What is the Expected Family Contribution (EFC)?
The expected family contribution (EFC) is a key factor that determines whether your teenager can receive college financial aid. Your EFC takes into account your family income, savings and other factors. As a general rule, you as parents are expected to contribute about 6% of your savings toward your child s education, and your child is expected to use about 35% of his or her savings for college. Your EFC is compared to the cost of attending the college your child has selected to determine financial aid eligibility. For more information, check this Department of Education page or the department s Student Guide Web site.
A key factor that determines whether your teenager can receive college financial aid is your expected family contribution, or EFC. Your EFC is calculated according to a formula set by Congress. It takes into account the family s income, savings and other factors. As a general rule, parents are expected to contribute about 6 % of their savings to fund their child s education. But, since the child presumably has fewer overall expenses, about 35 % of his or her savings will be expected to be used to meet college costs. Your EFC will then be compared to the cost of attending the college your child has selected to determine whether he or she is eligible for financial aid.
