In 2023, the Expected Family Contribution (EFC) became the Student Aid Index (SAI). With this change came similar questions from students and parents alike, such as: What is SAI financial aid and how does it work?
Although largely similar to the EFC, SAI factors in several different items. With this information, a student’s financial aid is calculated. There are even SAI Calculators available to help with general financial aid guidelines.
This article explains SAI and how it affects a student’s financial aid.
What Is Student Aid Index (SAI) Financial Aid?
A student’s SAI is a specific formula that helps determine how much financial aid a student can receive. This number can be anywhere between -1500 and 999999.
Although it may seem confusing, it’s best to remember that negative numbers mean a student has a higher financial need than others. Any student with an SAI of -1500 would get the most amount of funds from a Federal Pell Grant. This is conditional, which means the student hasn’t maxed out on the amount allowed for Pell Grants and is eligible for this type of financial aid.
It’s important to remember that your SAI number isn’t the same as the amount of financial aid a student can receive. It’s also not indicative of how much money a family must come up with for college — an SAI is its own separate system for determining financial aid eligibility.
No matter what your SAI is, it’s not a financial aid offer. It’s used as a guide to determine how much money a student can receive for college.
Who Uses an SAI Index Number?
SAI numbers are for financial aid professionals as they determine a student’s financial aid offer. This number is created when a student or their parents/guardians complete the Free Application for Federal Student Aid (FAFSA). After completing this free online form, students understand their estimated SAI before an official SAI number is issued to them.
What Goes Into Calculating an SAI?
Whatever information a student and their family provides on the FAFSA goes into creating an SAI number. This includes the following information (but isn’t limited to):
- A student and their parent’s/guardian’s total financial resources
- In some instances, a student’s spouse’s financial resources
- Tax returns
From there, annual living expenses are deducted. This is the minimum amount, not the maximum. Any leftover funds may be used for college expenses.
It’s possible to transfer information from the IRS website to the FAFSA form.
Once a student’s SAI is calculated, schools can determine how much financial aid they need — if they qualify for financial aid at all. In the instance that a student doesn’t qualify, they can always look into applying for student loans.
How SAIs Affect Financial Aid
The lower an SAI number, the greater the financial need of a student. As previously mentioned, this increases the likelihood that they’ll receive financial aid based on their need, including Pell Grants.
Pell Grants are usually just for undergraduate students. They must show that they have an exceptional need for financial aid and cannot have earned any of the following:
- A Bachelor’s Degree
- A Graduate Degree
- A Professional Degree
There are certain instances where students currently in postbaccalaureate teacher certification programs can receive Pell Grants, however. Some incarcerated students who are in approved Prison Education Programs qualify for Pell Grants.
For the 2024-2025 Award Year, Pell Grants are currently maxed at $7,395. Pell Grants differ from student loans because they typically don’t have to be repaid.
Students with higher SAI scores are much less likely to benefit from Pell Grants, so it’s important to be as accurate as possible when completing the FAFSA. This ensures all information is received. Any SAI number below zero essentially guarantees students the maximum amount of federal financial aid possible.
Understanding SAI for Students and Families
Having a higher SAI number doesn’t mean a student won’t receive any type of financial aid, although it reduces the likelihood of receiving “free” funds. It just means that they’ll receive less, but may still qualify for college-funded grants. Their income, coupled with their family’s income, plays a role, however, so these funds aren’t guaranteed. This is where federal and private student loans come into play.
Students often ask what a “good SAI” number is. To understand where they stand financially, complete the FAFSA. However, students can also look at Student Aid Index Charts online, for an estimate of what they may qualify for. This isn’t the FAFSA, but an estimate, so don’t forget to complete all necessary documentation for college.
Since a student’s SAI is just a number, colleges and universities need to convert this number into a dollar amount. From there, they determine what a student and their family need to attend school — the cost of attendance (COA). Financial aid offices also consider if students are receiving funds from elsewhere. This might be a private scholarship or state grant, all known as other financial assistance (OFA).
Once a financial aid office has all this information, they can determine how much financial assistance a student needs to attend school. They offer students financial aid packages that include grants and loans, when applicable. The more funds an educational institution offers a student, the easier it is for them to attend.
Students with a high SAI are much less likely to receive any funds, although it’s not impossible. Students and their families should keep schools apprised of any hardships that affect their ability to pay for school, such as a parent being temporarily unemployed. It’s also important to understand that private colleges are more likely inclined to offer scholarships, making the cost of college more affordable for students who aren’t as financially comfortable as others.
Complete Your FAFSA for Your SAI
Although there are SAI calculators to help students and parents estimate their financial needs, the FAFSA must be completed. Once all information is submitted, a school’s financial aid office can determine a student’s unique financial needs, offering them grants, scholarships, and access to student loans based on their SAI number.
If all this information seems overwhelming, College Funding Professionals has the resources to make applying for college and completing the FAFSA a breeze.
Join our free online Facebook Group to gain access to the best college planning advice anywhere. Our dedicated team of college funding professionals is ready and eager to help, so call us at 201-285-7890 or email us at info@collegefunding.com.
