|
|
|
Expected Family Contribution |
|
|
|
Expected Family Contribution
Eligibility for many aid programs is, in part, determined by a students Expected Family Contribution (EFC).
The EFC is a number derived from information submitted on the FAFSA; this calculation takes into account such factors as AGI, non-taxable income, assets, and household size.
- If a student is dependent (by FAFSAs standards), the EFC is based on both student and parent information.
- If a student is independent (again, by FAFSAs standards), only the studentsand, if applicable, their spousesinformation is included in the EFC calculation.
Once the FAFSA processing system determines a students EFC, the EFC is provided to all the schools listed on the students FAFSA.
The EFC represents the amount that the federal government expects a students family should be able to pay towards the students education. However, the EFC is not a set amount that the family owes to Indiana University or will pay towards the students cost of attendance; sometimes a family pays more than their EFC, and sometimes they pay less.*
It is better to view the EFC as a tool which helps us to determine the type of aid for which a student is eligible and enables us to create a students financial aid package.
Our office utilizes the EFC in the following formula:
| |
Cost of Attendance (Budget) |
- |
EFC |
| |
|
| |
Need |
The eligibility for some awards is directly connected with the EFC; other awards require a certain level of need. For more information on the eligibility requirements for specific aid programs, click here.
*For FAFSA purposes, a dependent students family (as in Expected Family Contribution) consists of the student and their parent(s)/step-parent(s). An independent students family consists of the student and, if applicable, the students spouse. Essentially, anyone whose financial information is included on a students FAFSA is considered that students family when the EFC is calculated.
|
|
