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(Application Processing) Subject: 2012-2013 Expected Family Contribution (EFC) Formula Guide (January 2012 Update)

Posted Date:January 5, 2012

Author: William Leith, Service Director, Program Management, Federal Student Aid

Subject: 2012-2013 Expected Family Contribution (EFC) Formula Guide (January 2012 Update)

We are pleased to announce the posting of the updated 2012-2013 EFC Formula Guide on the Information for Financial Aid Professionals (IFAP) Web site. The guide includes EFC worksheets and tables for the 2012-2013 processing cycle. The worksheets and tables in this guide can be used to calculate an estimated EFC for students. The methodology for determining the EFC is found in Part F of Title IV of the Higher Education Act of 1965, as amended (HEA).

The recently enacted Consolidated Appropriations Act, 2012 made several changes to the Title IV student assistance programs. Among them is a reduction in the maximum income that makes an applicant eligible for an automatic zero EFC (auto zero EFC). Prior to this change the income threshold for the 2012-2013 Award Year would have been $32,000. Under the amended law that amount is $23,000. Therefore, we revised the auto zero EFC threshold to $23,000 throughout the updated 2012-2013 EFC Formula Guide.

For more information about our implementation of this change for the January start-up of 2012-2013 application processing, refer to the electronic announcement posted on December 27, 2011 to the IFAP Web site.

If you have any questions regarding this message, contact CPS/SAIG Technical Support at 800/330-5947 (TDD/TTY 800/511-5806), or by e-mail at

Last Modified: 01/04/2012