FAFSA is meant to help you get financial aid—but for many students, the Expected Family Contribution (EFC) just adds confusion. If your EFC feels too high, you’re not imagining it.
Despite the name, EFC isn’t what your family is expected to pay. It’s a calculation schools use to decide how much aid you won’t get. And for a lot of students, that number feels out of touch with reality.
Here’s what you’ll learn:
- What EFC actually means (and what it doesn’t)
- Why it might be higher than expected
- Legal ways to lower it
- And how the Student Aid Index (SAI) fits into all of this
Let’s clear it up—so you know what you’re dealing with before it impacts your aid package.
What Is Expected Family Contribution (EFC), Really?
EFC stands for Expected Family Contribution—but the name is misleading. It’s not what your family will actually pay for college. Instead, it’s a number calculated by the federal government based on the information you submit through the FAFSA form. Schools then use it to determine your financial aid eligibility.
Roughly 4.4 million FAFSA applicants—about 26%—are first-time college students, while the majority have applied before. That makes understanding your EFC especially important, whether you’re new to the process or returning. The number reflects how much your family is expected to contribute toward college costs, but it doesn’t always align with what they can realistically afford.
Here’s the key:
- The lower your EFC, the more need-based aid you might receive.
- A higher EFC means you’re expected to cover more of the cost, even if that number doesn’t reflect your real-life financial situation.
The formula behind it considers:
- Your family’s taxed and untaxed income
- Assets (excluding primary home value and some retirement accounts)
- Family size
- Number of students in college at the same time
The FAFSA questions about income, assets, and household size directly impact the EFC calculation.
Starting with the 2024–25 FAFSA, EFC is being replaced by the Student Aid Index (SAI). It’s a new name with slightly updated rules—but the general idea is the same: it’s a tool used to calculate aid, not a bill or price tag. Both the EFC and SAI are calculated based on the information provided in the FAFSA.
Why Is My EFC So High?
Seeing a high EFC on your Student Aid Report can be confusing—especially when it doesn’t seem to reflect your family’s financial strength or your family's ability to pay. But the EFC formula used by the federal government relies on data that doesn’t always tell the full story.
Here’s why your Expected Family Contribution might feel too high:
- Income appears higher on your tax return: The FAFSA pulls from your prior-prior year return, which may not reflect recent income changes. The calculation is based on the family's income and available income after certain allowances like taxes and living expenses. This can lower your student’s eligibility for federal financial aid, including Pell Grant eligibility.
- Student income is heavily weighted: If you’re a dependent student, your part-time income and student's contribution are heavily weighted in the formula, sometimes more than your parent income, reducing your student financial need and making you appear eligible for less financial aid.
- Assets are overreported or misunderstood: Some families include retirement accounts, their family farm, or small business values, which aren’t always required. The formula considers both student's assets and parental assets. Including these can inflate your net worth and reduce federal aid eligibility.
- One student in college: In past years, the formula adjusted for multiple children in school. Starting in the 2024–25 school year, the new SAI model removes this benefit—meaning most families could see higher calculated contributions.
- Student-owned 529 plans: If financial assets like 529 college savings are in the student’s name, they are counted as part of the student's assets and can increase the student's EFC, reducing institutional grants or work study program opportunities.
- No adjustment for high cost-of-living areas: The formula doesn’t consider household size, basic living expenses, or local cost variations. This can hurt families’ ability to accurately represent their financial limitations.
A lower EFC increases a student's eligibility for need-based aid, and many families may benefit from understanding how these factors interact in the aid calculation process.
Ultimately, the federal financial aid process uses a simplified calculation to estimate your family’s ability to contribute to the student’s college education—but it may not always align with your family's financial strength. If your number feels off, there are still legal ways to adjust it.
How to Lower Your EFC (Legally)
A high Expected Family Contribution (EFC) doesn’t mean you’re stuck with less aid. Lowering your EFC can help you qualify for more financial aid, including Pell Grants and work study programs, by increasing your eligibility for need-based assistance. With the right strategy, you can adjust how your financial information is reported so it more accurately reflects your family’s situation—and potentially qualify for more federal student aid. These strategies can help students access the most financial aid possible.
Avoid overreporting assets
Your FAFSA form doesn’t require every detail. You don’t need to include the value of your home, retirement accounts, or certain small businesses. Mistakenly listing them inflates your family income and can reduce your financial aid eligibility.
Transfer student-owned assets to parents
Student’s assets are weighted more heavily than parent income in the FAFSA application. Shifting money from a student’s account to a parent-owned 529 plan could lower the calculated student’s contribution—especially for a dependent student.
Reduce taxable income before filing
The FAFSA website pulls income data from your tax return two years prior to the academic year. Lowering your taxable income during that time—by contributing to retirement accounts or deferring income—can increase eligibility for programs like the Federal Pell Grant.
Request a professional judgment review
If your current income or expenses have changed since filing, reach out to your school’s financial aid office. They may be able to recalculate your financial aid award using updated financial information that better reflects your current situation.
Don’t report non-required assets
You don’t need to list personal property like cars, clothing, or home furnishings. These don’t factor into the EFC formula, and including them can misrepresent your family’s financial strength.
Accurately report household size and college attendance
The number of family members in your home—and how many are in college—can affect your aid. While recent FAFSA changes have removed some of the benefits for more students enrolled, household size still impacts your EFC dollar amount using the following formula.
Know your asset protection allowance
If you're a parent or independent student, part of your assets are protected based on age and family size. Understanding your asset protection allowance helps ensure your FAFSA doesn’t overstate what you can actually contribute toward college costs.
Is SAI the Same as EFC?
Illustration of a young woman at her desk with FAFSA paperwork, surrounded by floating icons representing finances, documents, and planning—visually depicting strategies to lower Expected Family Contribution (EFC) without any text.
Starting with the 2024–25 FAFSA form, you’ll notice something new: Student Aid Index (SAI) is replacing Expected Family Contribution (EFC). But what’s actually changing—and does it matter?
Here’s the short answer:
SAI works a lot like EFC, but with a few important updates. It’s still a number the federal student aid system uses to measure your financial aid eligibility, based on your family income, taxable income, student's assets, and other data from your FAFSA application.
What’s different about SAI?
- It can go below zero: Unlike EFC, which bottoms out at $0, the SAI can be negative. A lower number signals greater student financial need, which could qualify you for more aid like the Federal Pell Grant or college financial aid from schools.
- Terminology shift: The name change reflects that the number is not what your family is "expected" to pay—it’s just a starting point to calculate your financial aid award.
- Same data, same formula (mostly): The SAI calculation still uses the same basic financial information—including household size, student’s contribution, and assets—but the results are meant to more fairly assess a family’s situation, especially for low-income applicants.
While the update makes the system more transparent, the impact will feel familiar for most students. Whether you’re looking at EFC or SAI, it’s still just one part of how college costs are determined—and why understanding it matters.
Tips to Make It Work for You
Don’t Panic Over a High Number
A high Expected Family Contribution (EFC) or Student Aid Index (SAI) doesn’t automatically mean less support. Many colleges use their own formulas to offer institutional aid—which can be more generous than federal student aid alone.
Use EFC/SAI to Compare Real Costs
Your EFC or SAI helps estimate net cost, not just tuition. A school with higher sticker prices might offer better financial aid. Use that number to compare how much you’d actually pay across different schools.
Plan Ahead If You’re Still in High School
Decisions made during your junior or senior year—like how your family reports income or where assets are held—can influence your future FAFSA results. Early planning helps protect your financial aid eligibility down the line.
Look Beyond the FAFSA for Scholarships
FAFSA is just one piece. Tap into external scholarships, community grants, or niche opportunities based on interests, background, or career plans. These don’t always depend on your EFC or financial information.
Make the Numbers Work for You
The FAFSA’s Expected Family Contribution—or now, the Student Aid Index—is just one part of the financial aid puzzle. It doesn’t reflect your actual college bill or what your family must pay. What it does offer is a starting point to explore smarter financial aid decisions.
Don’t let a high number discourage you. Focus on your full financial picture: institutional aid, private scholarships, college savings strategies, and real net costs.
And remember—early research gives you more control. Whether you’re navigating the FAFSA for the first time or figuring out how to lower your EFC legally, understanding the process can unlock real opportunities.
If you're still unsure where to begin, start exploring scholarships for seniors and build a plan that works for your goals—not just the numbers on a form.
