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How to Pay the EFC With 529 Funds

Your EFC (expected family contribution) is a calculation, using a formula set up by law, that details your family's ability to pay for your college education. It takes into consideration your family's income, assets, benefits, size and number of other children attending college. It determines how much student aid you're eligible to receive from the federal government. A 529 is a tax-advantaged education savings plan used to pay for your college expenses. Your EFC reflects your federal aid, not your college tuition and expenses. You may pay less for college, depending on your private aid award.

Instructions

- 1
  Fill out a FAFSA (Free Application for Federal Student Aid) application. Federal officials who review the FAFSA will determine your EFC.
- 2
  Add the amount of federal aid you're eligible to receive to your state and private aid awards.
- 3
  Subtract this value from your total college expenses, including room and board, tuition, supplies and books. The remaining amount is the portion of EFC you must pay.
- 4
  Withdraw money from your 529 account to cover remaining schooling costs. The 529 rules allow you to use a 529 account to pay for tuition, fees, books, supplies (such as art supplies) and equipment (such as a microscope), if you're enrolled in a course where they're required. If your school mandates Internet use, you can also use 529 funds to buy a computer and pay for Internet access.

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