How to Calculate the EFC in an Application for College Financial Aid

Paying for college is a concern for many families, as the cost of college rises and the college application process becomes more competitive. While all students can apply for both university and outside scholarships, the amount of scholarship money they receive still may not cover the entire cost of college. Additionally, while families must pay the cost of tuition, they may also cover living expenses, books, health insurance and other miscellaneous expenses. To apply for financial aid, which helps pay for these expenses through a combination of grants and loans, students must complete the Free Application for Federal Student Aid. The FAFSA determines how much aid a student will receive based on their parents' income. The difference between the amount of financial aid a student receives and how much her parents must pay is called the Expected Family Contribution. The lower a student's EFC, the more financial aid she will receive.

Things You'll Need

  • Cope of tax return forms
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Instructions

    • 1

      Gather student and parent tax information and social security numbers.

    • 2

      Navigate your web browser to the FAFSA website and enter your identification information to access your account.

    • 3

      Choose the best option next to the questions in the "Student Status" section. The questions in this section will determine if the student is applying as a dependent of his parents or independent. As such, students who rely upon their parents for income will file as dependent, and those who do not will claim "independent." Students whose parents make a higher income will be at an advantage to file as independent if they themselves do not make a lot of money. However, this will require that the student's parents do not claim them as a dependent on their tax form.

    • 4

      Answer the questions in the section regarding "Household Information." This section will require that you supply your parents' marital information, as well as their family size and state of residence. For example, if your parents are still married and have three children, you will need to state that they are married with a family size of five.

    • 5

      Note whether other family members are in college on the "Family Information" page.

    • 6

      Complete the page that requests information about student and family income. These questions will require you to disclose the amount of money you receive from government assistant programs, social security benefits, inheritances and other sources of income. Your parents will need to disclose the value of all of their assets, including bank accounts and investments. Use the information provided on your tax return to complete the section.

    • 7

      Complete any subsequent sections. The FAFSA will display your Expected Family Contribution based on the information you have provided.

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