Financial Aid & EFC Calculator 2019-2020
Estimate your Expected Family Contribution (EFC) for the 2019-2020 academic year
Your Estimated Financial Aid Results
Comprehensive Guide to the 2019-2020 Financial Aid & Expected Family Contribution (EFC) Calculator
The Expected Family Contribution (EFC) is a critical number in determining your eligibility for federal student aid. For the 2019-2020 academic year, understanding how your EFC is calculated can help you better plan for college expenses and maximize your financial aid package.
What is the Expected Family Contribution (EFC)?
The 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 Free Application for Federal Student Aid (FAFSA) is used to calculate your EFC.
Key points about EFC:
- It’s not the amount of money your family will have to pay for college
- It’s not the amount of federal student aid you will receive
- It’s an index used by schools to calculate how much financial aid you’re eligible to receive
- Your EFC is subtracted from your cost of attendance (COA) to determine your financial need
How is EFC Calculated for 2019-2020?
The EFC formula for 2019-2020 considers several factors:
- Parent Income and Assets: For dependent students, this includes taxed and untaxed income, as well as assets like savings and investments (excluding retirement accounts and home equity).
- Student Income and Assets: Both taxed and untaxed income, plus any assets in the student’s name.
- Household Information: Includes family size and the number of family members attending college during the award year.
- Benefits Received: Such as unemployment or Social Security benefits.
The formula applies different assessment rates to parent and student assets (typically 5.64% for parent assets and 20% for student assets for 2019-2020).
Key Changes in the 2019-2020 EFC Formula
While the core EFC formula remains consistent, there are annual adjustments to income protection allowances and other factors:
- Income protection allowance increased slightly to account for inflation
- Asset protection allowance adjusted based on parental age
- State and other tax allowances updated for 2019 tax year
- Employment expense allowance maintained at 35% of earned income
EFC Ranges and What They Mean
Your EFC number can range from 0 to 999,999. Here’s what different ranges typically indicate:
| EFC Range | Typical Interpretation | Likely Financial Aid |
|---|---|---|
| 0 | Highest financial need | Maximum Pell Grant ($6,195 for 2019-2020), possible full need met by school |
| 1-5,576 | Significant financial need | Partial to full Pell Grant, substantial need-based aid |
| 5,577-10,000 | Moderate financial need | Possible partial Pell Grant, some need-based aid |
| 10,001-20,000 | Some financial need | Limited need-based aid, primarily loans |
| 20,001+ | Little to no demonstrated need | Primarily unsubsidized loans and possibly merit aid |
How Schools Use Your EFC
Colleges use your EFC to determine your financial need by subtracting it from their Cost of Attendance (COA):
Financial Need = COA – EFC
Schools then create a financial aid package to meet some or all of this need, which may include:
- Grants and scholarships (gift aid that doesn’t need to be repaid)
- Work-study programs (earned aid through campus employment)
- Student loans (borrowed money that must be repaid with interest)
Important: Schools aren’t required to meet 100% of your demonstrated need. Many schools practice “gapping” where they don’t fully meet a student’s need.
Strategies to Potentially Lower Your EFC
While you should never make financial decisions solely for aid purposes, these legitimate strategies might help:
- Maximize retirement contributions: Retirement accounts aren’t counted in EFC calculations.
- Pay down consumer debt: Credit card balances and other consumer debt aren’t considered, but cash assets are.
- Time asset shifts carefully: The FAFSA looks at assets as of the date you file. For 2019-2020, this would be after October 1, 2018.
- Consider 529 plan ownership: For dependent students, parent-owned 529 plans have minimal impact on EFC (typically <6% of value).
- Report accurately: Never misreport information, but ensure you’re claiming all allowable deductions and exclusions.
Common EFC Calculation Mistakes to Avoid
Avoid these errors that could inflate your EFC:
- Reporting retirement accounts: 401(k)s, IRAs, and pension plans shouldn’t be included as assets.
- Including home equity: The net worth of your primary home isn’t considered in the federal EFC formula (though some schools may consider it for institutional aid).
- Forgetting to count all household members: Include all dependents, even if they’re not in college.
- Misreporting untaxed income: Child support, veterans benefits, and other untaxed income must be reported.
- Not updating information: If your financial situation changes significantly after filing, contact the financial aid office.
2019-2020 Pell Grant Eligibility
The maximum Federal Pell Grant for 2019-2020 was $6,195. Eligibility is primarily based on EFC:
| EFC Range | Maximum Pell Grant Award | Percentage of Maximum Award |
|---|---|---|
| 0 | $6,195 | 100% |
| 1-500 | $6,195 | 100% |
| 501-1,000 | $5,600-$6,195 | 90%-100% |
| 1,001-2,000 | $4,000-$5,599 | 65%-89% |
| 2,001-3,000 | $2,400-$3,999 | 39%-64% |
| 3,001-4,000 | $1,000-$2,399 | 16%-38% |
| 4,001-5,576 | $650-$999 | 10%-15% |
| 5,577+ | $0 | 0% |
Federal Student Loan Limits for 2019-2020
Your EFC also affects your eligibility for federal student loans. For 2019-2020, the limits were:
- Dependent Undergraduates:
- First year: $5,500 ($3,500 subsidized maximum)
- Second year: $6,500 ($4,500 subsidized maximum)
- Third year and beyond: $7,500 ($5,500 subsidized maximum)
- Independent Undergraduates (and dependent students whose parents can’t get PLUS loans):
- First year: $9,500 ($3,500 subsidized maximum)
- Second year: $10,500 ($4,500 subsidized maximum)
- Third year and beyond: $12,500 ($5,500 subsidized maximum)
- Graduate/Professional Students: $20,500 (all unsubsidized)
Note: Subsidized loans don’t accrue interest while you’re in school at least half-time. Unsubsidized loans begin accruing interest immediately.
State-Specific Financial Aid Programs
Many states offer their own financial aid programs with different eligibility criteria. For example:
- California: Cal Grant program with awards up to $12,570 for 2019-2020
- New York: Tuition Assistance Program (TAP) with awards up to $5,165
- Texas: TEXAS Grant with awards up to $5,234
- Florida: Bright Futures Scholarship with awards covering 75%-100% of tuition
Check with your state’s higher education agency for specific programs and deadlines, which may differ from the federal FAFSA deadline.
Appealing Your Financial Aid Award
If your financial situation changes after submitting the FAFSA or if you believe your EFC doesn’t accurately reflect your ability to pay, you can appeal:
- Contact the financial aid office: Explain your special circumstances (job loss, medical expenses, etc.).
- Submit documentation: Provide evidence of your changed circumstances (layoff notice, medical bills, etc.).
- Write a formal appeal letter: Clearly explain why you’re requesting more aid.
- Follow up: Check on the status of your appeal and provide any additional requested information.
Successful appeals can sometimes result in additional grants or scholarships rather than just more loans.
Important Resources and Deadlines
For the 2019-2020 academic year, these were key resources and deadlines:
- FAFSA Opening Date: October 1, 2018
- Federal Deadline: June 30, 2020 (but apply much earlier)
- State Deadlines: Vary by state (many in early 2019)
- School Deadlines: Often earlier than federal deadline – check with each school
Helpful official resources:
- Federal Student Aid Information Center
- FAFSA Application Website
- Information for Financial Aid Professionals (IFAP)
Understanding Your Student Aid Report (SAR)
After submitting your FAFSA, you’ll receive a Student Aid Report (SAR) which includes:
- Your EFC
- A summary of the information you provided on your FAFSA
- Any potential issues or corrections needed
- Your Data Release Number (DRN) if you want to allow schools to change certain information
Review your SAR carefully for accuracy. If you find errors, you can make corrections online at FAFSA.gov.
Comparing Financial Aid Awards
When you receive financial aid offers from different schools, compare them carefully:
- Focus on net price: Subtract grants/scholarships from the total cost to determine what you’ll actually pay.
- Compare loan amounts: More loans mean more debt after graduation.
- Look at renewal criteria: Some scholarships require maintaining a certain GPA.
- Consider work-study: This is earned aid that requires you to work during the school year.
- Check for front-loading: Some schools offer more aid in the first year to attract students.
Use the College Board’s Compare Awards tool to help evaluate different offers.
Planning for Future Years
Remember that you need to complete the FAFSA each year you’re in school. Your EFC may change based on:
- Changes in family income or assets
- Changes in household size
- Changes in the number of family members in college
- Updates to the EFC formula
Start planning early for each academic year to maximize your aid eligibility.
Alternative Funding Sources
If your EFC is high and you need additional funding, consider:
- Private scholarships: Use search engines like Fastweb or Scholarships.com
- Tuition payment plans: Many schools offer monthly payment options
- Employer tuition assistance: Some companies help pay for employee education
- Military benefits: If you or a family member served in the military
- Community college: Starting at a two-year school can significantly reduce costs
Be cautious with private student loans, which typically have higher interest rates and fewer repayment options than federal loans.
Final Tips for Maximizing Financial Aid
To get the most financial aid possible:
- File the FAFSA early: Some aid is awarded on a first-come, first-served basis.
- Apply to multiple schools: Compare financial aid offers from different institutions.
- Negotiate with schools: If you receive a better offer from one school, ask others if they can match it.
- Look for school-specific aid: Many colleges have their own scholarships and grants.
- Consider net price calculators: Most schools have these on their websites to estimate costs before applying.
- Stay in touch with financial aid offices: They can provide valuable guidance throughout the process.
Remember that the financial aid process can be complex, but understanding how your EFC is calculated and how schools use it can help you make more informed decisions about paying for college.