Do You Know What Your SAI/EFC Amount Is?

Wed, Apr 12, 2023 11:30 AM

Do you know what your SAI/EFC amount is? First, let’s define these acronyms: SAI is the NEW acronym for your Student Aid Index (determined by submitting the FAFSA) which is replacing the second acronym your EFC – Expected Family Contribution (which the CSS Profile Colleges will likely continue to use). For simplicity sake and to help you get used to the change that is happening from the Federal side this year – I am going to use SAI/EFC.

Many families do not realize how important knowing this dollar amount is and what it means. Your SAI/EFC is the amount your family is expected to pay for college each year and is determined by the Department of Education. The SAI/EFC amount is calculated using the parent’s Adjusted Gross Income and the value of non-retirement assets along with a student’s income and assets. The sad truth is many families never get around to calculating their SAI/EFC and when they finally do, are often shocked by the dollar amount that appears. Your SAI/EFC is the same whether your student applies to an Ivy League or Community College.

My advice, calculate your SAI/EFC – ASAP so you can plan accordingly and have open conversations with your daughter or son about how you are going to pay for college as a family. It is never too early to run this number and the sooner you do, the more likely you will have success in setting up a systematic plan to save and pay for some or all your child’s college education. If you have children who are already in high school, knowing your SAI/EFC will allow you to visit the right colleges at the right price that fit your family budget just right.

After you deal with the shock and awe that comes from seeing your SAI/EFC amount, remember that there is one person who can help reduce your this big dollar amount – your student. Have them apply to colleges that are going to reward them for their hard work with merit scholarships and colleges that fit your family’s budget. The good news is that most of the scholarships awarded by colleges are for 4 years, and students can pursue outside private scholarships as well to help with the cost – even after they are in college. Be sure to have your son or daughter apply for private scholarships and encourage them to talk to their school guidance counselor or college and career readiness coach for more opportunities.

Be sure to read this article from Kiplinger to learn more about some of the biggest changes that are coming to the FAFSA this year: CLICK HERE

The easiest way to calculate your SAI/EFC is to CLICK HERE and input your factual, academic, and financial details – and then Schedule a FREE 15-minute Discovery Zoom Meeting with me TODAY! so that I can help you understand what you are looking at.