what is expected family contribution

In the post-secondary education system of the United States, the Expected Family Contribution (EFC) is an estimate of a students, and for a dependent student, their parent(s) or guardian(s), ability to pay the costs of a year of post-secondary education. The EFC is calculated according to a formula established by law and considers the familys taxed and untaxed income, assets, and benefits. The EFC is used by college financial aid staff to determine how much financial aid a student would receive. It is important to note that the EFC is an estimate, and the amount a family will actually pay can be significantly below or above this number. There are several considerations that can potentially reduce the EFC when calculating financial aid eligibility, such as the number of family members in college. However, the actual impact on the final EFC calculation will depend on the specific circumstances of the family and the policies of the institution providing the financial aid.