This scenario applies at any college awarding need-based financial aid with the FAFSA serving as the application to determine financial need.

One of the main reasons a FAFSA is filed is to get an Expected Family Contribution (EFC) number. The EFC is calculated by the Department of Education using information on the FAFSA. It’s an estimate of the student and his/her family’s ability to pay college expenses for the up-and-coming school year. The lower the EFC, the more financial need a student has. Conversely, the higher the EFC, the less financial need a student has.

2022-23 school year:

• FAFSA is filed using 2020 base year income.
• If the student and his/her family’s 2020 income was unusually low due to COVID, this could provide a lower EFC than would be calculated under normal circumstances.
• Student receives need-based financial aid awards based on the lower EFC.

• FAFSA is filed for the student’s second year using 2021 base year income.
• If the student and his/her family’s 2021 income was higher than 2020, this could result in a higher EFC than in the prior year.
• Depending on the change to the EFC, the student may no longer be eligible to receive the need-based financial aid received the year before. Or, if the student is still eligible, the award may be for a lesser amount.

• Most institutions do not have funds to replace need-based financial aid awards once you are no longer eligible.
• This does not apply to scholarships offered based on merit versus financial need.