Question: What Does An EFC Of 20000 Mean?

What is considered a high EFC?

Any person with an EFC number at 0 will receive the maximum amount of student aid, while a number over 5273 will result in no aid at all.

The numbers, and the amount awarded, fluctuate annually.

The closer you can get to zero, the more federal dollars you’ll have to help pay for tuition and fees..

What does an EFC of 7000 mean?

Understanding Your EFC This number is the amount of money that you and your parents can afford to pay towards college. … 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.

What is an average EFC score?

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.

Is EFC a dollar amount?

Your EFC is a number used by your school to calculate how much financial aid you are eligible to receive. It is an index number — not a dollar amount of money your family will have to pay for college. The EFC is calculated according to a formula established by law.

What are the EFC ranges?

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.

Why does my EFC start with a 0?

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.

Is the EFC accurate?

If your EFC is greater than the cost of attendance, there’s a very slim chance you will receive any financial aid. … Essentially, many families will find that their EFC is unfair and not an accurate representation of what they think they can really pay.

What does EFC of 10000 mean?

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. … If your EFC is $10,000, your financial aid package may still require you to pay $12,000, $15,000 or $20,000, depending on the tuition and expenses each college charges.

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.

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 is the EFC formula?

More specifically, schools need the EFC number to calculate an equation measuring your “financial need” for the school year. The schools perform the following equation: Cost of Attendance (COA) minus Expected Family Contribution (EFC) equals the amount of Financial Need.

How is your EFC calculated?

How is your EFC determined? It’s generated by factors like age of oldest parent, how many kids you have in college, family size, parent income and assets, and student income and assets. Even if you look like other college families from the outside, your EFC may be very different, depending on these factors.

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.

What does my fafsa EFC number mean?

Expected Family ContributionYour Expected Family Contribution (EFC) is an index number that colleges use to determine how much financial aid you’re eligible to receive. … Note: Your EFC isn’t the amount of money your family will have to pay for college and it isn’t the amount of federal student aid you’ll receive.

What do I do if my EFC is too high?

Your EFC might be high enough to disqualify you from need-based aid, like grants, but you might still be able to get federal work-study or get federal student and parent loans. In order to access federal student loans and other types of financial aid, you still need to fill out the FAFSA.

What EFC number qualifies for Pell Grant?

If your EFC is at or below $5,711 for the 2020-21 academic year, you will be eligible to receive the Pell Grant. Each family’s financial situation is different, and there’s no one income cutoff that makes a student eligible or ineligible to receive the Pell.

Why did my EFC go down?

The EFC can change drastically from year to year. For example, if your family experiences financial hardship, such as a job loss, or if a sibling enters college while you’re in school, your EFC may go down. If your family’s financial situation improves, your EFC may go up, too.

Why is my fafsa EFC so high?

If your family has accumulated wealth and investments, your EFC can be high, even if your family’s income is low. … Parents that withdraw from their 401k to pay for a student’s education are in fact increasing their EFC, because that withdrawal is counted as untaxed income on the FAFSA.

Do I have to pay EFC?

When you file the Free Application for Federal Student Aid (FAFSA), your income, asset and personal information are used to calculate the Expected Family Contribution, which also is known as the EFC. … Despite the name, the expected family contribution has little to do with the actual amount you will have to pay.

What is the maximum EFC to get financial aid?

Although there are no FAFSA income limits, there is an earnings cap to achieve a zero-dollar EFC. For the 2020-2021 cycle, if you’re a dependent student and your family has a combined income of $26,000 or less, your expected contribution to college costs would automatically be zero.