Aid from most of the major programs discussed in the Guide is awarded on the basis of financial need (except for unsubsidized FFEL, Stafford, Direct Unsubsidized, and all PLUS loans .)
When you apply for federal student aid, the information you report is used in a formula, established by the U.S. Congress, that calculates your Expected Family Contribution (EFC) , an amount you and your family are expected to contribute toward your education. If your EFC is below a certain amount, you'll be eligible for a Federal Pell Grant , assuming you meet all other eligibility requirements.
There isn't a maximum EFC that defines eligibility for the other financial aid programs. Instead, your EFC is used in an equation to determine your financial need:
Cost of Attendance
- Expected Family Contribution (EFC)
---------------------------------------------------
= Financial Need
Your financial aid administrator (FAA) takes your cost of attendance (COA), and subtracts the amount you and your family are expected to contribute toward that cost. If there's anything left over, you're considered to have financial need. In determining your need for aid from the SFA programs, your FAA must first consider other aid you're expected to receive.
Your FAA can adjust the EFC formula's data elements or adjust your COA if he or she believes your family's financial circumstances warrant it based on the documentation you provide. However, the FAA does not have to make such an adjustment. See Special Circumstances for more information.
You can get a booklet called the "Expected Family Contribution (EFC) Formulas," which describes how the EFC formulas are calculated, by writing to:
Return to Financial Need Page 
Return to General Information Page 
Return to Financial Page