What Is the Student Aid Index (SAI)?

The Student Aid Index (SAI) measures your financial situation, and colleges use this number to decide how much financial aid you can receive each academic year. You'll receive your SAI after you submit the Free Application for Federal Student Aid (FAFSA) each year. It's calculated based on factors like your income, assets, and family size.

Here's what you need to know about the SAI, including how it affects your financial aid eligibility and how it can change from year to year.

Current private student loan rates

What is the Student Aid Index (SAI)?

The Student Aid Index (SAI) is a number that helps schools assess how much financial aid you are eligible for. The SAI was introduced through the FAFSA Simplification Act as part of an effort to streamline the financial aid process. It replaces the Expected Family Contribution (EFC), shifting the focus from what your family is expected to pay to a more comprehensive view of your financial situation.

The financial aid office at your school uses your SAI to create your aid package. The formula accounts for both your financial resources and those of your parents (or spouse, if applicable), then subtracts what's needed for basic living expenses. What's left is used to help determine your eligibility for financial aid. SAI values can range from -1,500 to 999,999, with a lower SAI indicating greater financial need.

How is the SAI calculated?

Your Student Aid Index (SAI) is calculated using the information you provide on the FAFSA. Some of your tax data may be retrieved directly from the IRS if you authorize the transfer of this information. Otherwise, you'll have to enter your tax information manually.

The SAI formula considers several factors, including:

• Your parents' income: Certain credits and allowances, such as U.S. income taxes and protected income, may reduce your parents' total annual income. Basic living expenses are also deducted.
• Your parents' assets: These include savings, investments, real estate (excluding your primary home), and business assets.
• Spouse income and assets: If you're married, you'll report your spouse's income and assets instead of your parents' on the FAFSA.
• Student income: This includes your earnings, minus income offsets and tax allowances.
• Student assets: These cover cash, savings, checking accounts, certificates of deposit, and investment properties. Like parent assets, the value of your primary residence is excluded.
• Your family's size: While your family's size is considered, the number of family members in college is not.

Good to know: You can estimate your SAI and potential financial aid eligibility by entering your details into the Federal Student Aid Estimator tool.

How does the SAI affect financial aid eligibility?

Your school's financial aid office uses your Student Aid Index (SAI) to determine how much need-based aid you qualify for. They start by subtracting your SAI from the school's cost of attendance (COA), which includes expenses like tuition, fees, room and board, books, and transportation.

For example, if the COA is $15,000 and your SAI is $10,000, your financial need would be $5,000. You could then qualify for up to $5,000 in need-based aid, which may include:

• Federal grants
• Federal Direct Subsidized Loans
• Federal work-study program funds

After calculating your need-based aid, the school looks at non-need-based aid options. This is done by subtracting any financial aid you've already received from the total cost of attendance.

Continuing the example, if you've already been awarded $5,000 in need-based aid and earned a $3,000 private scholarship, you'd still be eligible for up to $7,000 in non-need-based aid to cover the remaining COA of $15,000. Non-need-based aid can include federal Direct Unsubsidized Loans, grad PLUS loans, and parent PLUS loans.

How to find your SAI

Your Student Aid Index will appear on your FAFSA Submission Summary. To find it, follow these steps:

1. Log in to your StudentAid.gov account.
2. Click on your processed FAFSA submission.
3. Select “View FAFSA Submission Summary.”
4. Select the “Eligibility Overview” tab.

Does your Student Aid Index change each year?

You must submit the FAFSA each year you want to apply for financial aid. Because your SAI is based in part on your family's assets and income from the tax year two years prior, it can change each year you're in school.

Some changes to your family's financial circumstances that could affect your Student Aid Index include:

• Loss of a job
• Death of a parent
• Increase in income (e.g., getting a raise)
• Divorce or separation
• Loss of property in a natural disaster
• Significant medical expenses