Filling out a FAFSA (Free Application for Federal Student Aid) is a tedious but essential process for any potential student hoping to obtain financial assistance. Knowing some of the terminology can make the task a little easier. One of the key terms an applicant should become familiar with is EFC.

SAR

After successfully completing a FAFSA, a person will receive a SAR (Student Aid Report) in the mail or online. This report contains a summarized list of the information provided by the applicant. This is the document that will contain the applicant's EFC.

Definition

EFC, when dealing with a FAFSA, stands for Expected Family Contribution. In other words, it is the amount of money a person and/or his family will be expected to contribute toward tuition and other higher education expenses.

Significance

People hoping to receive federal financial aid will want a low EFC. A high EFC indicates that, in accordance to the financial information provided, the applicant can be counted on to pay more out of pocket for his education. The lower the EFC, the higher the amount of aid received.

Formula

The EFC is an important factor in the equation that determines how much aid, if any, an applicant will receive. The school to which the applicant has applied will subtract this number from its COA (Cost of Attendance) to determine final award amounts. COA - EFC = Total financial need.

Considerations

Those looking to legally reduce their EFC to maximize financial eligibility can look online for student assistance sites such as FinAid.

Source:

College Answer, Sallie Mae

FAFSA Online

FinAid, SAR and EFC