Understanding the Student Aid Index
How your FAFSA determines financial aid eligibility
EFC → SAI: What Changed?
Starting with the 2024-25 school year, the Expected Family Contribution (EFC) was replaced by the Student Aid Index (SAI). Key changes:
How SAI is Calculated
1. Parent Income Assessment
AGI minus income protection allowance (~$25K for one parent + ~$8K per additional family member). About 22-47% of remaining income assessed.
2. Parent Asset Assessment
Assets minus protection allowance (varies by age). About 5.64% of remaining assets assessed. Home equity and retirement excluded.
3. Student Contribution
50% of student income above ~$7,600 protection. 20% of student assets (no protection allowance for student assets).
4. Final SAI
Parent contribution + Student contribution = SAI. Can range from -$1,500 to over $100,000.
SAI and Pell Grant Eligibility
SAI ≤ 0
$7,895
Max Pell
SAI $2,000
$5,895
Estimated
SAI $5,000
$2,895
Estimated
SAI $7,895+
$0
No Pell
Tips to Maximize Aid
- • Minimize cash/investment accounts (pay down debt instead)
- • Maximize retirement contributions before filing
- • Keep assets in parent name, not student name
- • File FAFSA as early as possible (Oct 1)
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This is simplified information. See studentaid.gov for complete FAFSA details.