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
Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.
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.
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.