Expected Family Contribution (EFC)
The Expected Family Contribution (EFC) is in theory a measure of a family’s ability to contribute towards a student’s cost of attendance (COA), calculated according to a formula established by law. It is more realistically a rationing tool that compares the relative financial strengths of all families applying for aid. It is one component of the need formula: COA – EFC = Need. The EFC formula, which is defined in law by Congress, considers a family's taxed and untaxed income, assets, size and the number of family members who will attend college during the year.
Related topics in this Index: Need Analysis; Cost of Attendance; Professional Judgment
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Statutory Authority
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Regulations
The law prohibits ED from regulating any aspect of need analysis, including expected family contribution. See Subtopics for other related regulations. -
ED References
See also Subtopics for more specific references.-
Federal Register, 5/31/2019 [Federal Need Analysis Methodology for the 2020-21 Award Year]
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Federal Register, 6/8/2018 [Correction: Federal Need Analysis Methodology for the 2019-2020 Award Year]
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Federal Register, 5/17/2018 [Federal Need Analysis Methodology for the 2019-2020 Award Year]
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Federal Register, 5/01/2017 [Federal Need Analysis Methodology for the 2018-19 Award Year]
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The EFC Formula Guide, 2020-21
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The EFC Formula Guide, 2019-20
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The EFC Formula Guide, 2018-19
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2019-20 FSA Handbook, Vol. AVG
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2018-19 FSA Handbook, Vol. AVG
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NASFAA Publications and Articles
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NASFAA AskRegs Knowledgebase
Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.
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NASFAA U Authorized Events
NASFAA U Authorized Events are a comprehensive set of instructional materials for teaching financial aid concepts to groups of individuals. Materials include a study guide, instructor guide and accompanying presentation slides.
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NASFAA U Self-Study Guides
NASFAA U Self-Study Guides are written for the independent learner. Each Self-Study Guide includes multiple lessons with a variety of exercises to reinforce each lesson. Individuals do independent study and take quizzes in a traditional paper format (not online). Then you can qualify to take a test and earn a professional credential.
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Subtopics
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Age of parent / Parents’ Education Savings and Asset Protection Allowance
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Age of student / Asset Protection Allowance
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Assets
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Excluded assets
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Included assets
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Ownership
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Protection allowances
See Age of parent or Age of student
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Qualified education benefits
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Rental Property
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Take-back mortgages
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Trust funds
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Auto Zero EFC
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General information
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Auto zero EFC flag
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Dislocated worker/displaced homemaker definitions
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Foreign tax return
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Students whose parent died in the line of duty as a public safety officer
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Student whose parent died as a result of service in Iraq or Afghanistan
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Data elements used in EFC determinations
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Dependency status/Definition of independent student
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Definition of independent student
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Homelessness determinations
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Dependent student EFC calculation (Formula A)
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EFC change flag
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EFC Formulas
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EFC Worksheet
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Enrollment periods other than nine months (Alternate EFCs)
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Household (family) size
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Income
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Cash support and in-kind income
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Combat pay
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Excluded income: general information
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Extended Foster Care Payments
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Indicators of income
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Prenuptial agreements
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Untaxed income: general information
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Wages vs. student financial aid
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Income protection allowance components
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Independent student with dependents other than a spouse EFC calculation (Formula C)
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Independent student without dependents other than a spouse EFC calculation (Formula B)
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Marital status
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Marital status of student
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Remarried parent
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Same-sex marriages (Defense of Marriage Act – DOMA)
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Surviving parent/stepparent
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Unmarried parents living together (including separated or divorced parents living together)
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Number in college
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Primary and secondary EFCs
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Simplified formula (Simplified needs test)
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