In this video, we're going to talk about what EFC means in the financial aid process. So, EFC stands for expected Family Contribution. It's basically a measure of you and your family's financial strength. When you fill out the FAFSA form, which can be done at fafsa.gov, you're going to get a student aid report in a few weeks. You're going to get the student aid report, and it's going to have a number on it called the EFC. The EFC, or expected Family Contribution, could be something like, let's say, five thousand seven hundred dollars. It could be zero, it could be thirty thousand dollars. Again, it's a measure of you and your family's financial strength and ability to pay for college. The EFC is calculated and it basically has two parts. It's not going to tell you this on the student aid report, but there are two parts to it. One part is your contribution, the amount that you should be able to pay as a student based on your income, your assets, and also your parents' contribution. When filling out the FAFSA, remember it is based on the custodial parent, the parent you were living with in the last year. There is a specific formula that converts the number of assets you have as a student or your parent has. If you're independent, it completely ignores your parent. This formula also takes into account your income, assets, family size, and how many people are in college. You can actually go to studentaid.gov and look up and find the EFC formula for the specific year you're applying for college. The formula may change slightly from year to year. The EFC, once you get it, is just one number and it is only for one year. You're going to apply for the FAFSA...
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Video instructions and help with filling out and completing Where Form 8865 Contributed
