The Expected Family Contribution, or EFC, is an index number used by college financial aid to determine the amount of financial aid you are eligible for.
» MORE: Your guide to financial aid
The EFC will be renamed the Student Aid Index, effective July 2023 for the 2023-24 academic year.
How is the EFC calculated?
The EFC is calculated using the information from the Federal Application for Federal Student Aid, or FAFSA. It factors in your parents’ income, investments and other assets, as well as the number of people in your family and whether any of them are also attending college that year. You’ll see your EFC listed in the upper right corner of your Student Aid Report, as long as your FAFSA was completed in full.
» MORE: What is financial aid?
Why does your EFC matter?
A college’s financial aid staff uses your EFC to determine your financial need. They take the school’s total cost of attendance, including tuition, fees and room and board, then subtract your EFC to calculate the maximum amount of need-based aid you’re eligible for.
Say, for example, a school’s total cost of attendance is $20,000 and your EFC is $4,000. You could qualify for up to $16,000 of need-based aid through programs like federal Pell Grants, direct subsidized loans and work-study.
The amount you receive depends on funding availability at your school. For example, Pell Grant and work-study programs each have limited funds available every year, so you might not get the full amount you qualify for if you apply late in the FAFSA season. Colleges aren’t required to meet 100% of a student’s demonstrated financial need (that’s the total cost minus your EFC).
If you don't get enough financial aid, schools often suggest filling that gap with aid that's not based on financial need, such as direct unsubsidized loans and federal PLUS loans.
» MORE: How to get more financial aid