Wed, Jul 2, 2025 11:30 AM

Waiting too long to calculate your Federal SAI (Student Aid Index) can be one of the costliest mistakes a family makes in the college planning process. Your SAI is the starting dollar amount colleges use to determine what your family is expected to pay, whether your student attends a community college or an Ivy League school. And since some colleges leave a funding gap, meaning their financial aid package may fall short of your actual need, it’s critical to know this number early and plan ahead.

What many families don’t realize is that your Federal SAI is calculated using the tax return from two years before your student starts college. So, if your child is graduating high school in 2026, the income reported on your 2024 Federal Tax Return will be used to determine your SAI. That means any changes you’re hoping to make to reduce your SAI—such as lowering your taxable income—need to happen during your student’s freshman or sophomore year in high school. By the time senior year arrives, your income amounts are already locked in.

This is why I urge families to run their numbers now. Calculating your Federal SAI early gives you a realistic sense of what colleges are going to expect you to pay. It helps set expectations, prevents surprises, and gives you the opportunity to align your college list with your actual family budget. It’s never too early to do this. The sooner you know your SAI, the more time you have to prepare, adjust, and make smart financial decisions.

If you need help understanding your SAI or want guidance through the College Money Talk, I’m here for you. Schedule a free 15-minute Discovery Zoom Meeting with me today and let’s start building a plan that works for your family.

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