What’s the Student Aid Index (SAI)? – Financial Aid for College

The first step towards receiving financial aid for college is completing the Free Application for Federal Student Aid (FAFSA). Your SAI is determined by the information you input on the FAFSA about you and your family’s finances. It considers you and your parent’s (if you’re a dependent) or your spouse’s (if you’re married) income and assets. The SAI is a number that shows how much help a student might need to pay for college. Let’s look at what SAI means, how it’s figured out, and how it affects financial aid.

Understanding the SAI

The SAI is a number calculated using a formula, ranging from –1,500 to 999,999. A lower SAI means that you need more financial help. For example, a negative SAI (as low as –1,500) shows that you have a higher need for financial aid and may qualify for more money, like the maximum Pell Grant, as long as you meet other requirements.

It’s important to understand that SAI is not:

• The exact amount of money you will get.
• What your family has to pay out-of-pocket.
• Your final financial aid offer.

Instead, the SAI is a number used by financial aid officers to decide how much money you can get.

How Is the SAI Calculated?

The SAI calculation includes several things:

1. Family Income: Both taxed and untaxed income are counted, including your family’s adjusted gross income and any tax-free income.
2. Retirement Contributions: Money your family puts into retirement accounts like SEP, SIMPLE, or other plans is also counted.
3. Assets and Benefits: This includes savings and benefits like Social Security or unemployment payments.
4. Income Protection Allowance: This means that some income is not counted, so families with less money get treated more fairly.

For dependent students, the SAI formula uses both the parents’ and the student’s income and assets. For independent students, it only uses the student’s (and their spouse’s) income and assets.

Unlike the old EFC, the SAI does not consider how many family members are in college, and it also doesn’t include state and local tax allowances.

Example of How SAI Impacts Financial Aid

Here’s an example to show how SAI affects financial aid:

• Cost of Attendance (COA): $35,000
• Student Aid Index (SAI): 2,000
• Other Financial Assistance: None

To figure out financial need, subtract the SAI from the Cost of Attendance:

COA ($35,000) – SAI ($2,000) = $33,000

This means the student could qualify for need-based financial aid up to $33,000, if they don’t have other grants or scholarships. However, this doesn’t mean they will get exactly that much—it just shows what they are eligible for.

Why Is the SAI Important?

The SAI is important because it helps colleges decide how much financial aid a student might get. A lower SAI means the student needs more help, which could lead to more grants, work-study programs, and loans. By reflecting a family’s financial situation, the SAI helps make sure that aid goes to those who need it most.

How to Access Your SAI

After you complete and submit your FAFSA, you will see an estimated SAI on the confirmation page. Once it is processed, the official SAI will be included in your FAFSA Submission Summary. This summary will also show your estimated eligibility for Pell Grants, federal student loans, and other aid.

Final Thoughts

The Student Aid Index (SAI) is an important part of getting financial aid for college. It helps schools figure out how much money a student might need. While the SAI does not tell you exactly how much aid you will get, it plays a big role in showing your need for help.

For students and families, understanding how the SAI is calculated can make the financial aid process easier to understand and help you plan for college costs. Remember, it’s important to file your FAFSA correctly and on time so that your SAI shows your true financial situation, which can help you get the most aid possible.