Student Aid Index (SAI) vs. EFC: What’s the difference?

Expected Family Contribution (EFC) has long been the standard measure used to determine a student's eligibility for financial aid, but starting with the 2024-25 academic year, it is being replaced by the Student Aid Index (SAI).

Contrary to popular belief, the EFC didn't represent the actual amount your family was expected to pay for college. Instead, it was an index number derived from the information you provided on the Free Application for Federal Student Aid (FAFSA). Schools used this number to assess how much aid you were eligible for. 

With the introduction of the SAI, there are significant changes on the horizon. This guide covers key differences between EFC and SAI, why the switch is being made, and how it will impact your eligibility for student aid.

What is EFC?

If you need financial aid for college, you must complete the Free Application for Federal Student Aid (FAFSA). This form collects financial details about you and, if you're a dependent student, your parents.

The information on the FAFSA was previously used to calculate an Expected Family Contribution, or EFC. This was an index number based on a formula that considered:

• Your family's taxable and nontaxable income
• Government benefits like Social Security or unemployment
• Your assets and your family's assets

For the 2023-24 academic year and earlier, your EFC was reported on your Student Aid Report. Schools you applied to also received your EFC to help determine your financial aid eligibility.

However, starting with the 2024-25 FAFSA, the EFC has been replaced by the Student Aid Index (SAI). This change was ushered in under the FAFSA Simplification Act, which was passed by Congress on December 27, 2020 as part of the Consolidated Appropriations Act.

What is SAI?

The FAFSA Simplification Act replaced the Expected Family Contribution (EFC) with the Student Aid Index (SAI). The SAI is an index number calculated to determine your financial aid eligibility using a streamlined formula that considers income, assets, and other financial factors. The switch to SAI was made to:

• Reduce confusion, as many families mistakenly believed EFC was the amount they were expected to contribute.
• Simplify the process, with SAI requiring fewer questions on the FAFSA and allowing students to import more information directly from federal tax returns.

Your SAI ranges from -1500 to 999999. This number isn't a final financial aid offer, nor is it the amount your family is expected to pay or the amount of aid you'll receive. Instead, schools use this number to calculate your financial aid award.

A lower SAI indicates a higher financial need, potentially qualifying you for more financial aid. For example, an SAI of -1500 typically means you're eligible for the maximum Pell Grant award, provided you meet the student loan eligibility requirements and haven't reached the lifetime limit for the grant.

After completing your FAFSA, your SAI will be displayed on your FAFSA Submission Summary. To find it, log into your StudentAid.gov account, click on your processed FAFSA submission, and select "View FAFSA Submission Summary." Then, go to the "Eligibility Overview" tab to see your SAI.

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EFC vs. SAI

EFC and SAI are both indexes that schools use to determine financial aid awards. Starting in the 2024-25 academic year, SAI replaces EFC.

Here are the key differences between them:

• Scoring scale: SAI allows for negative scores, with the lowest possible being -1500, while the minimum EFC was 0.
• Asset exclusions: SAI eliminates the small business and family farm exclusions that EFC had, meaning these assets are now considered in the financial aid calculation.
• Number of children in college: SAI no longer accounts for multiple children in college at the same time, whereas EFC did.
• Simplified process: SAI has fewer factors and steps, with most information imported directly from IRS returns. This simplification reduces errors and makes the process more straightforward.

Calculating your SAI

The FAFSA can import information directly from the IRS with your permission, and this data is used to calculate your Student Aid Index (SAI).

There are three formulas for calculating SAI:

• Formula A: For dependent students
• Formula B: For independent students without dependents (other than a spouse)
• Formula C: For independent students with dependents (other than a spouse)

The specific formula is complicated, with a 49 page guide published to detail the specific steps involved. Some students, such as those whose parents don't earn enough to file a tax return, automatically receive an SAI of -1500. However, for most students, the calculation involves several steps including:

• Calculating total parental and student income, minus offsets and allowances for payroll and income taxes.
• Calculating parental and student assets, minus asset protection allowances.
• Determining a set amount of assets and income that parents and students are expected to contribute towards college costs.

The good news is, you don't need to manually calculate your SAI. In fact, for most students, the best and easiest approach is to use the Federal Student Aid Estimator that provides an estimate of your SAI and of the financial aid you are likely eligible to receive.

How SAI affects your financial aid package

Your SAI is a key determining factor in your financial aid package. Schools use your SAI to assess your eligibility for need-based aid through the following steps:

• Determining the total Cost of Attendance (COA): This includes expenses like tuition, fees, room and board, books, supplies, and transportation.
• Subtracting your SAI from the COA: The result is your demonstrated financial need.

The lower your SAI, the higher your demonstrated financial need, and the more need-based financial aid you'll likely receive.

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FAQ

What does SAI mean on FAFSA?

SAI stands for Student Aid Index. It replaced Expected Family Contribution (EFC) starting with the 2024-25 award year and it's used by your school to determine the amount of financial aid you're eligible for.

Is EFC the same as SAI for financial aid?

No, while both EFC and SAI are used to calculate financial aid, there are key differences. SAI uses a simplified formula and no longer considers the number of children parents have in college at the same time.

Is a lower SAI better?

A lower SAI simply means you need more financial aid for college. It can result in a higher amount of need-based financial aid, helping you pay for college.

What does a high SAI number mean for financial aid?

A high SAI number means you qualify for less financial aid. A lower SAI results in a larger financial aid award.

What is the highest SAI for FAFSA?

The SAI scale runs from -1500 to 999999.

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