Understanding the Student Aid Index (SAI) and its Calculator

The Student Aid Index (SAI) is a crucial metric in determining a student's eligibility for financial aid. Replacing the Expected Family Contribution (EFC), the SAI is calculated based on information provided in the Free Application for Federal Student Aid (FAFSA®). This article aims to provide a comprehensive understanding of the SAI, its calculation, and the use of the SAI calculator.

What is the Student Aid Index (SAI)?

The Student Aid Index (SAI) is a number that colleges and universities use to determine how much federal student aid a student is eligible to receive. It is calculated using the information provided on the Free Application for Federal Student Aid (FAFSA®) form. The SAI formula allows school financial aid offices to determine how much federal student aid the student would receive if they attended their particular school.

The Role of the FAFSA®

The Department of Education uses the Free Application for Federal Student Aid (FAFSA®) to collect information and determine an applicant’s Student Aid Index (SAI) by conducting a "need analysis" based on the student's information. The SAI measures the financial strength of the student's family and is used to determine the student's eligibility for federal student aid (grants and loans). Other agencies, such as states and schools, may use this information to award other types of aid. They will determine if the student is eligible for school or state aid, in addition to federal aid.

Using the SAI Calculator

The SAI calculator is a tool that allows students, parents, and educators to estimate the SAI. By entering the required components, users can view the estimated SAI that a school or college financial aid officer would receive. The SAI Calculator page in Anthology Student retrieves and displays the data from the student's ISIR (refer to View and Compare ISIRs Received). The SAI Calculator page enables you to edit/correct ISIR data and calculate the student's SAI. The page reflects the questions on the FAFSA for award year 2024-25 and later. The questions are grouped in the collapsible sections.

For the 2025-2026 FAFSA year, students should use their 2023 tax returns to provide accurate information. This applies to both student and parent information.

Key Components of the SAI Calculator

The SAI calculator takes into account various factors to determine the SAI. These factors include parent and student information, income, assets, and allowances.

Parent Information

Parent information that is input into the SAI Calculator will help to determine student financial aid needs.

Income Additions: Adjusted Gross Income can be found on line 11 of the 2023 IRS Form 1040. Reported income includes wages, salaries, tips and business income.
Income Offsets: Income offsets include past-due federal taxes, other federal agency debts or any state debts in accordance with state laws.
Allowances Against Parent’s Income: Allowances include tax exemptions such as household size or number of dependents.
Contribution from Assets: Parent contribution from assets include but are not limited to cash, savings, child support, investments, parent-owned 529 accounts, vacation homes and real estate, and the net worth of any parent-owned businesses or farms.
Parent Type of Tax Return: Specify the parent or parent spouse type of tax return.
Parent Earned Income Tax Credit Received During Tax Year: Specify the parent's Earned Income Tax Credit received during the tax year. This is required for the determination of the Max and Min Pell for a single student.
Parent Spouse Type of Tax Return: Specify the parent or parent spouse type of tax return.

Student Information

Student information input into the SAI Calculator helps determine student financial aid needs. If applicable, students should use their prior-prior year tax returns to get an accurate SAI estimate. For the 2025-2026 FAFSA year this would be a student’s 2023 tax return.

Income Additions: Adjusted Gross Income can be found on line 11 of the 2023 IRS Form 1040. Reported income includes wages, salaries, tips and business income. Retirement contributions are not reported.
Student Earned Income Tax Credit Received During Tax Year: Specify the student's Earned Income Tax Credit received during the tax year. This information required for the determination of the Max and Min Pell for a single student.

How SAI Affects Financial Aid Eligibility

Financial aid offices use the school’s estimated Cost of Attendance (COA) and student SAI difference to determine a student’s eligibility for need-based financial aid. A school’s COA generally includes tuition and fees, room and board, books, supplies, dependent care, and transportation costs.

SAI Result

Select the Calculate SAI button. The SAI can be a negative number as low as -$1500. If the SAI result is less than -$1500, the value will be set to -$1500.

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Next Steps After Calculating SAI

After calculating the SAI, students and parents should take the following steps:

Compare private student loan options or student loan consolidation options.
Search for scholarships.
Consider education loans to help fill the gap. Remember to borrow federal first, as federal loans are cheaper, more available, and have better repayment terms.
Don’t overlook education tax benefits such as the Lifetime Learning Tax Credit or the American Opportunity Tax Credit

Read also: Investigating the Death at Purdue

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