Like most government programs, federal student aid seems like a much more difficult thing to understand than it really is, and it is fairly simple to explain expected family contribution or EFC.

college1 Expected Family Contribution Explained Typically, the lower your EFC number is the greater amount of financial aid you will get. The government’s calculations factor in things like your family size, how many family members are currently in college, how much money your family has in the bank, and what your family’s current earnings are- this is all information that you supply to them via the FAFSA application form. (FAFSA stands for Federal Aid for Students Application.)

After your FAFSA application is processed, you will get an SAR (Student Aid Report) which will contain your official EFC figure. That figure is also supplied to the school or schools you listed on your FAFSA. The school’s financial aid office uses that information as well to determine how much you need and how much it can offer you in assistance, and what types of assistance. Financial aid is typically figured by taking the full cost of attendance (COA) of a school (including tuition, transportation, books, and room and board) minus the EFC number to get the true financial need. Based on those numbers, the school will put together a package and send you an award letter. Based on that, the financial aid office will send you an award letter that details the financial aid package it has put together for you.

Though your EFC will not change from school to school, the amount you actually will have to pay out of pocket might. The federal government’s EFC determines eligibility for federally-sponsored aid like grants and loans, and Federal Work Study Programs. Many universities also use some additional criteria in the family’s financial situation to determine need for additional aid from college or private funds. They may use their criteria in place of, or in addition to, the federal EFC numbers to ensure that you get the greatest amount of financial assistance possible.

Quite simply, the EFC or Expected Family Contribution is the amount you and your family should expect to pay out of pocket for that particular year of your education. (And yes, it does need to be filed annually while you are attending school.) Your parents, and you, share the responsibility of paying for college with the government and your school.