Student Aid Index (SAI) vs. EFC: Key Changes to Financial Aid Calculations

The Student Aid Index (SAI) is a term you'll find on the recently overhauled Free Application for Federal Student Aid (FAFSA). It replaced the Expected Family Contribution (EFC) as part of the 2021 FAFSA Simplification Act, and first appeared on the 2024-25 FAFSA.

The SAI is a number the FAFSA calculates to determine your eligibility for federal financial aid, including Pell Grants, student loans, and the work-study program. Knowing your SAI can help you understand your need for financial aid and compare schools' financial aid offers when you receive them.

Here's what to understand about the SAI and how it compares to the EFC.

What is the Student Aid Index (SAI)?

The SAI is a number that represents how much financial aid you're eligible to receive. The FAFSA generates your SAI using a few factors, including student income and assets, family income and assets if you're a dependent student, and household size. Possible SAI numbers range from -1500 to 999999, with a negative SAI representing the highest need. An SAI at 0 or below triggers the maximum Pell Grant and other federal financial aid.

“Broad-brush, the lower your SAI number is, the more likely you may be to get a substantial award,” says Kim Nauer, founder of UnderstandingFAFSA.org and a higher education expert at the Center for New York City Affairs at The New School.

Even if you think you won't qualify for need-based aid, it's worth filling out the FAFSA. You don't know what you might qualify for.

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What was the Expected Family Contribution (EFC)?

The Expected Family Contribution was an earlier version of the SAI. The EFC terminology confused many FAFSA applicants, who widely assumed their EFC was the amount they would pay for college, though it was never intended to be an estimate of what a student would pay.

“One of the reasons the FAFSA moved to the SAI terminology was that many families were angry and surprised when their financial aid offers came back and their expected contribution was much larger than their stated EFC,” says Paul Martin, a private college counselor focused on financial planning and founder of the College Money Method.

Unfortunately, families are still confused about how financial aid is determined even with the simplified FAFSA and shift to the SAI, Martin says.

Key differences between the SAI and EFC

The overhauled FAFSA uses a new formula to calculate your SAI. For some families, the SAI affects aid by providing a more accurate representation of their financial need and expanding eligibility for aid, while for others the new formula means less eligibility.

Some key ways the SAI differs from the EFC are:

• Recognizes wider range of financial need: The possibility for a negative SAI enables colleges to distinguish between students with need and students with very high need to more precisely target financial aid.
• Increases the income protection allowance: The new formula shields a greater amount of parental income from the calculation, especially for single parents, and it also protects a certain amount of student income. Depending on other factors like your assets, the allowance could mean a lower SAI for you.
• Increases income threshold for reporting assets: In most cases, earning $60,000 or less means you won't need to report assets on the FAFSA, which is good for your SAI.
• Reduced untaxed income reporting: A reduction in untaxed income that must be reported on the FAFSA could lower your SAI.
• Less aid if you have siblings in college: Families with more than one child in college will likely see less financial aid per student. Each student receives their own SAI, and it's no longer reduced if you have siblings in college, the way the EFC was calculated.
• Cash support and grandparent 529 accounts no longer reported: Grandparent-owned 529 plans and cash gifts from relatives no longer need to be reported on the FAFSA. Previously, they were reported as student income. Sibling 529 accounts also don't need to be reported.
• Divorced/separated parent change: Previously, the parent with whom the student lived more than 50% of the time filled out the FAFSA using their income. Now, it's the parent who provides the most financial support. The effect on the SAI varies, and the change is confusing to families, Martin says.

How the SAI affects financial aid eligibility

Each college that accepts you will use your SAI to create a financial aid package that includes aid you may be eligible for. That might include a Pell Grant, state aid, institutional aid, work-study, and federal student loans. Merit scholarships may be offered as well, but these aren't based on your SAI, Martin says.

For 2024-25, it was estimated that about 10% more students qualified for a Pell Grant with the updated formula, meeting an important goal for the U.S. Department of Education.

However, even a very low SAI doesn't guarantee being awarded enough financial aid to cover your demonstrated need. You're entitled to a Pell Grant or other federal aid if you qualify, but you might not be awarded state or institutional aid on top of that. State and college budgets vary widely. In other words, you could still be left with a large gap to cover through other means.

Tips for navigating the transition from the EFC to SAI

Understanding your SAI in advance helps you shop for affordable colleges. One tool you can use to estimate your SAI if you haven't already filled out the FAFSA is the federal Student Aid Estimator, Nauer says. Knowing your estimated SAI can give you an idea of how much financial need you have.

Once you have an idea of your SAI, use college net price calculators to see how much money a particular college might offer, Nauer says. Every school is required to post one on its website.

Financial aid offices determine your need by subtracting your SAI from their school's cost of attendance (COA). They convert your SAI into a dollar figure to do that. The calculation looks like this:

COA - SAI = Financial Need

Example: $63,000 COA - 13500 SAI = $49,500 in need

If the projected net price at a particular college doesn't come close to meeting your demonstrated need with institutional aid or scholarships, you don't necessarily have to rule it out, but do keep shopping. The goal is to have some colleges on your list that won't require overborrowing. Maintain an open mind until you have all your financial aid offers in hand.