skip to Main Content

Why It Is Always Important to Reduce Your EFC

How important is it for you to know how to reduce EFC for college? EFC stands for Expected Family Contribution. What if you already know that you or your student will be receiving a merit scholarship that will far exceed any need-based financial aid? Though it is possible that a high merit scholarship may eliminate your eligibility for any need-based financial aid, it is still very important to keep your Expected Family Contribution (EFC) as low as possible.

« Learn more about paying for college

A low EFC can be a way of protecting yourself from these and other uncertainties. Here’s how to reduce EFC for college:

1. Your merit scholarship may not be renewed each year.

Each year, students lose their merit scholarships. This happens for a variety of reasons. Merit scholarships require specific grade point averages be maintained. Athletic or art scholarships may also be performance based.

In addition, not all merit scholarships are meant to be given each year. Make sure you know all the details regarding your merit scholarships.

If you or your student loses your merit scholarship, a low EFC becomes incredibly important.

2. With more than one student in school at the same time. need-based financial aid often exceeds the scholarship amount. 

Here’s one strategy for how to reduce EFC for college need-based financial aid. EFC can be reduced as much as 50% when there is more than one student in school at the same time. Missing this additional need-based aid can be costly for families.

3. There is no merit aid offered at most top-tier universities.

If you or your student enters a top-tier university that uses the Institutional Methodology, there is often no merit aid available. The only financial aid you will get is need-based. So, it is critical to middle- and upper-middle-income families to keep their EFC as low as possible.

Though you may not be eligible for financial aid in the current academic year, you may be eligible for a lot of financial aid in the future. Even families with incomes in excess of $200,000 may be eligible for financial aid at some point.

4. Transfer scholarships are usually much less than regular scholarships.

If you or your student transfers to another school, scholarships are likely lower than one given to an incoming freshmen. The difference in your family’s financial need, determined by your EFC, can mean more grants.

5. Changes in family circumstances can make you eligible for more need-based financial aid.

We all know that life can be full of surprises. A sudden lay-off—a pandemic—for example, could make you eligible for more aid. The lower the EFC, the more financial aid.

And remember, it is never too late to review your situation. Even if you didn’t use cost saving strategies from the beginning, there is still time to check out what you can do for the future.

To learn more about how to reduce EFC for college, contact us at My College Planning Team.

Joe Christopoulos, CFP® is an independent financial advisor with 72 Financial in Arlington Heights, IL. As the son of a financial advisor, Joe has been exposed to the world of investing and financial planning for nearly all of his life. In 2013, he graduated from the University of Illinois at Chicago with a major in Entrepreneurial Studies. Joe is a Certified Financial Planner™ professional who loves working with families and small business owners through all phases of life whether you’re just entering the workforce, preparing for college expenses, or planning for retirement.

Check the background of this Investment professional at FINRA’s “BrokerCheck” found on their website at SIPC’s website can be reviewed at

This LPL Financial Registered Representative may only discuss and/or transact securities business with residents of the following states: FL, IL
Securities and Advisory Services offered through LPL Financial, Member FINRA/SIPC
Neither Joseph Christopoulos, LPL Financial, or 72 Financial are affiliated with My College Planning Team. All are separate entities from one another.

Back To Top