One of the most visible changes in the FAFSA® process has been the introduction of the student aid index, or SAI. The SAI has replaced the expected family contribution (EFC) and while they’re similar, they are a bit different.
When it comes to the SAI, or even the EFC, there is a lot of misunderstanding and misinformation about both figures. Since the SAI is here to stay, let’s go over what the SAI represents.
What is the Student Aid Index
The SAI is computed based on the information you provide on your FAFSA. Once your FAFSA is processed, you will receive your SAI. The SAI is an index number used by your financial aid office to determine your financial need.
The SAI was created as part of the FAFSA Simplification Act in 2021 and was amended in the Consolidated Appropriations Act of 2022. The intention behind the FAFSA Simplification Act was to make the FAFSA process easier, and changing the EFC to the SAI would update an antiquated financial needs formula.
Now that you are beginning to receive information regarding your processed FAFSA, you may be wondering about the impact of the SAI. Since it’s not the same as your EFC, you may not know how it will affect your financial aid.
Expectations of the SAI Calculation
The expectation of the calculation is that it will allow more low-income families and single-family households to qualify for more need-based aid like Federal Pell Grants. While this may be true, there may be some families who may not benefit from the SAI calculation the same way they would with the EFC calculation.
The SAI calculation no longer considers the number of children a household has in college at the same time. In the past, if a FAFSA parent identified that they had more than one student in college at the same time, their income would be divided across those students. Since that is no longer considered, families with multiple children in college at one time may need to request a financial aid appeal. However, schools are not required to adjust financial aid packages based on this circumstance, and each school may treat the situation differently.
When it comes to family-owned small businesses, the FAFSA will ask for the net value of the business regardless of the total full-time employees. In the past, the FAFSA would only ask for small business information if the company had 100 or more full-time equivalent employees.
What is the SAI?
Let’s start off by explaining what the SAI does not represent. The SAI is not the amount you are expected to pay for college. The SAI is an index number used by your school to determine your financial aid eligibility. For many families, they will need to pay more than their determined SAI.
For the 2024-2025 FAFSA cycle, your SAI can be as low as -1500. The lower your SAI, the more financial need you have. And the opposite is also true: the higher your SAI, the less financial need you have. There is no ceiling for the SAI, and it can be an extremely high figure. However, it is still recommended that students from high-income households complete the FAFSA to qualify for merit aid or other non-need-based financial aid. It’s best to reference your school’s grant and scholarship policy.
A student’s SAI is used to determine their Federal Pell Grant eligibility. While you can still determine your financial need by subtracting your SAI from your cost of attendance, there are a few more requirements to determine your Federal Pell Grant eligibility. In general, if your SAI is below 5000, and you meet the other requirements for Federal Pell Grant, you will likely qualify for some Pell Grant funds.
Will My SAI Qualify Me for Financial Aid?
Your SAI will be used by your school to determine your federal student aid eligibility. While it can be used by your state or your school, they may consider other factors and information you provided on the required financial aid applications.
Can I Change My SAI?
Your SAI can change if a correction needs to be made to the information you provided on your FAFSA. If the FAFSA information you provided is accurate and still reflective of your family’s financial situation, then your SAI will not change unless a FAFSA processing error occurred.
If the information on your FAFSA is incorrect, or you had significant changes to your family’s financial situation, you may be eligible to make a correction or to submit a financial aid appeal. A correction occurs when information was reported incorrectly. An appeal is necessary when the information provided was the information requested; however, your family had a significant financial or life event which should be considered and require an update to the information provided.
Please note, there have been several issues with the U.S. Department of Education processing 2024-2025 FAFSAs. If a school is required to make a correction on your behalf, they may not be able to do so until June of 2024.
Understanding the SAI
Understanding the nuances of the SAI is crucial for navigating the financial aid process effectively. While the SAI aims to streamline and enhance the evaluation of financial need, some families might find the shift from the EFC challenging. It's important to stay informed, regularly update your FAFSA information, and communicate proactively with your financial aid office. By doing so, you can better position yourself to receive the financial support necessary for your educational journey. Remember, the SAI is a tool to gauge need, but individual circumstances can vary, and schools may have their own criteria for distributing aid. Take advantage of appeals and corrections processes if your financial situation has changed significantly to ensure you get the best possible support.