Exepected Family Contribution Rules

• The Expected Family Contribution is the amount of money the federal government anticipates you'll be able to put towards your college tuition and related costs. The federal government determines your EFC through the financial information you submit on your Federal Application for Federal Student Aid. The government takes into account your federal tax return for the previous year, the income and assets of you parents if you're a dependent child as well as your personal financial assets, including money held in a savings account.
  
  

Affects of Financial Assets

• The affect your assets, including money held in a savings account, can have on your tuition is relative to how much money you have saved up compared to the total yearly cost of your college education. Having $100 in a savings account will likely not have a large effect on your EFC, while a savings account holding $10,000 may have a larger impact. Visiting the FinAid website and plugging your financial information into the website's Expected Family Contribution Calculator can give you a clearer picture of how much your savings will impact your financial aid eligibility.
  
  

Tuition and Family Factors

• The cost of attending your chosen university or college also plays into how the government determines your EFC for federal student aid. The higher your tuition costs are in comparison to your total income and assets, the lower your EFC. The size of your family also plays into your EFC if you have children of your own or are a dependent child. The larger your family, the lower your EFC will be because the federal government factors in that you or your parents have to support more dependents and will have less available cash to pay for college.
  
  

University Financial Aid

• Every university or college uses different method of determining your ability to pay tuition and related costs, according to FinAid's website. The federal government may take your college or university's assessment of your finances into consideration when determining how much federal aid you may receive. The government will also ask your university for your enrollment status, and will offer differing amounts of financial aid if you're a full-time student or a part-time student. You must carry at least six credits a semester to remain eligible for federal student aid.