The Free application for Federal Student Aid (FAFSA) refers to a form which should be filled out every year by the current and future university students and at times, also their parents. In the United States, it is used to determine the eligibility for the financial aid for education. Anything from grants, loans to work-study programs will be approved based on this application.

The FAFSA consists of several questions with regard to the financial position of the student and his family. Based on this information, Expected Family Contribution is determined using a formula.

A variety factors affects the amount of the EFC or Expected Family Contribution. Other institutions and entities such as schools, colleges, and states also use this information to determine the eligibility of the student for other financial aids such as school -aid, state aid etc. A Student Aid Report (SAR) includes a summary of the students' financial aid formation and EFC which will be forwarded to all the schools listed by the students.

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