What does EFC stand for in the context of education funding?

In the realm of education funding, EFC stands for Expected Family Contribution. This term is crucial because it represents the amount of money that a family is expected to contribute towards a student's college education, as determined by federal financial aid calculations. The EFC is a central component of the financial aid process, affecting eligibility for federal, state, and institutional aid.

The concept of EFC helps colleges and universities assess a family's financial situation in a standardized manner, which in turn informs the level of financial aid that the student may receive. It encompasses various factors such as family income, assets, and the number of family members attending college, thereby providing a comprehensive view of a family's capacity to pay for higher education expenses. Understanding your EFC is vital for planning and applying for financial aid, as it directly impacts the affordability of college education.