"To understand what your Expected Family Contribution (EFC) is, it helps to first understand what it isn’t," Student Loan Hero reports.
..."To get a better sense of your own EFC, you first need to know what kind of federal aid applicant you are.
When SAI replaces EFC for the 2023-2024 academic year, don’t worry about wholesale changes to the formula used to determine your eligibility for aid. The National Association of Student Financial Aid Administrators wrote in its guidance, however, that some changes are afoot. Most notably:
● SAI would base Pell Grant award amounts more heavily on a student’s dependency status, among other household factors. Based on what we know today, it’s safe to assume that more lower-income students, independent or otherwise, will have access to higher grant amounts once the Student Aid Index is in place.
● SAI wouldn’t give the same break that EFC has afforded to families with multiple children enrolled in college simultaneously. It’s fair to expect that if you have two children in college by 2024, you would receive less federal financial aid than you would have in 2023."
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Publication Date: 3/30/2021