Why is FAFSA EFC so high?

The EFC is so high, more often than not, because of a high family income. As a general rule of thumb, the higher the household income gets, the steeper the EFC becomes. A high-income background makes financial aid experts think that their families can shoulder a bigger portion of the cost of college.

How do I lower my EFC on FAFSA?

Is an EFC of 10000 good?

In a perfect world, all schools would meet 100% of a family's financial need. So, if your EFC was $10,000 - no matter where you attend - you would know you wouldn't pay more than $10,000 each year. Unfortunately, this is simply not the case. Most schools do not meet 100% of financial need for all of their students.

What does an EFC of 20000 mean?

Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need. For example, if the total COA (Tuition & Fees, Room and Board, Books, Supplies, etc) at a particular school was $50,000, and the family's EFC from the FAFSA was $30,000, they would have $20,000 of financial need.

What does an EFC of 50000 mean?

What does an EFC of 50000 mean? Here's how: under the formula, the EFC is for the total family contribution, not per child. Even with an EFC as high as $100,000 (from income of about $200,000), after a 50/50 split the EFC is $50,000 for each child, less than the average cost of many elite schools.

Why is my Expected Family Contribution (EFC) from the FAFSA so high?

What does an EFC of 12000 mean?

For example, 12000 is $12,000. This means that the federal government (and colleges) expect your family to be able to reasonably contribute $12,000 per year towards your college expenses. That said, the EFC number is not the definitive amount your family must pay for school. Rather, the number is a starting point.

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.

What does an EFC of 40000 mean?

This means low-income students will often be eligible for more financial aid. For example: Say your EFC is $15,000 and your school's cost of attendance is $40,000. With this EFC, your calculated financial need would be $25,000. But if you had a higher EFC of $30,000, your financial need would be only $10,000.

What does an EFC of $14000 mean?

So, if a school's COA is $42,000 and the student's EFC is $28,000, the calculated financial need is $14,000. While your Expected Family Contribution will not impact non-need-based awards (like merit scholarships), the need-based aid you receive won't exceed your EFC.

What does an EFC of 5500 mean?

$3,500 subsidized loan limit ($5,500 total federal loan limit) $3,500 subsidized loan limit ($9,500 total federal loan limit) Second-Year Undergraduate Student. $4,500 subsidized loan limit ($6,500 total federal loan limit) $4,500 subsidized loan limit ($10,500 total federal loan limit)

Is a 20000 EFC good?

The reality is that families with an EFC of $20,000 or more will be expected to pay the equivalent to the tuition at a state school. The table shows some families would qualify for some aid based on an average total cost of $28,000 for public universities.

What does an EFC of 9000 mean?

If you attend three-quarter time (9-11 credits), you generally receive seventy-five percent as much COMA. Students in the EFC range of 5577 to 9000 will receive $0 COMA if enrolled half-time (6-8 credits). Students with a bachelor's degree are also eligible for COMA.

Can I change the EFC on FAFSA?

But even if you're a dependent, you still can have your EFC adjusted. A lot may change in your family's financial situation between the tax year reported on the FAFSA and the time that the school year actually starts.

Does EFC 0 mean full ride?

Students with a 0 EFC will receive the full Pell Grant amount, which is worth $6,495 as of 2021. Students with a higher EFC may receive a prorated Pell Grant or not be eligible for any Pell Grant funds.

What is the average EFC for FAFSA?

The overall average EFC is about $10,000, with an average of about $6,000 for students at community colleges and $14,000 at 4-year colleges. Slightly more than half of students have an EFC of $2,500 or less. Slightly more than 10% have an EFC greater than $25,000.

What EFC qualifies for Pell Grant?

Income Limit

The Department of Education will use your family's income and expenses to calculate your Expected Family Contribution (EFC). To be eligible for the Pell Grant for the 2021-2022 academic year, your EFC needs to be at or below $5,846. Because of this, there is no set income cutoff for Pell Grant eligibility.

How do middle class families pay for college?

Students and families who do not qualify for Federal Pell Grants and Institutional need-based aid have several different options including scholarships, Federal Work Study, Federal loans for students, Federal loans for parents, private educational loans, and family savings and out-of-pocket payments, including payment ...

How much should parents contribute to college?

First, in general, parents are expected to contribute up to 47% of their net income to the cost of college every year.

How is EFC calculated?

The student's EFC is determined by adding the student and spouse's contribution from available income to their contribution from assets and then dividing the sum by the number in college.

What does an EFC of 22000 mean?

For example, if the college's cost of attendance is $40,000 and your family's EFC is $22,000, then your financial need is $18,000 ($40,000 - $22,000). Some colleges are able to cover your full financial need. Other colleges can cover only a portion of your financial need.

What does an EFC of 3000 mean?

For a student with the average American household AGI of $50,000, their EFC typically ranges from $3,000-$4,000. Very wealthy families may receive an EFC that is greater than the cost of an expensive private university.

What is the highest possible EFC?

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.

What does a EFC of $6000 mean?

Use the EFC during your college selection process, because finances are a bigger deal than you think. In theory, if the FAFSA® reports that your EFC is $6,000, you'd only have to come up with $6,000 to help fund your education.

What does it mean if my EFC is 7000?

This number is calculated by each college and includes room and board, tuition, and miscellaneous fees. For example, if your EFC is $7,000 and the total cost of attendance for a particular college is $28,000, your total financial need would be $21,000.

Is the EFC accurate?

You'll find little help, though, in calling your financial aid office to declare that your EFC is “unfair” if you don't have a circumstance to prove it. Essentially, many families will find that their EFC is unfair and not an accurate representation of what they think they can really pay.