Understanding the Student Aid Index (SAI)

The Student Aid Index (SAI) is a crucial element in the college financial aid process. It serves as an eligibility index number that a college’s or career school’s financial aid office uses to determine how much federal student aid a student would receive if the student attended the school. Understanding the SAI is essential for students and families navigating the complexities of funding higher education.

What is the Student Aid Index (SAI)?

The Student Aid Index (SAI) is an eligibility index number that the financial aid office uses to determine how much federal aid a student is eligible to receive. This number results from the information that students provide on the FAFSA® form. Effective with the 2024-25 award year, Expected Family Contribution (EFC) became the Student Aid Index (SAI). The EFC was a measure of a family’s ability to contribute towards a student’s cost of attendance (COA), calculated according to a formula established by law.

If you’re filling out the FAFSA, you might notice an unfamiliar term popping up: Student Aid Index, or SAI. Introduced as part of the FAFSA redesign for the 2024-25 school year, the SAI replaced the old Expected Family Contribution (EFC). Why the change? Because the EFC often misled students and families into thinking it was the exact amount they would have to pay out of pocket, which wasn’t true. The Student Aid Index is a better guide. It’s a number that colleges and universities use to estimate your financial need and put together your aid package.

The SAI can range from -1,500 to 999,999. A lower number means you will likely qualify for more need-based aid, like grants and subsidized loans.

How the SAI is Calculated

The Student Aid Index is calculated using the information you (and your parents or spouse, if applicable) report on your FAFSA. Most of the time, your financial details (i.e., income and tax info) are pulled directly from the IRS into the FAFSA to make things easier.

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Here’s what goes into the calculation:

Your family's income (including taxable and untaxed income)
The net worth of any assets (like savings, investments, and real estate)
Your household size

The formula totals your available financial resources and then subtracts an amount for basic living expenses (called the Income Protection Allowance). What's left over is what the government thinks could potentially go toward college costs, and that becomes your SAI.

One big change to know: The number of siblings you have in college no longer reduces your SAI, a shift from the old system. Also, for the first time, your SAI can be negative, which helps identify students with the greatest financial need.

The SAI is calculated by looking at tax information, savings, assets, and investments that you or your parents may have. All of this information is collected on your FAFSA. There’s a long calculation used by the government. This summary will include your SAI and an estimate of your federal aid. If you haven’t filled out your FAFSA yet, you can get a good number using the federal government’s Federal Student Aid Estimator.

SAI and Financial Need

The SAI is not the amount of money a family will have to pay for college or the amount of federal student aid the student will receive. A negative SAI indicates the student has a higher financial need. It is more of a rationing tool that compares the relative financial strengths of all families applying for aid.

Here’s how SAI works: After you fill out your FAFSA, the Department of Education reviews your (and often your parents’ or spouse’s, if you’re married) financial information, such as your/your family’s income and assets. Based on that, they calculate your SAI by subtracting the amount needed for your family’s normal living expenses from your reported income and assets.

Here’s the basic formula colleges use to figure out your financial need:

Cost of Attendance - Student Aid Index = Financial Need

To illustrate: Let’s say your school’s annual cost of attendance is $40,000, and your SAI is 0. That means, according to the FAFSA calculations, you have $40,000 of financial need. If your SAI is $5,000, then your financial need would be $35,000.

This number helps colleges decide how much need-based aid you may qualify for, including grants, scholarships, work-study jobs, and loans.

The SAI also plays a big role in determining your eligibility for federal aid, especially the Pell Grant (Speaking of, here’s a guide to Pell Grants). Pell Grants are designed for students with significant financial need. If your SAI is 0 or negative (the lowest possible SAI is -1,500), you’ll likely qualify for the maximum Pell Grant award. As your SAI gets higher, the amount of Pell Grant money you qualify for may go down.

How Colleges Use Your SAI

Colleges use your SAI to decide how much financial aid they can offer you. After determining their cost of attendance for the year, the financial aid office subtracts your SAI and any other grants or scholarships you’re receiving to calculate your remaining financial need.

From there, they put together a financial aid package that may include:

Need-based grants
Scholarships
Federal student loans
Work-study opportunities

A lower SAI usually means you’ll qualify for more need-based aid. However, not every school can meet your full financial need. Some will cover a larger percentage of your financial need than others.

Understanding Key Financial Aid Terms

Navigating the world of student financial aid requires familiarity with several key terms:

Cost of Attendance (COA): The total amount it will cost you to go to school-usually stated as a yearly figure. COA includes tuition and fees; on-campus housing and food (or a housing and food allowance for off-campus students); and allowances for books, course materials, supplies & equipment, transportation, federal loan fees, and dependent care. It also includes personal expenses; costs related to a disability; and reasonable costs for eligible study-abroad programs. For students attending less than half-time, the COA includes tuition and fees and an allowance for books, supplies, transportation, and dependent care expenses, and can also include housing and food for up to three semesters or the equivalent at the institution. But no more than two of those semesters, or the equivalent, may be consecutive. Our estimate of each year’s total college costs includes tuition and fees, housing and food, books and supplies, personal expenses, and transportation.
Financial Need: The difference between the cost of attendance (COA) at a school and your Student Aid Index (SAI). This is the Cost of Attendance for Notre Dame minus your Student Aid Index (SAI).
Financial Aid Package: The total amount of financial aid (federal and nonfederal) a student is offered by a college or career school.
Direct Loan: A federal student loan, made through the William D. Department of Education at participating schools.
Disbursement: Payment of the loan funds to the borrower by the school.
Federal School Code: Department of Education assigns to each college or career school that participates in the federal student aid programs. In order to send your FAFSA information to a school, you must list the school's Federal School Code on your application.
Federal Student Aid ID: FSA ID stands for Federal Student Aid ID.
Merit-based Aid: Based on a student's skill or ability. Example: A merit-based scholarship might be awarded based on a student's high grades. Money offered to students who show exceptional accomplishment, leadership, commitment to service, and intellectual ability.
Verification: The process your school uses to confirm the data reported on your FAFSA. The process the federal government uses to confirm that the data reported on your FAFSA is accurate.
Income Reduction Appeal: An appeal a family makes requesting for the Financial Aid Office to consider their income losses so that the family’s strength is measured using recent information. The process takes time and requires supporting documentation.
Student Employment: A job opportunity on campus to build a student’s leader skills and resume. The jobs varies as well as the hourly rate. If you receive Federal Work-Study, the earnings from this source is not counted against you on the following FAFSA.
Loan Grace Period: The 6-month period after graduation or when a student falls below half-time enrollment status where the loan is pending.
Deferment: The period where the loan payment is deferred and depending on the type of the loan interest may accrue.
Loan Default: A status where a loan was not repaid according to the loan terms and conditions.
Forbearance: A status where the loan is temporarily deferred (generally a year) due to financial hardship.
FAFSA Submission Summary: The report the student receives once they have successfully submitted the FAFSA.
CSS Profile: The CSS Profile collects information about you and your family’s financial circumstances to help the University offer institutionally based funding through need-based scholarships. Some of the questions on the CSS Profile are also included on the FAFSA, but the extra information provided on the CSS Profile helps us to understand your family situation more fully.
Need-Based Aid: Money offered to students whose families need assistance with the full cost of paying for college.
Total Income: The sum of all positive income to a family before pre-tax deductions. Total income excludes losses from investments, businesses, benefits, and any other source of negative income. Business deductions for the use of the home, depreciation, or other household expenses are also excluded from total income calculations.

Interpreting Your SAI

What is a "good" SAI?

Generally, a "good" SAI for students means a lower number. The lower your SAI, the more likely you are to qualify for grants, scholarships, and need-based aid. A negative or zero SAI often unlocks the maximum amount of federal aid available. As a student, a good Student Aid Index number is one that will result in lots of scholarships and grants (or “free money”), allowing you to attend college as cheaply as possible. The lower your SAI, the more need-based aid you will receive.

What if my estimated Student Aid Index is negative?

A negative SAI (as low as -1,500) is a good thing when it comes to financial aid, in that it means you’ll qualify for the close to the maximum amount of need-based aid, like the full Pell Grant. Some colleges may also offer additional institutional grants if they see that your need is especially high.

What is a high SAI?

A high SAI means that, based on your FAFSA information, the government estimates that you have more ability to pay for college. Students with higher SAIs are less likely to qualify for need-based federal aid but may still be eligible for merit scholarships or other non-need-based financial support.

What is a low SAI?

A low SAI means you have significant financial need. Students with low SAIs often qualify for the most generous need-based aid, like Pell Grants, subsidized federal loans, and sometimes additional aid from colleges to help cover remaining costs.

Finding and Understanding Your SAI

After you submit your FAFSA, you'll receive a document called the FAFSA Submission Summary. Your official SAI will be listed there. This number is calculated based on the financial information you provided, and colleges use it to determine your eligibility for financial aid.

Estimating Your SAI

Wondering what your Student Aid Index might be before you even submit your FAFSA? Department of Education. The Federal Student Aid Estimator asks you a series of basic questions about your family’s income, assets, and household size. Use the Federal Student Aid Estimator to get an early estimate of your Student Aid Index and potential financial aid. It’s important to know that the estimate isn’t official. Your final, official SAI will only be calculated once you submit the FAFSA. But using the estimator can help you start planning.

Many colleges offer net price calculators like this one to help you estimate your actual cost of attendance based on your financial information.

Can You Challenge Your SAI?

You can’t directly challenge your SAI with the federal government. Still, you can contact the financial aid offices at the colleges you’re applying to and submit a financial aid appeal letter. Colleges may be able to change some numbers on your FAFSA if there is good reason to do so. For example, your financials may have changed since the FAFSA tax year that was used. This might result in more federal or college aid. Contact your college aid offices and let them know why you think your SAI might be wrong or why you need to appeal for more money.

If you think your SAI seems incorrect, there are two things you can do. First, carefully look through your answers on the FAFSA. (You can check your answers on your FAFSA Submission Summary.) You may have accidentally put in the wrong number in the financials or family section. Or there may have been problems with your tax upload. Correct any mistakes that you can and reach out to the financial aid offices of the colleges you hope to attend to make sure the information is correct on their end.

The FAFSA and Other Application Processes

The Free Application for Federal Student Aid is an application completed every year that collects information about your family's financial circumstances to determine eligibility for federal aid programs. When you complete the FAFSA, you’ll automatically be considered for Federal Pell Grants and Federal Supplemental Educational Opportunity Grants, applicable state grants, Federal Work-Study eligibility, and Federal Direct Loans. You can access the FAFSA here.

Some institutions also use the CSS Profile. The College Board's Institutional Documentation Service. This is the document processing center we use to manage financial aid application materials for prospective students.

Dependency Status

Federal regulations require that all students under the age of 24 be considered a dependent of the parent for the purposes of financial aid. Only when a student has been declared a ward of the court, has been in foster care after the age of 13, is considered an unaccompanied (homeless) youth, or has experienced other similar circumstances, may a student be considered independent.

Additional Considerations

The Role of the Financial Aid Office

College financial aid officers may use your SAI to guide them as they put together a package of grants, scholarships, and loans that will make it financially possible for you to attend their school.

Understanding Verification

The process your school uses to confirm the data reported on your FAFSA. The process the federal government uses to confirm that the data reported on your FAFSA is accurate.

Student Employment Opportunities

A job opportunity on campus to build a student’s leader skills and resume. The jobs varies as well as the hourly rate. If you receive Federal Work-Study, the earnings from this source is not counted against you on the following FAFSA.

Loan Repayment

Loan Grace Period: The 6-month period after graduation or when a student falls below half-time enrollment status where the loan is pending.
Deferment: The period where the loan payment is deferred and depending on the type of the loan interest may accrue.
Loan Default: A status where a loan was not repaid according to the loan terms and conditions.
Forbearance: A status where the loan is temporarily deferred (generally a year) due to financial hardship.

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