What Is the Student Aid Index (SAI) and Why Do You Need to Know It?

If you’re preparing to pay for college, there are a few financial aid terms you’re going to hear again and again. One of the most important is the Student Aid Index, usually called the SAI.

It may sound complicated, but the basic idea is actually pretty simple.

Your SAI is a number calculated from the information you provide on the Free Application for Federal Student Aid (FAFSA). Colleges use that number as part of the process of determining your eligibility for financial aid.

And here’s something every family should understand:

Your SAI is not your college bill, and it is not necessarily the amount your family will be expected to pay.

Let’s break it down.

What Is the Student Aid Index?

The Student Aid Index is an eligibility index used by colleges and universities when determining a student’s financial aid.

The SAI replaced the old Expected Family Contribution (EFC). While families may still hear people use the term EFC, the current FAFSA system uses the Student Aid Index.

Your SAI is calculated each year using information submitted on your FAFSA.

Generally, a lower SAI indicates greater financial need, while a higher SAI indicates less financial need.

Your SAI can even be a negative number.

Is My SAI the Amount My Family Has to Pay?

No—and this is one of the most important things to understand.

Your Student Aid Index is not a bill.

It isn’t the amount of financial aid you’ll receive, either.

Instead, it is one piece of information schools use when determining your eligibility for need-based financial aid.

Think of the SAI as part of the financial aid formula rather than a price tag for your family.

How Is the Student Aid Index Calculated?

The SAI is calculated using information provided on the FAFSA by the student and, when required, other contributors such as parents or a spouse.

The FAFSA collects financial and household information that may include things such as:

• Income
• Certain assets
• Family size
• Tax information
• Certain benefits received
• Other financial information required by the FAFSA

The federal formula uses this information to calculate the student’s SAI.

Because financial circumstances can change, your SAI is recalculated each year you complete the FAFSA.

How Do Colleges Use Your SAI?

After your FAFSA is processed, you’ll receive a FAFSA Submission Summary, which includes your official Student Aid Index.

Colleges you list on your FAFSA also receive your FAFSA information.

Each school then uses that information—including your SAI and the school’s cost of attendance—to help determine the financial aid you may be eligible to receive.

That can include different types of aid, such as:

• Grants
• Scholarships
• Federal Work-Study
• Student loans
• State aid
• Institutional aid from the college

The important thing to remember is that your FAFSA Submission Summary is not your final financial aid offer.

Your actual financial aid offer comes from the individual college after you’ve been admitted.

What Does a Low SAI Mean?

Generally, the lower the SAI, the greater the student’s demonstrated financial need.

A negative SAI indicates particularly high financial need and may increase the likelihood that a student qualifies for need-based federal aid, including the Federal Pell Grant.

However, the SAI alone doesn’t tell you exactly how much aid you’ll receive.

Your financial aid package can vary from one college to another, which is why comparing financial aid offers is so important.

What If I Have More Than One Child in College?

This is an important change for parents who remember the old Expected Family Contribution system.

Under the current FAFSA formula, simply having multiple children enrolled in college at the same time does not provide the same adjustment that existed under the old EFC formula.

Families with more than one child in college should complete a separate FAFSA for each student and carefully compare the financial aid offers each student receives.

Where Can I Find My SAI?

After your FAFSA has been submitted and processed, you can find your official Student Aid Index on your FAFSA Submission Summary.

You’ll want to review that summary carefully.

Make sure the information reported on your FAFSA is accurate, because incorrect information can affect your SAI and potentially your financial aid eligibility.

What If My Family’s Financial Situation Has Changed?

Your FAFSA is based on specific financial information, but life doesn’t always cooperate with a formula.

A parent may lose a job. Income may drop significantly. A family may experience unusual medical expenses or another major financial change.

If your family’s current circumstances are substantially different from the information reflected on your FAFSA, contact the financial aid office at the colleges you’re considering.

Financial aid administrators may be able to review certain special circumstances and determine whether an adjustment is appropriate.

Don’t Look at the SAI in Isolation

Your Student Aid Index is important—but it’s only one piece of the college affordability puzzle.

Families should also look carefully at:

• The total cost of attendance
• Grants and scholarships
• Work-study opportunities
• College-specific aid
• Savings
• Payment plans
• Student and parent borrowing
• The amount of debt a student may have after graduation

And don’t assume that the college with the lowest sticker price will automatically be the least expensive.

A more expensive school that provides significant grants or institutional aid could ultimately cost your family less.

Always compare the actual financial aid offers.

Scholarships Should Still Be Part of Your Plan

Financial aid doesn’t end with the FAFSA.

Students should continue looking for scholarship opportunities throughout high school and college.

Through Imagine Scholarships’ partnership with Red Kite, students can access free scholarship search and matching and explore more than $30 billion in scholarship opportunities.

And remember: scholarship searching is not something you do once.

Students should continue looking for opportunities throughout the year and return to the process as their interests, accomplishments, activities and qualifications change.

Build a Complete Plan for Paying for College

There probably won’t be one magical source that pays for everything.

For many families, paying for college involves putting several pieces together:

FAFSA + grants + scholarships + savings + work opportunities + smart college choices + responsible borrowing when necessary.

Understanding your Student Aid Index helps you understand one important piece of that equation.

Imagine Scholarships is here to help you understand the rest.

From college planning and financial literacy to career exploration, internships, videos, downloadable resources and practical guidance, our goal is to help students and families make informed decisions about college—and about how they’re going to pay for it.

The more you understand before the bills arrive, the more choices you’ll have when it’s time to make them.

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