What methodology is used in the EFC Calculator?
We use a proprietary version of the Institutional Methodology. It is designed to take into account factors in the Institutional Methodology (IM) that distinguish it from the Federal Methodology (FM)
The calculations for the Institutional EFC are intended to be ballpark figures, illustrating how a families situation will be assessed using the Institutional Methodology. It is not customized according to each college's IM.
An example of some of the factors using in calculating the IM are:
- home equity
- business equity
- different allowances for family situations. For example- having more than one student in college is treated as a percentage in IM. In the FM, the family contribution is distributed evenly between all students in the family in college
- students have a mandated contribution
- health costs or k-12 tuition are taken into consideration in IM
The actual IM EFC will vary college to college, depending on the way they apply IM. Some schools cap asset contributions from the home, others do not. The IM in our EFC Calculator gives you an opportunity to illustrate how their family situation can be viewed very differently by schools using FM versus IM.