Student Aid Index is the number calculated from FAFSA data that indicates a student’s approximate financial strength and is used to determine eligibility for need-based federal aid.
How it is measured
The Department of Education applies a statutory formula to the income, assets, family size, and other data reported on the FAFSA. The resulting index is sent to the institutions the student lists. Each institution subtracts the index from its cost of attendance to estimate financial need, then packages aid accordingly.
Example: a student has a Student Aid Index of 0 and the institution’s cost of attendance is $25,000. Estimated need is $25,000. The student is eligible for the maximum Pell Grant (subject to enrollment intensity and other rules) and may receive additional need-based aid up to the remaining need.
How it differs
Cost of attendance is the institution’s price estimate. Net price is what aided students actually paid after grants. The old Expected Family Contribution used a different formula and could not be negative. The Student Aid Index is an eligibility metric, not a measure of the student’s later earnings or debt.
Common errors
Treating the Student Aid Index as the amount the family must pay out of pocket. Assuming a zero or negative index guarantees a full-ride package. Using an index calculated under the old EFC rules for a current award year.
References
- 1. FAFSA Simplification Act Student Aid IndexReplacement for Expected Family Contribution
- 2. Federal Student Aid SAI methodologyCalculation from FAFSA data
Student Aid Index is the number calculated from FAFSA data that indicates a student’s approximate financial strength and is used to determine eligibility for need-based federal aid.