide

Source: National Association of Student Financial Aid Administrators

Race and Ethnicity in Higher Education: A Status Report PDF

Source: American Council on Education

Relationship of Expected Family Contribution to Student Success at Belhaven University Web URL

Source: ProQuest LLC

The Distributional and Cost Implications of Negative Expected Family Contributions Web URL

Source: Journal of Student Financial Aid

The Impact of Pell Grant Eligibility on Community College Students' Financial Aid Packages, Labor Supply, and Academic Outcomes

Source: Journal of Educational Evaluation and Policy Analysis, AERA

The Insurance Value of Financial Aid PDF

Source: National Bureau of Economic Research

The Real Price of College: Estimating and Supporting Students’ Financial Needs PDF

Source: The Hope Center