Does my EFC take into account my Pell Grant?

Paying for College
1

<p>My mom just finished the FAFSA and it states that our EFC is $2,333, while our Pell Grant estimate is $3,200. And what exactly is a Stafford Loan? My mom didn’t go to college and we have no idea what any of these things mean.</p>

2

<p>The pell grant is a federal need based grant that is based on your EFC. If you are eligible for it, it will be included in your FA award from your school.</p>

<p>The Stafford loan is a federal student loan (meaning, unlike a grant, it has to be repaid). The maximum for a dependent student is $5500. All students who file FAFSA are eligible for it.</p>

3

<p>Pell Grant money is a federal grant that you do not pay back. EFC is the estimate of your family’s ability to pay according to the federal formula (which has very little to do with reality in most cases). You and your family are expected to pay what you can - usually that is EFC plus whatever your financial aid package doesn’t cover. Your EFC is used by the university to determine how to fairly award aid to you. Your Pell Grant money is not used to cover your EFC. Stafford loans are federal loans for education - they come in two forms. Subsidized loans have the interest paid for you while you are in school, unsubsidized loans accrue interest while you are in school.</p>

<p>Many others have explained this better than I but that gives you an idea. Finaid.org and collegeboard have explanations on this as well as the FAFSA website.</p>

4

<p>As the other posters have said, your EFC does not “take into account” your Pell grant… if you mean by that, will your Pell grant cover your EFC? No.</p>

<p>Your Pell grant will go directly to your college to help pay your tuition and fees. The EFC is just a number the FAFSA generates – it unfortunately often has very little to do with the amount of money you and your family actually have to come up with.</p>

<p>But the Pell and the loans are considered to be financial aid beyond your EFC… not including it. Think of the EFC as the minimum amount you’ll have to pay in addition to grants, loans, workstudy.</p>

5

<p>Thank you everyone!</p>