Glossary · Financial Aid
Expected Family Contribution
The former name for the Student Aid Index (SAI), used on FAFSA applications before the 2024-2025 cycle. The EFC represented the minimum amount a family was expected to contribute toward college costs based on income, assets, and household size.
What it means
The EFC was replaced by the Student Aid Index starting with the 2024-2025 FAFSA cycle as part of the FAFSA Simplification Act. The name change was intentional: "Expected Family Contribution" implied a bill, when it was really just a number used to calculate aid eligibility. The SAI serves the same function but can now go negative (down to -$1,500), which better identifies the neediest students.
If you see "EFC" in older scholarship materials, school websites that have not updated their language, or financial aid guides written before 2024, it means the same thing as SAI. The underlying formula changed somewhat in the transition, most notably in how it handles business assets, the number of children in college simultaneously, and the income protection allowance. But the concept is identical: a number that represents the family’s calculated ability to pay.
For practical purposes, if a scholarship application or school website still references EFC, assume they mean SAI and calculate accordingly using the current FAFSA formula.
Worked example
A family that calculated an EFC of $22,000 under the old formula might see an SAI of $19,500 under the new formula for the same income and assets because the FAFSA Simplification Act changed the income protection allowance and eliminated the sibling discount (previously, having two children in college simultaneously reduced the EFC). The $2,500 difference does not mean the family suddenly pays less. It means the formula shifted, and the school’s packaging will adjust accordingly.
Related terms
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