The information filed on the Free Application for Federal Student Aid (FAFSA) is used in a formula established by the U.S. Congress that calculates an Expected Family Contribution (EFC). The EFC is an amount that the family is expected to contribute toward the educational costs for that academic year. LMH/RC uses federal methodology to determine federal need. Federal need is computed by subtracting the EFC from the total cost of attendance. The difference is the federal need. In cases of high federal need, LMH/RC is unable to meet 100% of federal need.

Total Cost of Attendance (Including personal expenses)
- Expected Family Contribution (EFC)
= Federal Financial Need

When LMH/RC receives the EFC calculation from the FAFSA for need-based applicants, it is loaded into the mainframe system to determine a tentative need-based aid package for all students accepted for admission.