What Is the Student Aid Index?
The Student Aid Index helps colleges determine how much financial aid you can get after filling out the FAFSA.
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Contributing Writer The Student Aid Index, or SAI, is a measure that colleges use to determine a student's ability to pay for school. It also determines the amount of financial aid students can receive.
Students receive an SAI after submitting the Free Application for Federal Student Aid (FAFSA).
How is the Student Aid Index calculated?
The index equals the sum of you and your parents’ (or spouse’s) total financial resources, minus annual living expenses.
The information you input on the FAFSA about you and your family’s financial profile determines your SAI. In most cases, the FAFSA automatically pulls this information from your tax return.
Once you submit the FAFSA and the Education Department processes the form, you’ll receive your FAFSA Submission Summary, which details the information you included on the application and your SAI.
Students must submit the FAFSA each year they are in school to unlock federal student loans, Pell Grants, work-study and even some private scholarships.
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How is the Student Aid Index used?
SAI is used as part of the equation for financial need. Financial aid officers subtract your SAI and other financial assistance from the cost of attendance. Your cost of attendance at a certain school includes tuition, fees and room and board.
The financial aid eligibility equation essentially looks like this: Cost of attendance – SAI = financial need
Your SAI can range from -1,500 to 999,999. A lower SAI indicates a higher level of financial need and makes it more likely that you'll qualify for financial aid, like the need-based Pell Grant.
For example, if your cost of attendance is $30,000 and your SAI is -$1,500, your estimated financial need would be $31,500.
Colleges aren’t required to meet 100% of your financial need, though some do. In addition to need-based aid like grants or scholarships, your financial aid package may also include federal student loans, which you repay in the future. Some types of aid, such as work-study, might also be limited at your school.
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