CHAPTER 1: Analysis of EFC, Merit & Costs
The calculation called Expected Family Contribution (EFC) is the basis by which colleges determine NEED-Based Financial Aid Eligibility. If your EFC is less than a college’s COA (Cost of Attendance), then you may receive some financial aid based on your family’s need. If your EFC is higher than a college’s COA, then you will receive no financial aid based on need. However, many students receive MERIT-Based Financial Aid, which is not affected by EFC.
For need-based students, the Actual Out-of-Pocket Cost for a college can vary significantly from the Estimated (Average) Out-of-Pocket Cost due to the college’s “Differential Packaging Policy”. For example, if the Average % Need Met by a private university is 80%, a student in the upper 10% of the applicant pool might be offered 95% of their need/eligibility, while a student in the lower 10% may be offered only 70%. The same philosophy holds true for the Gift Aid:Self-Help ratio.
CHAPTER 1 Contents
- EFC Calculations
- FM (Federal Methodology)
- IM (Institutional Methodology)
- Detailed EFC Report
- The Four Sub-Calculations Making Up Your EFC
- EFC Due to Parent Income/Assets
- EFC Due to Student Income/Assets
- Aid Eligibility Comparison Report
- Needs Analysis
- Financial Aid Statistics
- Estimated (Average) Out-of-Pocket Cost (based on need)
- College Statistics (Enrollment/Grad Rates/Merit Aid/etc.)
- Conclusions and Recommendations