The Student Aid Index (SAI) replaces Expected Family Contribution (EFC) as a measure of a family’s ability to contribute towards a student’s postsecondary educa...
The Student Aid Index (SAI) replaces Expected Family Contribution (EFC) as a measure of a family’s ability to contribute towards a student’s postsecondary education and cost of attendance (COA) for an award year, calculated according to a formula established by law. It is one component of the need formula: COA –SAI= Financial need. The need analysis formula, which is defined in law by Congress, considers a student and family's income and asset information, as well as family size. The need analysis formula also removes the number of family members in college from consideration and allows a minimum SAI as low as -1,500. It also implements separate eligibility criteria for the Federal Pell Grant program that considers a family’s financial standing according to the federal poverty guidelines.
The law prohibits ED from regulating any aspect of need analysis, including expected family contribution. See Subtopics for other related regulations.
Related terms: Need Analysis; Cost of Attendance; Pell Grant; Professional Judgment
The Student Aid Index (SAI) replaces Expected Family Contribution (EFC) as a measure of a family’s ability to contribute towards a student’s postsecondary education and cost of attendance (COA) for an award year, calculated according to a formula established by law. It is one component of the need formula: COA –SAI= Financial need. The need analysis formula, which is defined in law by Congress, considers a student and family's income and asset information, as well as family size. The need analysis formula also removes the number of family members in college from consideration and allows a minimum SAI as low as -1,500. It also implements separate eligibility criteria for the Federal Pell Grant program that considers a family’s financial standing according to the federal poverty guidelines.
The law prohibits ED from regulating any aspect of need analysis, including expected family contribution. See Subtopics for other related regulations.
Related terms: Need Analysis; Cost of Attendance; Pell Grant; Professional Judgment
Effective with the 2024-25 award year, Expected Family Contribution (EFC) becomes the Student Aid Index (SAI). The EFC was a measure of a family’s ability to contribute towards a student’s cost of attendance (COA), calculated according to a formula established by law. It is more of a rationing tool that compares the relative financial strengths of all families applying for aid. It is one component of the need formula: COA – EFC = Financial need. The EFC formula, which is defined in law by Congress, considers a family's taxed and untaxed income, assets, size and the number of family members who will attend college during the year.
See also Subtopics for more specific references.
(National Center for Homeless Education)
(National Association of Student Financial Aid Administrators)
(The Hope Center)
See Data elements used in SAI determinations; Formula A - Dependent student; Formula B – Independent student without dependents; Formula C - Independent student with dependents