Quick Answer: How Much EFC Is Too Much?

Is a higher or lower EFC better?

Generally the lower a family’s EFC number, the more likely a student will receive financial aid.

But an EFC’s significance is often more complicated.

“There’s no ‘good’ EFC because it is a range..

What is the income limit for fafsa 2020?

Although there are no FAFSA income limits, there is an earnings cap to achieve a zero-dollar EFC. For the 2020-2021 cycle, if you’re a dependent student and your family has a combined income of $26,000 or less, your expected contribution to college costs would automatically be zero.

What is the maximum income to qualify for financial aid 2019?

Your eligibility is decided by the FAFSA. Students whose total family income is $50,000 a year or less qualify, but most Pell grant money goes to students with a total family income below $20,000. The total amount of Pell money available to colleges is determined by government funding.

Is the EFC number a dollar amount?

According to the FAFSA official site, “The Expected Family Contribution (EFC) is a measure of your family’s financial strength, and is calculated according to a formula established by law” The EFC will be expressed as number equivalent to a dollar amount. For example, 12000 is $12,000.

What does an EFC of 5000 mean?

Say your EFC is 5,000. That means your family is expected to contribute 5,000 to your yearly college costs. Every school is going to have a different cost of attendance (COA) depending on how much you’ll spend on tuition, books, housing, and other factors.

How can I get more money from fafsa?

File the FAFSA to Get More Money in CollegeFile the FAFSA early. … Minimize income in the base year. … Reduce reportable assets. … Save strategically. … Spend strategically. … Coordinate 529 college savings plans with the American Opportunity Tax Credit (AOTC). … Maximize the number of children in college at the same time.More items…•

What is the Fafsa EFC?

What’s the Expected Family Contribution (EFC)? Your EFC is an index number that college financial aid staff use to determine how much financial aid you would receive if you were to attend their school. The information you report on your FAFSA form is used to calculate your EFC.

Does fafsa know how much money I have?

The FAFSA will specifically ask “As of today what is the cash balance of checking, savings…” accounts for the student. Because the question is phrased “As of today” it leaves room for interpretation. … Cash assets sink financial aid eligibility, but are virtually untraceable unless admitted to on the FAFSA.

What is the lowest EFC for financial aid?

$0The lowest possible EFC is $0. An EFC of zero means that the financial aid formula has determined that the family cannot afford to pay anything towards college. Families with adjusted gross incomes (AGI) of $25,000 or less have an automatic EFC of $0.

Why does my EFC start with a 0?

Zero is the lowest EFC number; 99,999 is the highest. If a dependent students’ family’s income is less than $24,000 and government assistance was needed for that filing year, the EFC will automatically be zero. A zero means a family has no ability to contribute to the student’s education.

What is a good EFC amount?

Any person with an EFC number at 0 will receive the maximum amount of student aid, while a number over 5273 will result in no aid at all. The numbers, and the amount awarded, fluctuate annually. The closer you can get to zero, the more federal dollars you’ll have to help pay for tuition and fees.

What if my EFC is high?

If you have a high EFC, it means the feds think your family will be able to cover a bigger portion of your cost of a higher education —especially if your EFC is more than the cost of the college your student is attending. In those cases, the government assumes your family can afford all the costs of college.

Is an EFC of 10000 good?

The last factor to consider is how much of your financial need each college is able to meet. In a perfect world, all schools would meet 100% of a family’s financial need. So, if your EFC was $10,000 – no matter where you attend – you would know you wouldn’t pay more than $10,000 each year.

Why is my fafsa EFC so high?

For most students, a high household income will be the reason for a high EFC. … This makes it perhaps the most important factor in the EFC formula. The EFC formula takes into account both parents’ incomes and the student’s income, with higher-income families expected to contribute more to their student’s education.

What is the income limit for Pell Grant 2020?

$5,140To meet the Pell Grant requirements, you’ll need to meet all the federal eligibility requirements for financial aid and prove that your expected family contribution is at or below $5,140 for the 2019-2020 school year. Currently, the maximum Pell Grant award is $6,195.

Why is my EFC 00000?

An EFC of 00000 means that your expected family contribution to college is $0.00. It also means you are highly eligible for need-based aid from the school you plan on attending and from the government such as Pell Grants and Subsidized loans.

What is the highest EFC number?

999,999Generally speaking, the lower the EFC, the higher the financial aid award will be. Zero is the lowest EFC number (indicating that the family cannot afford to pay anything) and 999,999 is the highest.

How do I reduce my EFC?

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.