Are you ready to apply for aid to fund your college education from the Governement?
You need to know and understand how the Student Aid Index, SAI is calculated, how it works and what changes have been made for the 2024-25 academic year.
What is the Student Aid Index?
The Student Aid Index (SAI) is a new calculation introduced by FAFSA for the 2024-25 academic year.
It replaces the Expected Family Contribution (EFC) and determines a family’s ability to pay for college.
Colleges use the SAI to assess need-based financial aid eligibility.
Calculating the Student Aid Index
The SAI is determined by factors such as family size, parental marital status, state of residence, and financial inputs.
These inputs include parent income and assets, student income, and student assets.
Notably, the number of students in college no longer affects the SAI calculation.
For the 2024-25 academic year, several changes have been made to the SAI calculation:
Parent Income: FAFSA will now rely on 2022 federal tax returns for all parent income. Pre-tax contributions to employer retirement plans will no longer be counted as part of parent income.
Parent Assets: All assets owned by parents outside of retirement accounts, primary homes, and life insurance policies will be included in the calculation. Additionally, child support received, and the net worth of businesses or farms will be counted as parent assets.
Student Income: Students will receive income protection equal to $11,130. Any income earned beyond this amount will be subject to a contribution rate of 50%.
Student Assets: All assets held by students outside of retirement accounts will be reported. The contribution rate for student assets is 20% of every dollar.
Using the Calculator
To determine your SAI, you can use the updated calculator provided. Input your financial information as requested, and the calculator will generate your SAI for the 2024-25 academic year.