What is Your Student Aid Index (SAI) - I've Got the Best Tool to Calculate it

Wed, Apr 16, 2025 11:30 AM

Entering college is an exciting milestone, but for many students and families, the rising cost of higher education can feel overwhelming. Between tuition, room and board, textbooks, and other expenses, figuring out how to pay for college has become more important than ever. The most important item every family needs to calculate and understand when it comes to financial aid is what their family’s Student Aid Index (SAI) amount is.

The Student Aid Index, or SAI, is a dollar amount used by colleges and universities in the U.S. to assess a student’s eligibility for need-based financial aid. It replaced the Expected Family Contribution (EFC) in the FAFSA process and is now a core element in determining how much aid a student will receive. The SAI is calculated based on your family’s financial situation—including parent and students income and assets, family size, and how many people in your household are attending college at the same time.

The lower your SAI, the more need-based financial aid you’re likely to qualify for.
While the formula behind the SAI can seem complex, understanding the process can make it more approachable. Start by gathering financial documents like tax returns, W-2s, bank statements, and records of additional income or assets. Then complete the FAFSA at https://studentaid.gov which collects both student and parent information to determine your eligibility for federal aid programs. Once submitted, you’ll receive a FAFSA Submission Summary email that includes your calculated SAI and lists any Federal Financial Aid Benefits your student is eligible to receive.

Each college that receives Federal Financial Aid is required to publish the Cost of Attendance (COA) for their college, which includes tuition, fees, housing, meals, books, and other personal expenses, on their website. Financial need is determined by subtracting your SAI from the COA. If your SAI is higher than the COA, you may not qualify for need-based aid, but you are still eligible for federal student loans if you submitted the FAFSA.

Understanding your SAI gives you a powerful starting point in the financial aid process. It can help you explore all your financial aid options—federal, state, institutional, and private. You can also compare schools strategically, as some may offer more generous aid packages than others. Be sure to look for outside scholarships and grants from local organizations, nonprofits, and national databases. You may also want to consider work-study programs, which provide part-time jobs on campus to help cover personal expenses.

If you do need to take out loans, be sure to borrow responsibly. Federal loans may offer better repayment options and protections against death or disability than private loans, so always explore those first and do your research to know what you are signing up for.
The financial aid process doesn’t have to be overwhelming. Understanding your Student Aid Index is the first step toward making college affordable and achievable. At College and Beyond LLC, we specialize in helping families make sense of their SAI, FAFSA, scholarships, and the entire college financial aid process. Contact us today to schedule a FREE Discovery Meeting and see if we can help you make your students dreams come true. By taking action today – success can be achieved!