Private College Student Loan

EFC for college is 1825, does this mean I MUST pay this much out of my pocket BEFORE grants or loans?

I have an EFC of 1825. Does this mean I have to pay this amount out of my pocket before receiving any grant money? If I do have to pay this before grants, can I still apply for student loans? If there is more info needed to answer this, I will post again. Thanks for any help. Signed: A soon to be middle aged full time college student.

Public Comments

1. No, that is not the way it works. Your EFC is just an estimated amount that FAFSA feels you can contribute towards your education. With an EFC that low, you will qualify for a pell grant and loans with a low interest. You don't have to pay out the 1800 first, and then get the grant. Your school will send a financial aid package that explains what you qualify for. After you (or your grant/loan) pays for tuition and books the remaining money will be sent to you in the form of a check to help with any other expenses. Good luck!
2. No. This is nothing you have to pay to the school. This is what the federal government feels you should be able to contribute toward your education. Schools use the EFC in conjunction with the COA (Cost of Attendance) to determine a student's award package. Say your COA is 18000; 18000-1825 = 16175. The 16175 is your "Gross Need". With an EFC of 1825, if your SAR says you are eligible for Pell, then your Pell award would be $2460 (full time/1230 per semester). 16175 - 2460 = 13715 which is now considered your "Unmet Need". As you are awarded more aid, your Unmet Need goes down. Your total financial aid package (grants/scholarships/loans) cannot exceed your COA. Talk to a financial aid officer at your school for more information. Good luck!
3. All i know is the lower your EFC the more financial Aid you qualify for.
4. The Expected Family Contribution (EFC) is how much money you are expected to pay toward your college education for one year. Typically, the lower your EFC, the more financial aid you will receive. Factors such as family size, number of family members in college, family savings, and current earnings (information you provide on the FAFSA) are used to calculate this figure. Once your FAFSA is processed, you will receive a Student Aid Report (SAR) with your official EFC figure. The same information is also sent to the schools you listed on the FAFSA. The financial aid office of your school will use your EFC to determine your financial need. Need is defined as the difference between the cost of attending college and your EFC: Cost of attendance (COA) – EFC = Financial need Based on that, the financial aid office will prepare a financial aid package and craft a financial award letter. So yes, you are expected to pay the $1,825 before grants or loans. If your school costs more than that, you can still apply for the loans. Good luck!