This is a no tuition guarantee, not a no parental contribution guarantee. In effect they are saying that if you make under 125,000, you'll only pay 20-25k for living expenses (room/board/textbooks/etc), which is similar to Harvard and Princeton, considering they both try to structure aid so families do not have to take loans out to pay them. Coincidentally (or not), this is also equivalent to the FAFSA EFC as you mentioned.

In this announcement Stanford clearly says that the no parental contribution level is 65,000, raised from 60,000 and now equivalent to Harvard/Princeton.