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The EFC Formula, 2020-2021 - ed

The efc formula , 2020 2021 1 THE efc formula , 2020 2021 What is the EFC?The Expected Family Contribution (EFC) is a number that determines students eligibility for certain types of federal student aid. This number is calculated with the EFC formulas, which use the information that students provide on the Free Application for Federal Student Aid (FAFSA ). Financial aid administrators (FAAs) subtract the EFC from students cost of attendance to determine their need for the following federal student financial assistance offered by the Department of Education (the Department): Federal Pell Grants, Subsidized Loans through the William D. Ford Federal Direct Loan Program, Federal Supplemental Educational Opportunity Grants (FSEOG), and Federal Work-Study (FWS).

• For tax filers, use the parents’ adjusted gross income from the tax return to determine if income is $49,999 or less. • For non-tax filers, use the income shown on the 2018 W-2 forms of both parents (plus any other earnings from work not included on the W-2s) to determine if income is $49,999 or less. For the 2020–2021 Award Year, an

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