What Is a High Student Aid Index (SAI) and What Does It Mean?

The average cost of tuition and fees in the 2024-25 school year was $11,610 at public, in-state four-year schools, and $43,350 at private four-year schools, according to the College Board. For most students, that makes applying for financial aid with the Free Application for Federal Student Aid (FAFSA) a necessity.

If you're one of the millions of students who complete the FAFSA each year, you'll receive a Student Aid Index (SAI). This article will help you understand what a high Student Aid Index means and how it affects your eligibility for aid.

What is the Student Aid Index (SAI)?

The Student Aid Index (SAI) is a numerical representation of a student's financial need. It helps the college or university of your choice determine if you're eligible for Pell Grants and other financial aid.

Your SAI is determined by the information you, along with your parents or guardians (if applicable), provide on the FAFSA. After the FAFSA is complete, you'll be assigned an SAI between -1,500 and 999,999. Lower SAIs translate to higher financial need.

The SAI replaced the Expected Family Contribution (EFC) as part of the FAFSA Simplification Act and was first used during the 2024-25 award year.

“The new formula expanded access to federal aid and increased the number of students eligible for Pell Grants,” says Bethany Coleman, vice president of public relations, communications, and marketing in the Office of Public Information at the Pennsylvania Higher Education Assistance Agency.

However, Coleman also cited potential adverse effects, which we'll highlight below.

Current private student loan rates

What does a high Student Aid Index mean?

Generally speaking, a high Student Aid Index indicates a lower need for financial aid, based on the assumption that the student and/or their parents can cover the cost of tuition and related expenses.

If you have a higher SAI, you may find you're eligible for less aid (or no aid). A negative SAI means you have a greater need for aid, but there's no specific number that designates the threshold between high and low. And a high SAI at one school may not be considered so at another university.

Barbara Schmitt, director of financial aid at King's College, notes that “the SAI, just like the EFC, is the one number that comes out when you do your FAFSA,” adding, "it doesn't matter if you go to a local community college or Ivy League school, that SAI stays the same."

To show why this matters, Schmitt used an example of a student with a 15,000 SAI.

“If they go to their local community college, which has a lower tuition, they may only be eligible for student loans. They may not be eligible for federal Pell Grants and they may or may not be eligible for state grants,” she says. But she highlights the fact that if they go to a higher-priced school, “that would be considered a low SAI because it depends upon the cost of attendance.”

In other words, you may find that an SAI that bars you from receiving aid at one school meets the eligibility requirements for grants or institutionally backed aid at another school.

The SAI and federal student loan eligibility

It's important to keep in mind that there's more to a school's aid package than SAI-driven grants and scholarships. Depending on your financial circumstances, you may also be eligible for subsidized federal student loans.

There's an indirect relationship between the two, however. Schmitt offers another example:

“Let's say the tuition at a specific school is $60,000, and a student has a 30,000 SAI and is eligible for a $27,000 scholarship,” she says. “The $27,000 is deducted from the 30,000 SAI, leaving a need of $3,000. If the student received another scholarship for $1,000, the total need would be reduced to $2,000.”

“The maximum federal loan amount (subsidized or not) a dependent freshman can get is $5,500 combined,” she notes. “The most out of that $5,500 that can be subsidized is $3,500. In this scenario, the student is only eligible for $2,000 of a subsidized loan and not the full $3,500,” says Schmitt.

How is the Student Aid Index calculated?

The SAI is based on information from the FAFSA, which includes information about both the student and their parents, also referred to as “contributors.” Primarily, this information includes:

• Student and contributor tax returns
• Student and contributor Social Security numbers
• Cash and account balances, including checking and savings accounts
• Net worth of any investments and bank statements
• Any untaxed income
• Household size

Note that in the case of divorce, financial information about a parent's spouse may also be included in the calculation.

Further, Schmitt notes that in some cases, the new SAI calculation also changes who's defined as the contributing parent. This is particularly true for parents who are divorced or not married and living in separate houses where one parent contributes more financial support, such as through child support, than the other.

“It's not the custodial parent like it used to be. It's the parent who provides the most support,” she notes. If you're unsure which parent is the contributor, Schmitt suggests using the “Who counts as a parent on the FAFSA form?” tool available on StudentAid.gov.

Once financial resources are tallied, annual living expenses are deducted, and the remaining balance is considered the amount of money a family can reasonably contribute to higher education costs.

What to do if you have a high SAI and need more aid

If your SAI is too high and you need more aid, there are a few things you can do.

Ensure FAFSA information accurately reflects current finances

Schmitt notes that SAI is based upon income from two years prior. For instance, if you're filling out a FAFSA for the 2025-26 school year, the information used to determine the SAI is based on the 2023 tax year.

“A lot can change in two years,” she adds.

File an appeal

If you feel your SAI does not accurately reflect your need, you can file an appeal with the school you plan to attend.

Common reasons to file an appeal may include:

• Death of a parent
• Job loss or job change that resulted in lower income
• A natural disaster that led to the loss of a home
• Divorce or loss of child support
• Increased family size

Schmitt points to those situations as conditions under which your school can make a “professional judgment decision” about your SAI and your current family circumstances.

“If a family's circumstances have changed, even if they're not sure how dramatically [they] changed or if the change will make any difference for them, they should always reach out to the financial aid office at their school,” she recommends.

If approved, the school can update the FAFSA figures on your behalf, noting that the federal government should base your financial need on the most current figures rather than those that were automatically leveraged when you filed the FAFSA.

Schmitt is also quick to point out that families should go directly to the school and not the Department of Education, as once the SAI is determined, the school is your only line of defense at that point.

Apply for scholarships and grants

Need-based grants and scholarships can help take the financial burden off of families trying to cover the cost of higher education, but they aren't the only options.

“Students should explore other non-need-based aid types like merit-based scholarships,” recommends Coleman. “We always stress FREE MONEY FIRST!”

Merit-based scholarships, such as those for academic, athletic, or artistic excellence, are one way to pay for school, but there are plenty of other scholarships for college, too. Students may be eligible for scholarships based on where they live, organizations they or a parent are members of, degree paths they choose, or even hobbies they pursue.

To find scholarships, you should check with your high school's guidance office and your college or university of choice, as well as local businesses and organizations, and online databases.

Consider federal student loans

Students with a high SAI may not be eligible for subsidized federal student loans, or their eligibility may not meet their total need. However, unsubsidized federal loans are not need-dependent, so you should explore your other federal loan options to determine if one makes sense.

Explore private student loan options

If you've exhausted all options and federal loans won't cover all of your expenses, consider looking for private student loans. Private loans aren't need-based and are offered by banks, credit unions, and other financial institutions.

Keep in mind that private loans vary by lender, with each setting offering products with different rates, terms, and eligibility requirements. Always review your options and compare lenders to find the best private student loan for your needs.

Student Aid Index vs. Expected Family Contribution (EFC)

The SAI, like the previously used EFC, is designed to determine a family's financial need as it relates to higher education. And in many cases, the factors used for each are similar. However, there are a few key differences.

Some of the most notable differences between the SAI and EFC include:

• SAI no longer factors in the number of children in college: “Having multiple students in college at the same time is no longer considered in the federal need analysis formula,” says Coleman.
• The new formula reflects high need with negative numbers: Previously, the lowest level of need was 0, but SAIs can be as low as -1,500, which can help identify students with the most significant level of financial need.
• Family-owned businesses and farms are included as assets: The EFC did not previously include the net worth of a family-owned business if it had fewer than 100 full-time employees. Family farms were also excluded. The SAI includes both assets, which can increase a student's SAI.
• Reporting parent rules have changed: In the past, in instances where the child's parents lived separately, the custodial parent was the one who filed the FAFSA. Now, the responsibility falls to the parent who provides the most financial support.
• Child support is considered an asset: Previously, child support was considered income. Under the new FAFSA rules, it is considered an asset, which can affect a student's SAI.