The EFC code formula criteria establish whether or not a student will qualify for federal financial aid, including the Pell Grant. Some of the criteria include family income, type of assets, size of the family and number of siblings currently in college. If the student EFC code number needed for financial aid is low, then the student will receive partial or full available grant funding.
Before your child begins the process of narrowing down the colleges of her choice, plan ahead on how she or you will be paying for it. Begin the process no later than the beginning of her junior year. Find out the requirements for receipt of financial assistance, including federal grants, student loans and possible scholarships.
Lower a potentially high EFC code before the child submits the FAFSA application: Spend down the child’s available assets as well as your own. If you were planning on purchasing your son a car or computer for college, buy it before you file the application. "Maximize your retirement fund contributions or prepay your mortgage if possible,” suggests Fin Aid website--Maximizing Your Aid Eligibility.