Students can estimate their EFCs with a few simple calculations.
The EFC, or expected family contribution, is an estimation of how much money a student's family will be able to contribute to his/her college education. The amount of financial aid received---from the federal government and from individual institutions---is partially determined on EFC.
EFC is calculated based on a family's income as well as size, geographic location and number of members currently enrolled in college. The EFC is then subtracted from the school tuition cost. The difference represents the student's financial need, and financial aid is awarded based on this amount. A student can use online tools to find an unofficial estimate of his EFC.
Instructions
Calculation
1. Find an EFC calculator online.
2. Calculate student's net assets by adding student's cash, savings and checking balances with any real estate, business or farm he or she owns. Subtract any real estate or other investment debt, business debt, and farm debts from the first total. Enter this amount in the online calculator.
3. Calculate student's pre-tax earned income, pre-tax unearned income and U.S. taxes paid. Enter this information along with information about student's dependence status, state of residence, family size and number of people in college in student's family.
4. Repeat steps two and three with parent or guardian information. Information about parent(s) or guardian(s) income, age and state of residence is required.
5. Calculate EFC by clicking "Continue" or "Finish" depending on which website's calculator you use.
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