EFC - Expected Family Contribution

There are two formulas used when classifying Federal Methodology Models. What are they called?

1) Regular Formula 2) Simplified Formual

EFC Underlying Principles for need analysis (1 of 7):

1. Parents and students have the primary responsibility for meeting the education costs

When using the Regular Formula, what is the base year income for 2013-14?

2012

When using the Regular Formula, what is the base year income for 2014-15?

2013

How does the Federal Methodology Classify students?

According to one of three models: Model A: DEPENDENT Student; Model B: INDEPENDENT Student w/out dependents other than a spouse; Model C: INDEPENDENT Student with dependents other than a spouse.

What does the Simplified Formula exclude from EFC Calculations?

Assets

The Regular Formula gives EQUAL DISTRIBUTION of resources other than parents of which: dependent or independent students?

Dependent

Round resulting amounts to nearest WHOLE number: .001 to .499 rounds...

Down.

EFC Underlying Principles for need analysis (5 of 7):

Families in different circumstances should be expected to make contributions appropriate to their financial resources.

What is the formula used for determining the EFC?

Federal Methodology

The EFC must be adjusted for enrollment period other than 9 months for all Title IV programs other than which Grant?

Federal Pell Grant

What is an Automatic Zero EFC?

If certain criteria are met, no calculation is performed and the EFC is automatically set to zero.

Regular Formula Allowances protect portions of income and assets. Give an example.

If mom and dad are supporting three other kids in college already.

The qualifying criteria for the Simplified Formula is similar to Automatic Zero EFC Criteria, but what is higher?

Income Cap

Alternate EFCs are listed on what two reports?

Institutional Student Information Record (ISIR) and Student Aid Report (SAR)

The Automatic Zero EFC is limited to what?

Model A: Dependent Students Model C: Independent Students with dependents other than a spouse.

The EFC is calculated for a ____ month enrollment period:

Nine.

The EFC is used to determine need for which FOUR kinds of aid?

Pell Grants FSEOG Federal Work Study Subsidized Loans

What Formula do most people fall under?

Regular Formula

What is another name for the Simplified Formula used in Federal Methodology?

Simplified Needs Test

What is the EFC?

The EFC is a number that is used to determine a student's eligibility for federal student aid.

EFC Underlying Principles for need analysis (3 of 7):

The assessment of a family's ability to pay should be independent of the amount of aid available, and the cost of attending the school

EFC Underlying Principles for need analysis (2 of 7):

The distribution of aid should be based on the family's ability to pay...NOT their willingness to pay.

What is FEDERAL METHODOLOGY?

The method used for assessing ability to pay by: 1) Measuring family's financial strength; 2) Assessing a portion of family's financial resources as a contribution toward education costs.

Underlying Principles for need analysis (7 of 7):

The need analysis formula should provide a "snapshot" of the family's financial circumstance at the time of the application.

EFC Underlying Principles for need analysis (6 of 7):

The need analysis results are a benchmark. As such the final assessment of the family's ability to contribute to the education cost is subject to the professional judgment of the financial aid administrator.

What is Need Analysis

The system used to allocate financial aid resoures

EFC Underlying Principles for need analysis (4 of 7):

There should be equity across the board in the distribution. (Families of similar circumstances w/similar resources should be expected to make similar contributions.

.500 to .999 rounds...

Up.

The Regular Formula requires student to attend how much?

half time

When Rounding, carry all calculations how many decimal places?

three.