Estimated financial assistance is the total of grants, scholarships, loans, work-study, and other educational benefits that a student is expected to receive and that must be considered when determining remaining need and avoiding over-awards.
How it works
The aid office assembles all known aid sources for the student. Outside scholarships and benefits are reported by the student or sent directly by the donor. The total EFA is entered into the packaging system. Remaining need is calculated as COA minus SAI minus EFA. Additional aid is limited to that remaining need (or to cost of attendance for non-need-based aid). Changes in EFA trigger repackaging.
Example: a student’s COA is $25,000 and SAI is $3,000. EFA already includes a $6,500 Pell Grant, a $4,000 state grant, and a $2,000 outside scholarship. Remaining need is $9,500. The institution limits further need-based aid to that amount.
How it differs
Cost of attendance is the price side of the equation. Student Aid Index is the family’s expected strength. A single grant or scholarship is one component of EFA. Over-award is the condition that exists when total EFA exceeds need or COA.
Common errors
Omitting outside scholarships or employer tuition benefits from EFA. Double-counting the same award. Failing to update EFA when a late scholarship arrives.
References
- 1. Federal Student Aid estimated financial assistanceComponents included in need calculation
- 2. 34 CFR 673.5 and relatedTreatment in over-award rules
Estimated financial assistance is the total of grants, scholarships, loans, work-study, and other educational benefits that a student is expected to receive and that must be considered when determining remaining need and avoiding over-awards.