The EFC Quick Reference Table works like this. First, you need to know the parent’s adjusted gross income (AGI) which is typically the last line on the first page of your tax return. To keep things simple, if you don’t know your AGI simply use the amount that you earn from working each year.
Step 1 – Locate your income in the AGI column.
Step 2 – Find the column at the top of the table that corresponds to the number of dependent children that you have and follow that column down to the row that corresponds with your income (AGI). The number in the intersecting box is your estimated EFC based on parental income only.
For example, if your income is $70,000 and you have two dependent children, then your EFC is $8,511 and falls into the green area. If your income is $350,000 and you have one dependent child, then your EFC is $99,394 and is in the red area.
2010 – 2011 EFC Quick Reference Table
(for married taxpayers filing jointly) |
| Adjusted Gross Income |
Expected Family Contribution
based on number of dependent children |
| (AGI) |
One |
Two |
Three |
Four |
| $35,000 |
$1,617 |
$848 |
$0 |
$0 |
| $40,000 |
$2,512 |
$1,775 |
$876 |
$0 |
| $45,000 |
$3,210 |
$2,656 |
$1,891 |
$791 |
| $50,000 |
$3,624 |
$2,891 |
$2,288 |
$1,369 |
| $55,000 |
$5,310 |
$4,380 |
$3,605 |
$2,823 |
| $60,000 |
$6,634 |
$5,533 |
$4,648 |
$3,029 |
| $65,000 |
$8,203 |
$6,896 |
$5,847 |
$4,769 |
| $70,000 |
$10,020 |
$8,511 |
$7,266 |
$5,988 |
| $75,000 |
$11,838 |
$10,328 |
$8,945 |
$7,432 |
| $80,000 |
$13,656 |
$12,146 |
$10,763 |
$9,141 |
| $85,000 |
$15,474 |
$13,964 |
$12,581 |
$10,958 |
| $90,000 |
$17,291 |
$15,782 |
$14,398 |
$12,776 |
| $95,000 |
$18,886 |
$17,548 |
$16,216 |
$14,594 |
| $100,000 |
$20,468 |
$19,130 |
$17,919 |
$16,411 |
| $105,000 |
$21,443 |
$20,105 |
$18,894 |
$17,443 |
| $110,000 |
$23,172 |
$21,834 |
$20,622 |
$19,171 |
| $115,000 |
$24,900 |
$23,445 |
$22,233 |
$20,782 |
| $120,000 |
$26,629 |
$25,056 |
$23,844 |
$22,393 |
| $125,000 |
$28,357 |
$26,667 |
$25,455 |
$24,004 |
| $130,000 |
$30,086 |
$28,277 |
$27,066 |
$25,615 |
| $135,000 |
$31,814 |
$30,006 |
$28,677 |
$27,226 |
| $140,000 |
$33,542 |
$31,734 |
$30,288 |
$28,837 |
| $145,000 |
$35,271 |
$33,463 |
$31,899 |
$30,448 |
| $150,000 |
$36,999 |
$35,191 |
$33,510 |
$32,059 |
| $155,000 |
$38,728 |
$36,920 |
$35,238 |
$33,670 |
| $160,000 |
$40,448 |
$38,648 |
$36,966 |
$35,280 |
| $165,000 |
$42,106 |
$40,349 |
$38,695 |
$36,831 |
| $170,000 |
$43,764 |
$42,007 |
$40,377 |
$38,266 |
| $175,000 |
$45,421 |
$43,665 |
$42,035 |
$39,818 |
| $180,000 |
$47,079 |
$45,323 |
$43,693 |
$41,370 |
| $185,000 |
$48,737 |
$46,980 |
$45,272 |
$42,922 |
| $190,000 |
$50,395 |
$48,638 |
$46,825 |
$44,475 |
| $195,000 |
$52,053 |
$50,296 |
$48,377 |
$46,027 |
| $200,000 |
$53,711 |
$51,954 |
$49,929 |
$47,579 |
| $205,000 |
$55,369 |
$53,591 |
$51,481 |
$49,131 |
| $210,000 |
$57,027 |
$55,144 |
$53,033 |
$50,683 |
| $215,000 |
$58,685 |
$56,696 |
$54,586 |
$52,236 |
| $220,000 |
$60,343 |
$58,248 |
$56,138 |
$53,788 |
| $225,000 |
$62,001 |
$59,800 |
$57,690 |
$55,340 |
| $250,000 |
$69,525 |
$67,288 |
$65,178 |
$62,828 |
| $275,000 |
$76,992 |
$74,755 |
$72,645 |
$70,295 |
| $300,000 |
$84,459 |
$82,222 |
$80,112 |
$77,762 |
| $325,000 |
$91,927 |
$89,869 |
$87,579 |
$85,229 |
| $350,000 |
$99,394 |
$97,156 |
$95,046 |
$92,696 |
| $375,000 |
$99,999 |
$99,999 |
$99,999 |
$99,999 |
| $400,000 |
$99,999 |
$99,999 |
$99,999 |
$99,999 |
| $425,000 |
$99,999 |
$99,999 |
$99,999 |
$99,999 |
| $450,000 |
$99,999 |
$99,999 |
$99,999 |
$99,999 |
| $475,000 |
$99,999 |
$99,999 |
$99,999 |
$99,999 |
| $500,000 |
$99,999 |
$99,999 |
$99,999 |
$99,999 |
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Eligibility for Need-Based Financial Aid
Eligibility for need-based financial aid is based on two things: 1) the cost of attendance (COA) of the college, tech school or university that a child wants to attend and 2) the expected family contribution toward that cost.
Cost of Attendance
Since you need to know the cost of attendance of a college in order to calculate need-based financial aid eligibility, I used a 2010-2011 projected national average cost of: a 2 year public college, a 4 year public college and a 4 year private college.
| National Average College Costs |
| $15,000 |
The national average cost of a 2 year public college, commuting students not living at home |
| $19,000 |
The national average cost of a 4 year public college with in-state tuition |
| $40,000 |
The national average cost of a 4 year private college |
| Projected for the 2010-2011 academic year. |
Expected Family Contribution
Expected Family Contribution (EFC) is the minimum amount that a family is expected to contribute toward the cost of attendance (COA). Calculating expected family contribution is necessary in determining a student’s need for financial aid. Essentially, a student’s EFC is subtracted from the cost of attendance of a college and if the EFC is less than the COA, then the student qualifies for need-based aid because he has a demonstrated need for it. When a student’s EFC is greater than the COA of a school, he won’t qualify for need-based financial aid. All of the EFCs are color coded to give you an idea of whether the student will qualify for need-based financial aid at one of three types of colleges. Use the color codes below to estimate need-based aid eligibility.
| The student would qualify for need-based financial aid at: |
| Blue and Bold |
ELIGIBLE at 2 year public, 4 year public, 4 year private colleges, and for Federal PELL Grants* |
| Green |
ELIGIBLE at 2 year public, 4 year public, and 4 year private colleges |
| Yellow |
ELIGIBLE at 4 year public and 4 year private colleges |
| Orange |
ELIGIBLE at 4 year private college |
| * Note on the PELL Grant: The 2010-2011 figures will be available in early 2010. We will update this post, as soon as we have the figures. |
| The student would NOT qualify for need-based financial aid at: |
| Red |
NOT ELIGIBLE at 2 year public, 4 year public, or 4 year private colleges |
Let’s Put All of This Into Perspective
You Qualify
Using the example from above, if your income is $70,000 and you have two dependent children, your EFC is $8,511 and is green, which means that based on this estimated EFC using your income alone (your actual EFC may be higher), your child should qualify for need-based financial aid at all three types of colleges. As a result, your child is eligible to receive grants, scholarships, work-study and student loans as part of the child’s financial aid package. Eligibility does not mean certainty however. You will have to wait to see what form of aid the child gets and how much it is worth.
You Don’t Qualify
On the other hand, if your income is $350,000 and you have one dependent child, then your EFC is $99,394 and is red, which means that your child won’t likely qualify for need-based aid at any of the three types of schools used. But, that doesn’t mean that you have to pay $99,394 because the “sticker prices” at the three types of schools is less than that. You will never pay more than the cost of attendance.
Keep in mind too that I used national average costs for these three types of schools and that the cost of attendance of a specific college will be different than the national average. Several Ivy League colleges are more than $50,000 annually, but the projecte 2010-2011 national average cost for 4 year private colleges is $40,000. So the national average costs give you a broad sense of aid eligibility, and if your child doesn’t qualify for need-based aid, he might still receive some merit-based aid.
Financial aid (grants, scholarships, loans and work-study) is awarded on the basis of need and/or merit. Need-based aid is based on a family’s demonstrated need for aid through the needs analysis formula: COA – EFC = Need. Merit-based aid is awarded regardless of the student’s ability to pay and is based on the student’s talent (academically, athletically, etc). I need simple ways to keep all of this straight, so I just remember that need-based aid is based on your ability to PAY and merit-based aid is based on your ability to PLAY.
The EFC Formulae
The formula for determining EFC is not simple and is quite involved. The EFC Quick Reference Table is a way to quickly estimate need-based aid eligibility. Parents income is by far the biggest determinant of a student’s expected contribution, although currently parent’s assets and the student’s income and assets are also used in the official calculation.
The EFC formula is updated for inflation each year and is administered by the Department of Education based on the guidelines of the Higher Education Act. This table has already been updated for 2010-2011 based on the June 2009 update published by the Department of Education. The Higher Education Act is reauthorized on a regular basis by Congress. Thus the formula is often called the Congressional or Federal Methodology and is required to be used if a school wants to participate in Title IV financial aid (Pell grants, Stafford loans, etc.).
To apply for federal financial aid and get your EFC, students and parents must complete the Free Application for Federal Student Aid (FAFSA) www.fafsa.ed.gov. There is a copy of the 2009-2010 FAFSA in Stratagee’s College section. In addition, Stratagee’s College Section also contains several other useful resources published by the Department of Education that simplify and clarify the process of applying for financial aid
About 300 private colleges often use an additional formula called the Institutional Methodology to calculate a family’s EFC when considering the student for the school’s own aid money. In addition to the FAFSA, these colleges usually require a separate form called the Profile. Information on the Profile is available through the College Board at www.collegeboard.com. In general, the primary differences between the two formulae are: 1) The Institutional Methodology (IM) counts more types of assets from more family members than does the Federal Methodology (FM) which means that families with substantial assets could have a higher EFC under the IM formula and 2) under the IM formula, families that have little or no assets could have a lower EFC than under the FM formula.