If you didn’t make payments on your federal student loans and are now in default, don’t get discouraged. It may seem like an overwhelming situation, but you have multiple options for getting out of default. Remember, it’s in your best interest to act quickly to resolve the default, because the consequences of default can be severe.
If you have a defaulted federal student loan owned by the U.S. Department of Education (ED), immediately contact ED’s Default Resolution Group. They will help you figure out the best way to resolve the default based on your individual circumstance.
So, you’ve completed the 2017–18 Free Application for Federal Student Aid (FAFSA®) form. It’s time to sit back and wait for your financial aid offers, right? Not quite. In fact, there’s still plenty to do! Here are 8 things you need to do AFTER you submit your application.
1. Find your Expected Family Contribution (EFC)
Your EFC is a measure of your family’s financial strength and is calculated according to a formula established by law. If your application is complete, your EFC will display in the upper right-hand corner of your Student Aid Report (SAR). If your application is incomplete, your SAR will not include an EFC, but it will tell you what you need to do to resolve any issues.
To understand how the EFC is used, review the following formula, which is what schools use to determine your federal student aid eligibility and your financial aid offer:
Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial need
Schools then do their best to meet your financial need (not your full cost of attendance), but some schools are able to cover more than others.