# Is A High Or Low EFC Better?

## How much EFC is too much?

There is no upper limit on the EFC.

Some very wealthy families will have EFCs that exceed the cost of an expensive private university.

Here is an example of an EFC that a higher-income couple with two children (only one in college) could generate..

## What does an EFC of 20000 mean?

Merit Student With EFC of 20000 This merit student didn’t qualify for any need-based loans or grants.

## Is the EFC a dollar amount?

According to the FAFSA official site, “The Expected Family Contribution (EFC) is a measure of your family’s financial strength, and is calculated according to a formula established by law” The EFC will be expressed as number equivalent to a dollar amount. For example, 12000 is \$12,000.

Zero is the lowest EFC number; 99,999 is the highest. If a dependent students’ family’s income is less than \$24,000 and government assistance was needed for that filing year, the EFC will automatically be zero. A zero means a family has no ability to contribute to the student’s education.

## What is a fafsa EFC number?

What’s the Expected Family Contribution (EFC)? Your EFC is an index number that college financial aid staff use to determine how much financial aid you would receive if you were to attend their school. The information you report on your FAFSA form is used to calculate your EFC.

## What does an EFC of 3000 mean?

. If they have an EFC of only \$3,000, they should qualify for all kinds of grants, because either they have a lot of kids in college, or they are very low income. EFC is generally equal to about 25% to 28% of your gross income, so they must only have about \$12,000 a year in gross income.

## What does an EFC of 8000 mean?

It’s really just a simple math! For example, if your EFC is \$8,000, and the college costs \$15,000 to attend, you may be eligible for \$7,000 worth of aid. … The lower your EFC, the more likely it is that you will be eligible for need-based aid, such as grants and subsidized federal loans.

## How do I lower my fafsa EFC?

“Common advice: pay down debt and make big purchases before filing the FAFSA.” If you have a lot of savings consider spending some of those savings towards paying off your debt. This has the primary advantage of reducing your EFC, the asset base by which your need is assessed.

## What does an EFC of 5000 mean?

Say your EFC is 5,000. That means your family is expected to contribute 5,000 to your yearly college costs. Every school is going to have a different cost of attendance (COA) depending on how much you’ll spend on tuition, books, housing, and other factors.

## Is higher EFC better?

The higher your EFC, the more the federal government estimates your family can pay for your college education. No wonder many families are caught off guard by an EFC they believe to be too high–this could indicate that colleges will be less generous when making financial aid offers to their students.

## Why is my EFC so high?

If you have a high EFC, it means the feds think your family will be able to cover a bigger portion of your cost of a higher education —especially if your EFC is more than the cost of the college your student is attending. In those cases, the government assumes your family can afford all the costs of college.

## What is a high fafsa EFC?

A high EFC score means your student will receive less need-based federal financial aid to attend college. The closer you can get to zero, the more federal dollars you’ll have access to for paying for college.

## Is fafsa EFC per year or total?

Your client will probably gasp at the amount the government expects them to contribute to their child’s college education every year. (The EFC is an annual amount.) Families with a combined adjusted gross income of around \$150,000 can expect to have an EFC that exceeds \$30,000 for the year just from income.

## Why is my EFC so high independent student?

The answer is based on the income and assets you or your parents reported on the FAFSA form. … If you are a considered independent for the purposes of financial aid, then your income is considered. If your EFC is high, it should be because your income is high.

## What is a good EFC number?

0An EFC of 0 is generally the most desirable as it indicates that you have the greatest financial need and therefore, should be offered the maximum amount of financial aid. However, understand that a 0 EFC does not mean that you will pay nothing out of pocket.

## What is the average EFC?

The EFC for the average American household with an AGI of \$50,000 will usually range from \$3,000 to \$4,000. There is no cap on EFCs so some very wealthy families will have EFCs that exceed the cost of an expensive private university.

## Does fafsa look into bank accounts?

Does FAFSA Check Your Bank Accounts? FAFSA doesn’t check anything, because it’s a form. However, the form does require you to complete some information about your assets, including checking and savings accounts.

## What is a EFC score?

So what is an EFC? 2. Your Expected Family Contribution (EFC) is an index number that colleges use to determine how much financial aid you’re eligible to receive. Your EFC is calculated according to a formula established by law and the information from your Free Application for Federal Student Aid (FAFSA®).

## What is the highest EFC number possible?

There is no maximum EFC, so it can range from zero to any number. As college costs typically increase each year, the financial aid formula that calculates EFC is adjusted for inflation each year, says Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com.