What does my EFC mean?

What does my EFC mean?? HELP?

• I'm attending the Paul Mitchell school and it's 18,000 for 11 months. I got an EFC of 9,780 and was wondering what that all means.Does that mean they're going to pay 9,780?? I know I have to pay it all back, but that would mean i need another loan for 9 grand right??? I'm new to getting loans and haven't even established a credit for myself yet. I am wondering if anyone knows what kind of loan options are available as well..

• Answer:

  An EFC of that amount is just an estimate that tells the school how much you are able to contribute based on your current finances. It does not mean that you have be paying that amount. After you fill out the FAFSA, it gets sent to the schools you listed at the end of the application. Your school will then send you an award letter that lists any scholarships, grants and loans you are eligible for and the amount of each. This letter will give you a better idea of how much will be paying. You can take that total on your letter and subtract it from how much your tuition and room and board (if applicable) to give you a much better estimate. There are many different kinds of loans both private and and federal. Private loans should almost always be a last choice due to the extremely high interest rates so lets concentrate on federal. The loans listed on your award letter might include Federal Subsidized, Federal Unsubsidized, Perkins Loan, Parent Plus Loan, etc. Here is the site: http://www.direct.ed.gov/student.html You do not apply for it unless your school lists these in the letter because you might or might not be eligible for it. Your school will send you further instructions to take out loans.