Understanding the Student Aid Index (SAI): A Key Component in College Financial Aid

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The Student Aid Index (SAI) plays a key role in determining the financial aid a student may receive for an academic year. Below, we answer some common questions regarding SAI and its significance in the financial aid process.

What is SAI?

The Student Aid Index, or SAI, is calculated when a student completes the Free Application for Federal Student Aid (FAFSA^®).  The SAI is used to assess a student’s financial need. It is calculated using information about the income and assets of the student, their parents, and, if applicable, the student’s spouse.

College and university financial aid offices utilize the SAI, along with other data you provide, to determine eligibility for various forms of financial assistance, including federal, state, and institutional grants, scholarships, work-study programs, and loans.

It’s important to note that the SAI does not directly represent:

• The exact amount of financial aid you will receive from any specific institution.
• The amount your family can contribute toward college expenses.
• The same figure across multiple institutions.
• Another student's SAI, even if they appear to be in a similar financial situation.

How is the SAI Calculated?

The SAI is determined by evaluating your family’s taxable and untaxed income, assets, and benefits (such as unemployment or Social Security benefits). This comprehensive assessment helps colleges estimate your financial need.

How is the SAI Communicated?

Each year, the U.S. Department of Education opens the Free Application for Federal Student Aid (FAFSA) to new and returning students who plan to attend college in the following academic year. After you submit the FAFSA and all necessary financial information, you will receive a FAFSA Submission Summary, which includes your SAI. The FAFSA can be completed in the fall before the academic year for which you plan to attend school.

How Can I Estimate My SAI?

To assist families in estimating their eligibility for federal student aid, the Federal Student Aid office provides an estimator tool. The FSA estimator can be found at https://studentaid.gov/aid-estimator/.  Additionally, many colleges offer net price calculators on their websites to help families predict the amount of aid they might receive. You can find these calculators by visiting the financial aid section of a college’s website or by checking the U.S. Department of Education’s net price calculator site. The Arkansas Student Loan Authority also has a college cost calculator.

When Should I Estimate the SAI?

Families can begin estimating the SAI as early as the student’s middle school years. This early assessment provides insight into current costs, available aid, and anticipated financial assistance. Since college funding and costs of attendance can change annually, revisiting the estimator over time can help families create a more accurate financial plan. High school juniors and seniors can also use these calculators to determine the affordability of specific colleges before applying.

Where Can I Find the Official Costs for a Specific College?

Colleges will send accepted students a financial aid offer in the spring before the new school year begins. This offer details the financial aid available to the student. 

Why Might the SAI Lead to a Higher Net Cost Than My Family Can Afford?

The tax information used to calculate the SAI is often from the "prior-prior" tax year. For instance, a student entering college in 2025 would provide tax information from 2023. If your family’s financial situation has significantly changed since that tax year, the SAI may not fully reflect your current circumstances. Additionally, the SAI might consider assets that your family cannot or is unwilling to liquidate for college expenses.

Can I Appeal the SAI?

If your family’s financial situation has changed since the applicable tax year or since completing the financial aid process, you can contact the financial aid office at the colleges you are considering attending to discuss possible next steps.

ASLA

ASLA College Planning Services is a state-wide college planning service created to assist Arkansas students in achieving their higher education goals. ASLA has several college planning aids and services that are provided to you for free. Our College Planning counselor can assist your family with determining your SAI and its impact on your college choices.