What is the new name for EFC?

The term “EFC” (expected family contribution) is changing With the 2024-2025 FAFSA, the term Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI) – this is a new need analysis formula that we will use when awarding need-based grants and scholarships.

What is EFC replaced by?

FAFSA Simplification Act and the Student Aid Index

One such change is replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI), which will be implemented for the 2024–25 award year.

What is EFC called?

Your Expected Family Contribution (EFC) is an index number used to determine your eligibility for federal student financial aid.

Is EFC the same as Sai?

This year's FAFSA process has introduced the Student Aid Index (SAI) which supersedes the Expected Family Contribution (EFC) formula. The SAI is similar to the EFC with a few different factors that will now be considered when determining the student's aid. To determine Student Aid Index, try the new SAI Calculator.

Is EFC and SAR the same?

After you file the Free Application for Federal Student Aid (FAFSA), you'll receive a Student Aid Report (SAR) that includes the expected family contribution (EFC) on the top right. The EFC is an index of the family's ability to pay for college and will help determine how much financial aid you are eligible for.

What is EFC?

Why is my EFC different?

If your family's income is higher, your EFC will be on the higher end of this percentage. For dependent students whose family's income is below $29,000 per year, your EFC number will automatically be zero.

Is EFC the amount I have to pay?

The total cost─which includes tuition, fees, housing and meal plan, and indirect expenses─minus your EFC is how much financial aid they estimate you'll need to attend the college.

What are the different types of EFC?

There are three regular formulas and a simplified version of each: • Formula A, for dependent students; • Formula B, for independent students without dependents other than a spouse; and • Formula C, for independent students with dependents other than a spouse.

What is the maximum Pell Grant for 2024 25?

Although $7,395 is the maximum Pell Grant Scheduled Award for the 2024-2025 award year, institutions are reminded that a student may be eligible to receive Pell Grant funds for up to 150 percent of the student's Pell Grant Scheduled Award for an award year.

What does the 6 digit EFC number mean?

EFC or Expected Family Contribution is the amount of money that a college estimates that your family can afford. This is calculated as part of your financial aid application process through the FAFSA, CSS Profile, or other financial aid forms.

What is EFC in simple terms?

Your EFC (Expected Family Contribution) is a measure of your family's financial situation. The EFC is used to determine your federal financial aid eligibility. Your EFC is not the amount of money you'll have to pay for college. It determines the amount of federal financial aid you may be eligible for.

Why is EFC so high?

EFC is based on the parents' and student's income and assets. A high EFC is likely the result of high income or a high value of assets as reported on the FAFSA. Assets considered include bank account balances, capital gains and, sometimes, equity held in businesses and real estate.

Why is EFC important?

The EFC represents the amount of money the family is expected to contribute to the student's education expenses, and is used by colleges and universities to determine the student's financial aid package. The lower the EFC, the more financial aid the student is likely to receive.

What is a Sai FAFSA?

GETTING STARTED. The Student Aid Index (SAI) is an eligibility index number that your college's or career school's financial aid office uses to determine how much federal student aid you would receive if you attended the school.

How is the SAI calculated for FAFSA?

How is the Student Aid Index (SAI) calculated? To calculate a Student Aid Index (SAI), the college or career school conducts a need-based analysis. The analysis takes into account the income and assets of you and your parents or spouse, if applicable.

Who calculates EFC?

The EFC for a dependent student is calculated using the FAFSA data for the student and his parents. The CPS calculates the parents' contribution (which includes their assets), the student's contribution from income, and the student's contribution from assets; the EFC is the sum of these three.

Do I get 20k if I had a Pell Grant?

If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt relief.

Do both parents have to fill out the FAFSA 2024 2025?

Beginning with the 2024-25 FAFSA, each contributor will complete their own section of the form.

Is the FAFSA changing in 2024?

Beginning with 2024-25, all persons on the FAFSA must provide consent for the Department of Education to receive tax information or confirmation of non-filing status directly from the IRS.

What is the highest EFC you can get?

Generally 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.

Does FAFSA still use EFC?

After the FAFSA simplification: The EFC is being replaced by the Student Aid Index (SAI).

What if my EFC is 0 on FAFSA?

According to the Federal Student Aid Office (FSA), students who qualify as having 0 EFC are eligible to receive all types of need-based aid to pay for their education as their families are unable to financially contribute.

Can I lower my EFC?

Lowering your income in the base year can make a big impact on EFC calculations. Adjusted gross income can be assessed up to 47% and assets are assessed at only 5.64%, so lowering a parent's income in the base year can be eight times more effective in lowering a family's EFC as compared to minimizing parental assets.

How do I get my EFC to 0?

The FAFSA assigns an auto-zero EFC to students who report $27,000 or less in income. Eligible applicants are not expected to contribute financially to their college expenses.

What happens if parents can't pay EFC?

If your parents or guardians refuse to pay for college, your best options may be to file the FAFSA as an independent. Independent filers are not required to include information about their parents' income or assets. As a result, your EFC will be very low and you will probably get a generous financial aid offer.