The Student Aid Index, or SAI, is the number colleges use to determine how much financial aid you’re eligible for based on the information you provide on your Free Application for Federal Student Aid (FAFSA). Here’s a rundown of how the SAI works and why it matters for students and families trying to pay for college.
Understanding the Student Aid Index
The Student Aid Index is an eligibility index number. Colleges that you apply to use this number to calculate how much financial aid you might be eligible to receive.
When filling out the FAFSA (Free Application for Federal Student Aid), you are required to enter details about your family financial and personal circumstances. On submitting the completed FAFSA, the government uses your answers to calculate your Student Aid Index. This number is different for every student.
Your completed FAFSA is sent to all colleges listed on the application. These colleges use the information on the form to estimate how much financial help you might need to afford their tuition and other costs.
How the SAI is Calculated
The details on the FAFSA are key to determining your Student Aid Index. Once you submit your FAFSA, a federal formula is used to calculate your Student Aid Index. The formula is complex, but the basic information used in the calculation include:
- Family income –both parent’s and student’s income
- Assets – savings, investments, and other financial holdings
- Family size – the number of people in the household
You are required to enter this information when you file the FAFSA. All students who submit the FAFSA receive a FAFSA Submission Summary (formerly known as Student Aid Report or SAR) with details of their Student Aid Index.
After your application is processed and your Student Aid Index calculated, the federal government sends it to the colleges listed on your FAFSA. All schools that participate in federal student aid programs use the SAI. However, some private colleges may also require the CSS Profile, which digs deeper into financial
How Schools Use the Student Aid Index
The Student Aid Index, as mentioned before, helps schools determine how much financial assistance a student will be eligible for.
Colleges use a simple formula to determine your financial need:
- Cost of Attendance (COA) – Student Aid Index (SAI) = Financial Need
The Cost of Attendance includes tuition, fees, housing, meals, books, transportation, and personal expenses for that particular college.
Let’s say a college’s COA is $30,000 and your SAI is $2,000.
In this case, your financial need is $30,000 – $2,000 = $28,000. Most schools will award you a combination of grants, scholarships, work-study, and loans to help cover that gap.
It’s important to understand a couple of things when calculating your SAI:
- Your financial need calculation may vary from one college to another depending on that school’s cost of attendance.
- Your SAI doesn’t guarantee how much aid you’ll receive from any college. It just helps colleges figure out what kind of aid package to offer.
- Colleges can’t always meet 100% of your financial need. Some schools may offer more aid than others, so it’s worth comparing offers and asking questions before choosing which college to attend.
- A higher SAI means you may qualify for less aid because it suggests your family has more ability to pay for college. A low SAI means you’ll likely qualify for more need-based financial aid. A negative SAI indicates you have higher financial need.
Where to Find Your Student Aid Index
Once you submit the FAFSA, you’ll receive a FAFSA Submission Summary after about one to three business days. This Summary offers a broad overview of your financial aid. It includes details about the schools you’re considering as well as your SAI or eligibility for the coming award year. You can also log into your FAFSA account at studentaid.gov to view it.
Remember, your SAI can change from one year to the next. You have to file the FAFSA for every academic year and it is valid for one year only. Your SAI is recalculated each time you submit a new FAFSA. Any changes in income, assets, or household size can affect your aid eligibility. If your family or financial situation changes after submitting the FAFSA for that academic year, contact your college’s financial aid office. You can request a special circumstances review if you’ve experienced job loss, medical expenses, or other unexpected changes.
3 Tips To Maximize Your Financial Aid
These tips will help you get the maximum amount of financial aid you’re eligible for:
- Submit the FAFSA as soon as it opens to improve your chances of getting maximum aid. Financial aid is awarded on a first come first serve basis and the earmarked amount may be depleted if you wait too late.
- You will need to submit detailed information about your finances. Keeping these documents ready will help streamline the process and avoid delays – income statements, tax forms, and bank account details.
- You can list up to 20 colleges on your FAFSA. Make use of this and list the maximum number of colleges to ensure your information reaches all schools on your shortlist.
The Student Aid Index is a tool to help colleges figure out how much financial help a student might need to attend their school. Understanding how the Student Aid Index is calculated and how it works can make a big difference in how you plan and prepare for college costs.
For more information on financing your college education, read more informative articles and use the virtual tools available on the College Raptor website.
