In order to understand what the FAFSA EFC is, you have to be sure you know what the FAFSA is in the first place. It is the Free Application for Federal Student Aid, and this is the document that generates something known as the SAR or Student Aid Report that is sent to the schools and institutions that a student indicates on their basic application.

When Is FAFSA EFC Taken Into Account

The SAR is received by the school or group in question, and then the determination is made as to whether or not they get financial support. This is where the FAFSA EFC enters the equation. The EFC part of the FAFSA EFC means the “estimated family contribution,” and the lower that this figure is the likelier it is that the student will receive a large amount of support.

Why? The FAFSA EFC figure is calculated in a very basic way. The financial aid office for the school in question simply takes their cost of attendance, subtracts the FAFSA EFC figure from the form, and uses the result to understand if there is financial need. For instance, let’s say that it cost ten thousand dollars for your school, and that your FAFSA EFC figure was four thousand dollars. That leaves a difference of six thousand dollars that the school would help you to fund by finding loans, grants, scholarships or other sources.

Tricks For FAFSA EFC

One of the “tricks” with the FAFSA EFC is the fact that it actually differs from school to school. This is because some schools will use the federal method, while others use their own method to calculate the final figure.

The federal version of the FAFSA EFC considers family income, assets, the size of the household, the number of people in school. When the schools uses this method for calculating the FAFSA EFC it is also going to use the figures to determine if the student is eligible for things such as Pell Grants, Federal Loans, or even the Work Study programs.

Additional Factors In FAFSA EFC

Many institutional methods for the FAFSA EFC consider additional factors where the family’s financial condition is concerned. This sort of method is also going to negate the federal grants options and replace them with “in house” or institutional funds instead. For example, a school may have a private fund that it administrates, and you may receive aid directly through this fund rather than the federal grant option that would apply to a school using the federal Considering the FAFSA EFC approach.

You must not overlook the simple fact that the FAFSA EFC also has to consider your financial obligations too. You are going to always be seen as partially responsible for your college expenses, and this means that you will have to include your contribution to the EFC as well.

It is a wise idea to work with a financial aid office (either in your current high school or intended college) to understand how their determine the Considering the FAFSA EFC. This is going to be very useful in helping the student to understand if they will have a larger financial liability than at another school, and this is a common factor in selecting a school.