The Expected Family Contribution (EFC) is the amount of money the family is expected to contribute each year toward the student's cost of attendance. It is the figure that the colleges then use to determine the student's financial aid eligibility.

The EFC is calculated from the data entered on the FAFSA or other financial aid application that the colleges require. This is an important number to be aware of before completing any financial aid forms.

As an example, say a family's EFC is 24,000. If the cost of attendance at the college of choice is $40,000 per year then this family has a good chance of receiving some type of financial aid from the college. There are different types of aid that the colleges may offer. As long as your student is desirable to them, they may close that gap of $16,000 ($40,000 - 24,000) with a combination of scholarships, grants, subsidized and unsubsidized student loans, parent loans, work-study programs, etc. Obviously, the best type of financial aid to receive are the scholarships and grants as we refer to these as "free money."

So you can see how getting an early start and strategically positioning your family's finances and reducing your EFC can wind up saving you tens of thousands of dollars over the course of four years!

You might be able to find an EFC calculator online maybe even directly through one of the college's websites. However, having us assist you with our expertise, we can present various strategies and work out different scenarios that may help you reduce your EFC.

Currently, we are offering this service for free to people who attend our workshops. Click here to view a list of our upcoming workshops.