How FAFSA calculates your SAI
A key part of qualifying for need-based financial aid for college is to determine your Student Aid Index, or SAI. This number is calculated when you complete your Free Application for Federal Student Aid (FAFSA).
The SAI was introduced for the 2024-2025 school year and replaces the previous Expected Family Contribution (EFC).
The lower your SAI, the less you are expected to pay for college. Most colleges will use the SAI as the amount you will be able to pay each year. They will subtract this from the total cost of attendance and offer need-based aid to cover at least some of the difference. (Some schools base this number on the College Scholarship Service (CSS) Profile instead of the FAFSA’s SAI.)
Note that this information assumes a student is a dependent, and calculations for single-parent households can differ.
The two key components of SAI
SAI assumes both the parents and the student will contribute a portion of their income and assets to pay for college.
Parent contribution
The SAI takes into consideration the parent’s income and assets, allowing for some offsets. The idea is that parents will contribute a portion of their annual income after general expenses, plus a portion of their assets, to pay for college each year.
To calculate the parent’s income, SAI starts with the adjusted gross income and adds back some items, such as deductible payments to IRAs. Then, it subtracts some offsets and allowances.
The key allowance is the Income Protection Allowance (IPA). This allowance accounts for some of the basic costs of living, such as housing and food, that cannot be expected to be used to pay for college.
IPA is based on the number of people in the family. If it’s just two people (including the student), the allowance is $27,600 for 2024-2025. A family of six can deduct $58,560. Larger families get an additional $6,610 allowance for each family member.
This provides the amount the SAI suggests the family should be able to pay for the year.
But wait — there’s more. The SAI also takes into consideration a family’s assets. It assumes it can contribute 12% of the value of these assets every year.
This includes cash, savings accounts, investments, and even a portion of the value of a business owned by the family. (The 2024-2025 calculation expanded the inclusion of business value to all businesses, not just larger ones.)
The total parent contribution is the amount available to pay from income plus 12% of the assets.
Student contribution
If the parent contribution is less than the total cost of attending the school, the student contribution must be added.
The income calculation is very similar to the parent’s calculation. For all students, the Income Protection Allowance is fixed at $11,130. So students with part-time income are unlikely to have to contribute much, according to the SAI calculation.
However, SAI assumes students can pay a higher portion of their assets toward school each year: 20%. So, if a student has $30,000 of savings, they will be expected to contribute $6,000 for the year.
What the number means
Add the parent’s contribution with the students, and the result is the SAI.
According to StudentAid.gov, “This number is not a dollar amount of aid eligibility or what your family is expected to provide.” The number is technically an index, not a dollar amount.
At the same time, the website also states that colleges will deduct the SAI from the cost of attendance to determine your financial need. So essentially, it is a dollar amount. (An exception is if the SAI is negative; it can go as low as -$1,500, suggesting the highest amount of need.)
It’s important to note that your SAI can (and likely will) change each year. If your family’s income and assets go down, you might qualify for more aid. If they increase, you might be asked to pay more for college. Filling out the FAFSA is a recurring process through all years of college, so your payments will change with your financial situation.
Also, just because your SAI is less than a school’s cost of attendance doesn’t mean you’ll get the difference as a gift. Some schools will expect the student or parents to take out loans or for the student to work to earn some of the difference.
Finally, some schools will give greater need-based aid than what the SAI suggests.
Frequently asked questions about SAI
Does the SAI take into consideration if I have multiple students in college?
Unfortunately, no. The old Expected Family Contribution considered this, but the Student Aid Index does not. This can be especially difficult for families with multiple children in school; the total that schools suggest they can contribute might be greater than their annual income plus a share of assets.
How long does it take to complete the FAFSA?
It should take about an hour, but many people report it taking longer. There were multiple technical issues during the rollout for the 2024-2025 financial aid year. Eligible noncitizens should expect to spend longer.
How does the FAFSA compare to the CSS Profile?
Some colleges require students to complete the CSS Profile to be eligible for aid. The CSS Profile is generally considered more in-depth than the FAFSA.
I’m living in the U.S., but I’m not a citizen. Can I complete the FAFSA?
FAFSA has a list of eligibility requirements on its page, but the short answer is: it depends. If you are a U.S. National (from American Samoa or Swains Island), or have a green card, you can file for FAFSA. If your green card has expired, but your legal permanent residence status has not expired, you can still file. Request a new green card as soon as possible, and be ready to contact the financial aid office at your school.
If you are a refugee, have had asylum granted, or parolee, you can present an official arrival-departure record when filing. Citizens of Micronesia, Republic of Marshall Islands, or Republic of Palau are also eligible.
Undocumented DACA students are not eligible to receive federal student aid. However, you can still fill out the FAFSA to submit for schools/scholarships. These institutions can use your SAI to offer their own aid.