Navigating EFC: Understanding Tuition Payment Options at EFC

Whether you’re a high school student or a parent of college students, understanding the expected family contribution (EFC) can help you feel better prepared. Learn how the EFC is calculated, what it means for you, and what you can do to ensure that your college experience is as cost-effective as possible.

Understanding the Expected Family Contribution (EFC)

The main driver of any need-based financial aid is the EFC. Its purpose is to measure the total amount of financial resources available to a student. For example, students with an EFC of $0 will be eligible for the most need-based aid. Those with an EFC that meets or exceeds the cost of attendance may not receive need-based aid.

EFC Calculation: A Detailed Look

To obtain an EFC, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA). Ultimately, this provides the information needed to plug in certain values to the EFC formula such as:

Your family’s annual income (taxed and untaxed)
Assets like a home, a 529 account, or a trust
Benefits like severance pay, unemployment, or Social Security disability or retirement.

This pool of assets will be discounted by factors like family size and the number of family members attending college. Generally, families that will have two or more members in college at the same time will have a lower EFC than families with only one college student.

The EFC is calculated using a specific formula. This formula looks at adjusted gross income (AGI) and other factors when determining your EFC.

EFC’s formula uses the following:

Family’s AGI
Taxable and non-taxable income
Assets
Family size
Number of college students
Ages of family members

The formula also looks at the student’s income. Essentially, the EFC combines the family’s expected contribution and the student’s contribution to come up with a final number.

How EFC Affects Financial Aid Packages

Each school has a set cost of attendance. This includes tuition and estimates or averages for books, supplies, room and board, and transportation. The school will evaluate a student’s “financial need” by subtracting that student’s EFC from the school’s cost of attendance.

For example, a student with a $25,000 EFC who wishes to attend a school with a $50,000 per year cost of attendance, that student’s financial need would be $25,000 per year. This doesn’t mean that the student will necessarily be offered $25,000 in need-based aid. Instead, this number provides a way for the school’s financial aid office to prepare a financial aid package tailored to the student.

Don’t be alarmed if your EFC comes in at a far higher amount than you feel your family could afford to pay for college. Many families are surprised to see that their EFC totals a third or even half of their net household income. The figure provides a metric for colleges to use to determine which of its students have the greatest financial need.

Read also: Affording ECU

Colleges use your EFC to determine your financial aid packages. You may have luck working with the financial aid office if your financial situation has changed or if you cannot afford the cost of college based on the package you received.

If your parent or guardian lost their income or if your family experienced a significant increase in medical bills since you filed the FAFSA, you can also appeal your aid package.

Qualifying for Financial Aid: Need-Based vs. Merit-Based

Financial aid programs offer need-based or merit-based aid. The EFC addresses only the eligibility for need-based assistance. However, the lower a student’s EFC, the more likely he or she is to receive some need-based aid in a financial aid offer.

If a school’s need and merit-based financial aid offer only cover a portion of the total cost, the student and their family can make up this difference through a couple of ways:

Federal or Private Student Loans
Parent Plus Loans
529 Savings Plan

Colleges and universities rely on the EFC to generate financial aid packages for each student. For example, students whose EFC is below a certain threshold ($5,576 in 2019) will be eligible for Pell Grants. Other students may qualify for state-specific grants or scholarships to help cover the cost of attendance.

Read also: Withdrawals for College: A Guide

The financial aid award letter sent to each student will spell out what the cost of attendance is, what the student’s EFC is, what financial aid is available from the school, and how the student can cover any difference between the cost of attendance and the aid package.

EFC not only regulates your financial aid amounts, but also determines your Pell Grant eligibility. The Pell Grant was established to provide financial aid to degree-seeking undergraduate students who demonstrate financial need and maintain sufficient progress in their programs. Pell Grants do not need to be repaid.

When to Start Thinking About EFC

Ideally, planning for college should start as early as possible. If a family’s financial situation has changed, Their estimate may no longer be a realistic assessment. For example, if there’s been a job loss or other significant changes in a family’s financial situation. It is possible to appeal a college’s aid award or have the EFC recalculated to reflect current circumstances better.

Additionally, students may also want to consider starting at a community college or local state school, then transferring to another school later in their academic career. Though it’s important to investigate which credits can transfer, this can allow students to receive an education from their school of choice at a mere fraction of the cost of four years of attendance.

What if You Don't Qualify for Need-Based Aid?

If your family’s EFC is high enough, there’s no need to worry. It allows you to focus your college search on schools that offer merit scholarships, work-study programs, and more. College costs have risen significantly over the past several decades. However, there are still many schools that have maintained relatively low tuition rates. This can help prospective students calculate the cost of attendance and figure out what aid is available.

Tuition Payment Options at New England College (NEC)

Financial Aid at NEC: An Overview

New England College (NEC) offers various financial aid options to help students finance their education. Financial aid includes grants, scholarships, loans, and work-study programs.

To be considered for federal financial aid, citizens and eligible non-citizens must submit the Free Application for Federal Student Aid (FAFSA).

Understanding Your Financial Aid Offer at NEC

Your financial aid offer is based on the information you provided on the FAFSA. To review the amount of financial aid you will receive each term, access MyNEC. Financial aid funds will be disbursed in equal amounts at the beginning of each term you are enrolled and after all requirements are complete.

The amount of financial aid is contingent upon full-time enrollment. If you receive outside financial assistance for educational expenses such as scholarships or employer-sponsored tuition, you must notify the SFS Office in writing detailing the amount you anticipate receiving for the financial aid award year. Financial aid awards are considered automatically accepted.

Scholarships and Grants at NEC

NEC provides various scholarships and grants to eligible students. Incoming students are automatically reviewed for scholarship eligibility - no separate application is required.

Restrictions to Institutional Awards:

Students receiving any form of tuition remission to attend New England College are not eligible to receive any institutional scholarship.
NEC Plus students are not eligible to receive merit-based awards as they are already attending at a substantially discounted rate.
Students graduating from 10 high schools near New England College are eligible for half-tuition or a merit scholarship listed above, whichever is higher. Available to undergraduate students.

Federal and NEC Grants:

Pell Grant: This program provides need-based federal grants to students based on their family contribution, as determined by the federal government. Recipients must not have already received a bachelor’s degree.
Federal Supplemental Educational Opportunity Grant (FSEOG): The FSEOG is a need-based federal grant available to students with a high level of financial need who are working towards their first bachelor’s degree. Available for traditional Undergraduate students.
New England College Grant: NEC Grant funds are awarded based on demonstrated need using the institution’s methodology. Students must file a complete FAFSA and be enrolled on a full-time basis to be eligible for consideration for NEC Grant funding. Priority consideration is given to students who apply on or before the established priority deadline.

Graduate Assistantships:

New England College’s School of Graduate and Professional Studies offers students the opportunity to apply and participate in Graduate Assistantships, while receiving a tuition discount. Coursework and other academic obligations are priority responsibilities of graduate students at New England College.

Payment Arrangements and Policies at NEC

Arrangements for the payment of NEC tuition and fees must be made prior to the start of each term. By enrolling in a course(s), you agree to pay all charges incurred.

If you are subsequently unable to obtain any portion of the financial aid which you intended to use for payment, you understand that you are not absolved of personal responsibility for payment, and NEC will seek payment from you directly. This includes, but is not limited to:

Federal financial aid (loans and/or grants) being declined or the actual award being insufficient to cover all costs noted above.
Any third-party payment arrangements (including but not limited to corporate tuition assistance, military tuition assistance, Veterans Administration benefits, scholarships) do not occur for any reason or are insufficient to cover all costs noted above.
In the event that any arranged credit card or ACH payment declines.

Billing: You agree to view and pay your student account prior to the start of the term. NEC uses electronic billing as its official billing method.

Collections: You agree that you shall be individually liable for all fees and expenses of, for and incidental to the collection of all amounts due; this shall include, without limitation, reasonable collection fees incurred with third-party agencies, and reasonable attorney and paralegal fees and other costs incurred in litigation, mediation, arbitration, and bankruptcy proceedings, including appeals.

Withholding of Official Records: No official documents of completion of individual courses or degrees will be awarded by the NEC Registrar until outstanding payment is received in full.

If at any time you have questions about your account, please contact the Student Financial Services Office. Financial holds will prevent participating in commencement, registering for future courses, and receipt of a diploma.

It is your responsibility to keep your address and phone number up to date in MyNEC so that NEC can communicate with you.

Important Deadlines and Policies at NEC

Billing Deadlines: The fall semester billing deadline is July 15. The spring semester billing deadline is December 15.
Non-Participation: It is extremely important that you begin to actively participate in your classes immediately to achieve academic success. EST on the Sunday of the first week of the session. Failure to do so will demonstrate nonparticipation, and you will be automatically withdrawn. EST on the Sunday of Week 2, you will be removed from that course.
Financial Aid and Non-Participation: If you were using financial aid to help pay your tuition costs and were removed from class due to non-participation, you will not be eligible to receive financial aid.

Withdrawal Policies at NEC

New Students: If you are a new student, to withdraw prior to the start of your first class you must contact your admissions counselor.
Returning Students: Returning students may drop courses through MyNEC until the published drop period is over. Failure to receive proper materials or for technology to properly perform does not excuse you from this withdrawal policy.

You are responsible for maintaining written evidence of all drops/withdrawals.

Loan Options at NEC

NEC encourages students to pursue all state, federal, and institutional aid available to them first in financing their education. If you need additional financing after exhausting these resources, or if you do not qualify for federal loans, there are several lenders who offer alternative/private education loans. The terms and conditions of private loans may be less favorable than federal loans.

Federal Loan Options:

Federal Stafford Loan: A low-interest, federal student loan. In order to be eligible for the supplemental Unsubsidized Stafford loan, a student must be either independent by federal standards or, for dependent students, parents must receive a credit denial for the PLUS loan.
Parent Loan for Undergraduate Students (PLUS): The Parent Loan for Undergraduate Students (PLUS) must be borrowed by a parent. The parent borrower may apply at studentaid.gov 180 days prior to the term start. The parent(s) can borrow up to the cost of education less financial assistance awarded and accepted by the student. The interest rate and origination fees may be found at studentaid.ed.gov.
Graduate PLUS Loan: The Graduate PLUS Loan for Graduate level students interest rate may be found at studentaid.ed.gov.

Federal loans are submitted to the National Student Loan Data System (NSLDS) and may be accessed by schools, lenders, and guarantee agencies determined to be authorized users of the data system. Students may review their complete loan history and loan services on NSLDS.

Private Loan Options:

New England College does not maintain a preferred lender list. The college will process your financing options from any participating lender program. NEC encourages you to thoroughly research lenders to ensure you receive the best rates and services that meet your needs. Make sure to compare borrower benefits ranging from origination and default fees that can reduce the initial cost of the loan as well as benefits to save money during repayment such as auto-debit interest rate reductions. Interest rates for private loans are typically variable, meaning they can change over time. These rates often depend on benchmark rates like the Prime Rate or the Secured Overnight Financing Rate (SOFR), as well as the lender’s specific terms.

Used by NEC students during the 2024-2025 academic year.

Loan Servicers and Repayment:

Loan Servicers are the companies that handle the billing and other services for Federal Student Loans. The National Student Loan Database System will list all of the Federal Student Loans that you have borrowed as a student. There are several repayment options and options for deferment or forbearance if you experience difficulties with repayment of your Federal Loans. Remember to keep in touch with your loan servicer(s) regarding your circumstances to review all of your options and avoid default.

Code of Conduct:

The Code of Conduct applies to New England College employees, agents, and officers. We strictly prohibit revenue-sharing arrangements with any lender. We will not offer funds for private loans to students in exchange for providing concessions or promises to a lender of volume or preferred lender arrangements. We will process certifications from any lender in a timely manner. Financial Aid staff will not accept compensation for any type of consulting arrangement or contract to provide services to or on behalf of a lender relating to educational loans.

Other Payment Options at NEC

Deposit for Returning Students: Returning students: A $200 deposit is due no later than May 1 to hold academic space. Payment is accepted online at MyNEC.
International Payments: New England College has partnered with Flywire to offer a secure and streamlined way to make a payment from your home country. Flywire allows you to pay from almost any country offering excellent foreign exchange rates and no hidden fees.
Cash and ACH Payments: Cash can be accepted at the Office of Student Financial Services. NEC accepts payments via ACH for domestic students. ACH payment may be made online in the MyNEC portal.
Tuition Protection Plan: The Tuition Protection Plan can be helpful if a student must withdraw from school after classes begin. It also includes Student Life Assistance: a 24-hour hotline to make sure students get the help they need in an emergency. Learn more by visiting gradguard.com/tuition/nec or calling 866.724.4384. Insurance must be purchased prior to the first day of classes.
Overdue Accounts: Overdue accounts referred to a collection agency will incur the agency’s fee.
Monthly Payment Plan: New England College offers an interest-free monthly payment plan (administered by Nelnet Campus Commerce). To enroll in the payment plan, log in to MyNEC, select Online Account and Pay now, then set up a Payment Plan.

1098-T Forms

1098-T forms for eligible students are available online through MyNEC. The 1098-T form assists you in determining if you are eligible to claim an education tax credit on your tax return. The 1098-T form is informational. Receipt of the 1098-T form does not imply eligibility for a tax credit.

NEC reports amounts billed to a student’s account in the calendar year on the 1098-T. Therefore, the amount used to calculate your education credit will not necessarily be the same as the amount that appears in Box 2.

Understanding EFC at Rice University

The Expected Family Contribution (EFC) is comprised of two components: a parent contribution and a student contribution. After various allowances (i.e. protections) are calculated for both parent and student income and assets, a reasonable amount the family should be able to contribute toward the student’s costs is determined. Each family’s application is provided a holistic review to ensure equity while also considering each family’s unique circumstances.

Parent Contribution:

The parent contribution calculation takes into account many different factors. In cases of separation or divorce, we expect both households to participate in the partnership to fund a student’s education. Income and assets from step-parents in the custodial household are also considered available resources to the student. The custodial and non-custodial contributions are calculated separately. The final EFC reflects one parent contribution; it is ultimately up to each family to determine how to best meet that contribution between both households. We will never share financial information of one parent with the other. For The Rice Investment, the financial aid offer may be prorated to take into account the non-custodial parent contribution rather than using a direct combination of parent incomes. In an effort to minimize the stress that may accompany gathering information for both households to complete the application, only the custodial parent will need to reapply each year. We understand there may be extenuating circumstances regarding the family’s ability to collect information about the non-custodial household. Families may petition to waive the non-custodial portion of the contribution by submitting the Non-Custodial Parent Waiver Request. These requests are reviewed on a case-by-case basis by our Appeals Committee and are not guaranteed to be approved.

Student Contribution:

In addition to the parent’s responsibility, we expect students to assist with their college expenses. A minimum student contribution is factored in for each student to reflect what a student should reasonably be able to contribute from summer work-earnings. Students with significant wages or assets may be expected to contribute more to their education.

Meeting the EFC:

We understand not every family is able to fulfill their EFC with cash on hand. There are many options available to help cover the family’s responsibility towards the bill and indirect costs. The most popular options include taking advantage of the installment plan offered by the Cashier Office and student or parent loans. Outside aid is considered a resource available to the family and will reduce the student’s demonstrated need rather than the EFC. We understand the application process cannot always give us a complete picture of the family’s current ability to pay. If there are extenuating circumstances that you feel are not adequately reflected in your financial aid offer, then you may submit an appeal.

Additional Financial Considerations

Personal Expenses: Personal expenses, including books and supplies, clothing, laundry, travel, and recreation will vary from student to student. Each student should plan personal expense requirements and develop a budget based upon those expectations. Students should consider establishing a checking account at a local bank in order to pay for books, supplies, and other personal expenses.
Textbooks and Course Materials: Textbooks and course materials for both undergraduate and graduate courses can be purchased through the online bookstore operated by NEC’s partner eCampus. eCampus offers many purchasing options, based on availability, including new condition, used condition, rental, and digital formats. Federal Financial Aid recipients with excess funds (financial aid funds greater than the direct billed expenses) may request a book voucher from the Student Financial Services Office beginning one week prior to the semester start.
Refunds: A refund or credit for tuition and board only is issued according to the schedule listed. All other charges are non‐refundable. If the tuition and fees are not paid in full, any refund/credit is applied to the unpaid balance.
Return of Federal Financial Aid: Students who withdraw before 60% of the term is completed will have their eligible federal financial aid recalculated according to the length of their enrollment. The percentage of time the student remained enrolled is the percentage of eligible aid for that period that the student earned. A student who remains enrolled beyond the 60% point earns all federal aid for that period. The return of federal financial aid recalculation is performed independently of institutional costs incurred for the period of enrollment. The return of federal financial aid recalculation is performed within 30 days of a withdrawal. Students are responsible to pay their New England College account balance due as of a result of a return of federal financial aid recalculation, within 30 days. If as a result of the calculation, a student is eligible for federal financial funds that have not yet been disbursed, any grant funds will be disbursed first. If the student is eligible for loan funds, a notice will be sent to the student to sign and return within fourteen days if they choose to accept the loans.
Return of Unearned Tuition Assistance: Students who withdraw before 60% of the term is completed will have their eligible tuition assistance recalculated according to the length of their enrollment. The percentage of time the student remained enrolled is the percentage of eligible tuition assistance for that period that the student earned. A student who remains enrolled beyond the 60% point earns all tuition assistance for that period. The Return of Unearned Tuition Assistance calculation is performed independently of institutional costs incurred for the period of enrollment. Unearned assistance is refunded to the Military Service. Funds are remitted within approximately forty-five days of a withdrawal.
Direct Deposit: Students may enroll in direct deposit in the online billing portal of MyNEC.

Tips for Filing the FAFSA

No need to wait. You may file your FAFSA with estimates and update it once your taxes are complete. We encourage you to file as early as possible. You may apply for financial aid any time starting in December.
Many families mistakenly think they don’t qualify for aid, and there are sources of aid such as the Unsubsidized Stafford loan and PLUS loan that are available regardless of need.
Yes, the FAFSA must be renewed annually. Your federal, state, and New England College need-based aid are determined annually.

Where to Go for More Information

If you have more questions, please ask.

Understanding EFC: Key Takeaways

What is EFC? Expected Family Contribution, also known as EFC, tells you what your family should expect to pay for college tuition, fees, and room and board.
What Determines EFC? Your family’s financial condition and health help to determine your EFC. EFC uses a formula, created by the federal government to determine how much a family should be able to pay for one year of a child’s college education.
How is EFC Calculated? After a family fills out the Free Application for Federal Student Aid or FAFSA, the official EFC is determined. This application asks questions about the student’s and parents’ income, benefits, and assets. All aspects of your family’s financial situation can affect your EFC. The student’s liquid assets and past tax year income have the most significant impact.
Appealing Your EFC: You can appeal to your school’s financial aid office to have your EFC reevaluated due to special circumstances.
EFC and Financial Aid: Your EFC will have a significant impact on the amount of need-based financial aid you are eligible to receive. By definition, financial need is the total cost of attending one year of school minus your EFC. Once you know what your EFC is, you can look at the cost of each college and make a guess at how much financial aid you are likely to receive. You can also start planning for how you will pay for college.

tags: #efc #tuition #payment #options