<p>The term EFC is misleading. Yes, it stands for expected family contribution, but the score is reall an index that tells you whether or not you qualify for a Pell Grant. </p>
<p>Most schools do not have to meet full need. THe few that do often use the Profile and thier own formulas for determining need. Those formulas, more often than not, come up with a family contribution that is higher than the FAFSA EFC.</p>
<p>If you go to a school requiring the FAFSA only, it is likely that there will a GAP between the amount of aid awarded and need. So, yes, it is likely that you will have unmet need. In the situations you described, a child at a 30K COA school with no scholarship may well have to come up with more than the 15K EFC. COA-EFC=Need. Need-aid=GAP. </p>
<p>Student loans are packaged as Fin Aid and go to meet need. EFC and GAP need to be met, often, with more loans. And here on the fin aid board you would be advised not to attend a school that expects you a cover a big gap with private or PLUS loans.</p>
<p>Finally, a 20k scholarship may very well result in more than a 5k savings in the scenario you describe. Without the scholarship, fin aid would very likely include Stafford loans. Not only would your “save” 5K from your expected contribution but the amount of your Staffords ($5500 for freshmen). </p>
<p>More confused now? Probably. Once you settle on a school and know your bills, it’s a lot easier to get your head wrapped around fin aid. Right now, while considering multiple offers from places that all package money differently, it is confusing.</p>