Expected Family Contribution(EFC) is the measurement techniques of family's strength, when you apply for FAFSA, this will be calculated based on formula established by law. If you are applying for any grant, you have fill the FAFSA form online in which EFC is calculated, if it is below 4000, it means you can get Federal Pell Grant.
Lower the EFC higher the Pell Grant Amount
These are the following things have been considured in the EFC formula
1. Family taxed and untaxed income
2. Family Asset and benefits
3. Family Social Security
When you fill the FAFSA form, everything you have to mentioned in the form about your Family, it will be used to calculate to your EFC, and this EFC will be used for your Grant money and school will be used also this to determine Federal student aid eligibility and grant award.
EFC is the code number only, not an amount used by school and colleges.