The EFC is the amount of money that you and your family are anticipated to be able to contribute to your education. This is determined based on the information you provide on the Free Application for Federal Student Assistance, or FAFSA. The EFC is calculated using the federal methodology formula which is approved by Congress. The formula takes several factors into consideration.
Student and parent/spouse income
Student and parent/spouse assets
Number of family members in college
The EFC is not the amount of money that you or your family must provide. Rather, you should think of the EFC as an index that schools use to determine your eligibility for federal student aid.