The Expected Family Contribution (EFC) is an index of a familys ability to pay for college and is used to determine how much financial aid a student is eligible for. It is calculated using information provided on the Free Application for Federal Student Aid (FAFSA), the CSS Profile, or other financial aid applications. The EFC formula takes into account factors such as income, assets, the number of persons in the household, and the number of those attending college for the award year. Its important to note that the EFC is not the exact amount that a family will need to pay for college, but rather a baseline that can be used to work out financial need. Colleges use a students EFC to determine their financial need, which is calculated by subtracting the EFC from the institutions cost of attendance for one year, including tuition and other expenses. The lower a familys EFC number, the more likely a student will receive financial aid. However, its important to realize that the significance of an EFC can be more complicated, and families should understand that their EFC will mean something different at each individual institution.