Expected Family Contribution (EFC)
What Is Expected Family Contribution?
Expected Family Contribution (EFC) was a financial aid formula previously used to estimate how much a student’s family could contribute toward college expenses. The calculation was based on financial information provided on the FAFSA.
The EFC has largely been replaced by the Student Aid Index (SAI) under recent financial aid reforms.
Why It Matters
Understanding the Expected Family Contribution helps explain how financial aid eligibility was calculated in previous years. Some financial aid documents and older college materials may still reference the EFC.
The EFC was used by colleges to determine a student’s financial need.
How Expected Family Contribution Worked
The U.S. Department of Education calculated the EFC using FAFSA information such as:
- family income
- assets and savings
- household size
- number of family members attending college
Colleges used the formula:
Financial Need = Cost of Attendance − Expected Family Contribution
Example
A student’s FAFSA produced an Expected Family Contribution of $4,000. If the school’s Cost of Attendance was $24,000, the financial aid office would estimate $20,000 in financial need when building the aid package.
Expected Family Contribution vs Student Aid Index
- Expected Family Contribution was the previous financial aid calculation.
- Student Aid Index is the current formula used today.
FAQs About Expected Family Contribution
Is EFC still used today?
Most financial aid calculations now use the Student Aid Index.
Did EFC represent what families must pay?
No. It was only used to estimate financial aid eligibility.
Can EFC appear on older financial aid documents?
Yes, especially in materials from earlier aid years.
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