Figuring Out Your Expected Family Contribution (EFC)

Your Expected Family Contribution – the amount of money you’re supposed to be able to afford for college – usually is shortened to EFC.  We are going to teach you how to calculate your EFC, and therefore figure out approximately how much aid a school may provide.

Note: This is just to give you an idea of the numbers you should be considering, and in no way guarantees a certain amount of aid.

Dependent or Independent?

If you’re dependent, your parent’s income and assets are used in our equation. If you’re independent, the formula will only take into consideration you and your spouse’s financials.

Cost of Attendance?

The cost of a college for financial aid purposes is more than just its tuition. Cost includes every dollar you reasonable can expect to spend as a student. Start with the tuition and fees. If you plan to live on campus, add room and board. Then add a reasonable amount for books, transportation to and from campus, and the cost of your daily living expenses, such as food, laundry, utilities, etc.

Worksheet: Calculating My EFC

1. Income
a. Parents’ adjusted gross income $_________
b. Untaxed income +_________
Total Income ___________ (A)
2. Allowances
a. Federal income tax $_________
b. Social Security taxes +_________
c. State taxes (1%-10%) +_________
d. Employment allowance (~$2,500) +_________
e. Income Protected (Table #1) +_________
f. Total Allowances ___________ (B)
3. Available Income (Line A – Line B) ___________ (C)
4. Assets
a. Cash in bank accounts $_________
b. Investment Equity (excluding home) +_________
c. Business net worth (Table #2) +_________
d. Asset Protection (Table #3) - _________
e. Net Worth ___________ (D)
5. Available Assets (12% of D) ___________ (E)
6. Adjusted Available Income (C +E) ___________ (F)

7. Parents’ Total Contribution (Table #4)

 ___________ (1A)
Student’s Contribution
8. Income
a. Student’s adjusted gross income $_________
b. Untaxed income +_________
c. Total Income ___________ (G)
9. Allowances $_________
a. Federal Income Tax $_________
b. Social Security Tax +_________
c. State Taxes +_________
d. Income Protected $1,750
e. Total Allowances ___________ (H)
10. Available Income (Line G – Line H) ___________ (I)
11. Contribution from income (50% of I) ___________ (J)
12. Assets (cash in banks, investments) ___________ (K)
13. Contributions from assets (35% of K) ___________ (L)

14. Student’s Contribution (J + L)

 ___________ (1B)

Expected Family Contribution (1A + 1B)

 _______________





Table #1: Income Protection Allowance

Family Members in College

Family Size

1

2

3

4

5

2

$10,840

$8,980

3

$13,490

$11,650

$9,800

4

$16,670

$14,810

$12,970

$11,110

5

$19,660

$17,810

$15,970

$14,110

$12,270

6

$23,000

$21,250

$19,300

$17,450

$15,60


Table #2: Business Adjusted Net Worth

Net Worth

Adjusted Net Worth

$1 to $75,000

40% of net worth

$75,001 to $250,000

$30,000 + 50$ of net worth over $75,000

$250,001 to $385,000

$107,500 + 60% of net worth over $250,000

Over $385,000

$200,500 + 100% of net worth over $385,000


Table #3: Asset Protection Allowance

Older Parent’s Age

Married

Single

25 or younger

0

0

26

$2,100

$1,500

27

$4,300

$3,100

28

$6,400

$4,600

29

$8,600

$6,200

30

$10,700

$7,700

31

$12,900

$9,200

32

$16,000

$10,800

33

$17,200

$12,300

34

$19,300

$13,900

35

$21,500

$15,400

36

$23,600

$16,900

37

$25,800

$18,500

38

$27,900

$20,000

39

$30,100

$21,600

40

$32,200

$23,100

41

$33,000

$23,500

42

$33,900

$24,100

43

$34,700

$24,500

44

$35,400

$25,100

45

$36,300

$25,600

46

$37,200

$26,200

47

$38,500

$26,900

48

$39,400

$27,500

49

$40,500

$28,000

50

$41,500

$28,700

51

$42,800

$29,400

52

$43,900

$30,300

53

$45,300

$31,000

54

$46,700

$31,800

55

$47,900

$32,500

56

$49,400

$33,500

57

$50,900

$34,300

58

$52,500

$35,300

59

$54,400

$36,300

60

$56,000

$37,200

61

$58,100

$38,200

62

$59,800

$39,300

63

$61,900

$40,400

64

$64,100

$41,800

65 or older

$66,300

$42,900


Table #4: Parents’ Contribution

Adjusted Available Income (F)

Parents’ Contribution

$3,408 or less

$750

$3,409 to $9,700

22% of AAI

$9,701 to $12,200

$2,134 + 25% of AAI over $9,700

$12,201 to $14,600

$2,759 + 29% of AAI over $12,200

$14,601 to $17,100

$3,455 + 34% of AAI over $14,600

$17,101 to $19,600

$4,305 + 40% of AAI over $17,100

$19,601 or more

$5,305 + 47% of AAI over $19,600

Note: This number is the Total Parents’ Contribution. If multiple children are in college, divide Parent’s Contribution by number of kids in college to reach Parents’ Contribution for each child.