FAFSA Defined

Let’s learn a new financing term : Expected Family Contribution or EFC. 

EFC refers to the estimated financial contribution of an individual’s family to his or her college education.   Needless to say, depending on the financial status of the family, the EFC standing will vary.  In order to define a family’s EFC, a form called the Free Application for Federal Student Aid or (FAFSA) is utilized by the government.

Information on income, assets and household data are required to complete the form.  As soon as these data have been processed by the federal government, the FAFSA is then forwarded to the college / universities/ schools and financing institutions where the student applicant has requested a loan from.  This becomes an indicator of the student borrower’s financial need for assistance.

For further understanding of FAFSA, here are the answers to Frequently Asked Questions:

	Who are FAFSA eligible?
	What institutions utilize FAFSA and for what purpose?
	When is the deadline for FAFSA submission?
	How long does the processing of FAFSA take?

Who are FAFSA eligible?

Generally, all students are eligible for financial aid to help them pursue higher education. Basic requirements are…

	Applicant must be a US citizen or national or an eligible non-citizen
	Applicant must have a valid Social Security Number
	Applicant must have a high school diploma
	Applicant must not owe any refunds on federal grants
	Applicant must be in good standing in all existing student loans
	Applicant must not be found guilty of possession or sale of illegal drugs during the period of receipt of financial aid

What institutions utilize FAFSA and for what purpose?

FAFSA is used by most states, universities and colleges to assess eligibility and extent of financial aid to be granted in the form of institutional financial aids, including grants, educational loans and study-while-you-work programs

When is the deadline for FAFSA submission?

Deadline for submission varies per state and institution.  However, the sooner one can submit the FAFSA after January 1st, the better.

When is the deadline for FAFSA submission?

On-line submission of FAFSA allows for faster processing --- that is, approximately 3 days.  For FAFSAs sent through mail, an estimate of 3 weeks is required.