1. What is the FAFSA EFC?

The Expected Family Contribution (EFC) is a measure of your family's financial strength and is used to determine your eligibility for federal student aid. It's calculated from the information you provide on your Free Application for Federal Student Aid (FAFSA).

2. How Does the Calculator Work?

The calculator uses a simplified version of the FAFSA formula:

Where:

• \( Available Income = Income - (12,000 + 3,000 \times (Family Size - 1)) \)
• \( Available Assets = Total Assets \times 0.20 \)

Note: The actual FAFSA formula is more complex and considers many additional factors.

3. Importance of EFC Calculation

Details: Your EFC determines your eligibility for federal grants, loans, and work-study programs. A lower EFC means more financial aid eligibility.

4. Using the Calculator

Tips: Enter your total family income, total assets, and family size. Use gross income before taxes and include all taxable and untaxed income.

5. Frequently Asked Questions (FAQ)

Q1: What is a good EFC number?
A: Lower is better. An EFC of 0 means maximum aid eligibility. Many selective colleges expect families to contribute more than their EFC.

Q2: Does this calculator give my official EFC?
A: No, this is an estimate only. Your official EFC comes from completing the FAFSA.

Q3: What assets are included in EFC calculation?
A: Cash, savings, investments, and business/net worth. Primary home equity and retirement accounts are excluded.

Q4: How often should I calculate my EFC?
A: Annually, as financial circumstances change. Calculate early to plan for college costs.

Q5: Can I reduce my EFC?
A: Yes, through legal strategies like maximizing retirement contributions or paying down debt before filing FAFSA.