How to Reduce Your Expected Family Contribution

How to Reduce Your Expected Family Contribution Understanding the Expected Family Contribution The Expected Family Contribution is a measure of how much money a family might be expected to contribute to one academic year's worth of college expenses. The formula is used to highlight which students should most receive assistance (the lower the EFC, the higher eligibility for financial aid). The Expected Family Contribution takes the following factors into consideration: The family's taxed income from two years prior The family's untaxed income from two years prior The family's assets The family's benefits Family size Other family members who will be attending college during the academic year for which you are applying Related Articles What Is a Good EFC Number? What Is a Good EFC Number? What Does My EFC Code for Financial Aid Mean? What Does My EFC Code for Financial Aid Mean? 401(k) Tax Deductions 401(k) Tax Deductions There are two separate EFC calculations that can be used: the Federal Methodology (FM) and the Institutional Methodology (IM). The former is primarily used by public programs. Private institutions commonly use the second calculation. Legal Ways to Reduce Your Expected Family Contribution You should never commit fraud by lying. The Office of Inspector General prosecutes financial aid fraud aggressively and sends people to prison for purposely giving false information. Thankfully, there are smart, law-abiding strategies to keep your EFC low and accurate. Maximize Household Size The larger your household size is, the lower your EFC will be (in most cases). The Free Application for Federal Student Aid (FAFSA) considers someone a part of a household if they live at home and if the parent or parents provide more than 50 percent of the dependent's support. This is not usually something you can control, but if a sibling or an adult dependent (such as as a grandparent or aunt) is considering moving out but they're not sure, ask if they'd consider staying another year while you are in school. Increase College Attendance Among Family Members If you are considered a Dependent student on the FAFSA, the college enrollment status of your family members are important. If others in the family are also enrolled in at least a half-time enrollment status while you are attending college, then this can lower your EFC. If one of your parents or siblings are on the fence about enrolling in college, let them know that it could potentially help your financial aid eligibility.