Do You Know Your EFC(s)

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The Estimated Family Contribution (EFC) is calculated by one of two formulas. The Institutional Methodology (IM) or The Consensus Methodology (CM). Each formula have their differences in what and how they assess certain information pertaining to income, assets, and other factors. Therefore, many times a family will have a different outcome in what they will receive in their initial financial aid offer from college to college that requires the CSS Profile form. For example, one of the questions on Profile will ask for the value of the parent’s total value of their 401K, 403Bs, SEPs, and IRAs. Many colleges claim that they do not assess retirement plans. Not true. Some do, some don’t. FYI, parents do not have to disclose the value of their retirement plans. Most parents don’t know this. In addition, many colleges will have their own addendum questions on the Profile which will affect the outcome of the student’s financial aid offer. Lastly, believe it or not, some colleges will not disclose their EFC. If you would more information on this topic and others, please contact our office.

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