The EFC is the formula developed by the U.S. Department of Education to determine the amount of money that a family is expected to contribute toward the cost of a college education. The score reflects the difference between the cost of college attendance and the amount of the expected contribution. In order to be eligible for the federal Pell grant, a family's score for the 2010-2011 school year cannot be higher than 5273.
The EFC is calculated based on dependent and enrollment status, household size, as well as income and assets. You may be eligible to receive an automatic score of zero if you and your family meet certain guidelines. These guidelines include: having participated in the federal free lunch or food-stamp program or earning less than $30,000 in the prior year and having filed either a 1040-EZ or 1040-A. The automatic zero means that neither you nor your family is expected to contribute to the cost of your college education.
There are additional eligibility requirements for obtaining federal financial aid. You must be a U.S. citizen, national or permanent resident with a valid Social Security number. Males must be registered with the Selective Service. In addition, you must make satisfactory academic process in order to remain eligible for federal funds.