The EFC (Expected Family Contribution) on your SAR (Student Aid Report) is a measure of your family’s ability to pay for college. The financial aid office establishes a Cost of Attendance (COA). The COA includes tuition, fees, estimated living expenses, and books and supplies. Financial need is an official term for how much need-based financial aid you’re eligible for. Your financial need is calculated by subtracting the EFC from COA.
To put it simply, the equation is used is:
COA – EFC = Financial Need
In order for you to receive need-based aid, your Cost of Attendance must be greater than your Expected Family Contribution.