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Whether you're a first-time freshman, a returning student, or a parent trying to support your child through the process, learning the ins and outs of the SAI will help you make smarter decisions!
If you’re applying for college financial aid, chances are you’ve come across the FAFSA—the Free Application for Federal Student Aid. It’s the gateway to thousands of dollars in federal, state, and school-based aid. But if you’ve filled it out before, you may also be familiar with the term Expected Family Contribution (EFC)—a number that often caused confusion and stress for families trying to plan for college.
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Here’s the big update: the EFC has now been replaced by a new calculation called the Student Aid Index (SAI). While the name change might seem minor, it’s actually part of a much larger effort to make the financial aid process more transparent, fair, and student-focused. The goal? To give families a clearer picture of their true financial need and better access to funding that makes college possible.
Understanding how the SAI works—and how it affects the grants, scholarships, and loans you may be offered—is critical for any student planning their college budget. Whether you're a first-time freshman, a returning student, or a parent trying to support your child through the process, learning the ins and outs of the SAI will help you make smarter decisions, avoid surprises, and ultimately get the most financial aid you qualify for.
The Student Aid Index, or SAI, is a number used by colleges and universities to determine how much financial aid you’re eligible to receive. It replaces the outdated Expected Family Contribution (EFC), which was often misunderstood to mean the amount your family would have to pay out of pocket for college.
But the SAI isn’t a bill. It’s simply an index—meaning a score or figure—that helps colleges calculate your financial need.
Your Student Aid Index is calculated based on the information you provide in your FAFSA—the Free Application for Federal Student Aid. This includes:
The exact formula isn’t public, but the Department of Education uses your inputs to determine your SAI. A lower SAI indicates higher financial need.
Unlike the EFC, the SAI takes into account a broader set of financial indicators and uses updated income protection allowances—meaning it more accurately reflects a family’s ability to pay for college.
Your SAI directly influences how much need-based aid you qualify for. Colleges use the following formula:
Cost of Attendance – Student Aid Index = Financial Need
So if your school’s Cost of Attendance (tuition, housing, meals, fees, books, etc.) is $40,000, and your SAI is $3,000, your financial need is $37,000.
Unlike the EFC, which could not go below zero, the SAI can go as low as –$1,500. That’s important for the most financially at-risk students, as it allows them to qualify for more grant money and federal aid. This negative range helps schools better serve students with the greatest need, especially at lower-cost institutions or community colleges where that extra aid may cover nearly all costs.
Even if your SAI is higher than expected—or if you don’t qualify for Pell Grants or other need-based aid—there are still plenty of ways to reduce your college costs.
Even if your SAI is too high for need-based aid, that doesn’t mean college has to be expensive. It just means you need a smart strategy—and we can help with that.
To receive an SAI and be considered for aid, you must submit the FAFSA.
Use your 2024 tax return to complete the FAFSA for the 2026–2027 school year.
After submitting the FAFSA, you’ll receive a Student Aid Report (SAR)—this is where your SAI will be listed. If any information is missing or needs to be corrected, you’ll be able to fix it and resubmit. Make sure to review your SAI and check that everything looks accurate. If your financial situation has changed since the tax year used on the FAFSA, you can request a professional judgment appeal from your school’s financial aid office.
The Student Aid Index (SAI) isn’t just a replacement for the EFC—it’s a modernized, student-centered tool designed to make the financial aid process more equitable and easier to navigate. It helps determine how much aid you’re eligible to receive, but it doesn’t tell the whole story. That’s why it’s so important to look at your entire financial aid offer, compare net prices from different colleges, and keep applying for scholarships and grants—even after you get your aid package.
Your SAI may seem like just another number, but it can have a huge impact on how affordable college is for you. The lower your SAI, the greater your financial need—and the more aid you may qualify for. But regardless of your SAI, every student benefits from careful planning, budgeting, and exploring all their funding options.
✅ What aid you’re offered
✅ What scholarships you earn
✅ What school you attend
✅ And how well you plan ahead
👉 Click here to join and take control of your college funding strategy today—because smart financial planning doesn’t just save money, it opens doors to the education and future you’ve been working so hard for.
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