College Counseling Blog | The Dunham School | Private PreK-12 | Baton Rouge, LA

Understanding the SAI: The "Magic Number" of Financial Aid

February 2026

If you are filling out the FAFSA (Free Application for Federal Student Aid) this year, you’ve likely seen the term SAI popping up. It has replaced the old "Expected Family Contribution" (EFC) as the primary metric for determining your financial aid eligibility.

But what exactly is it, and how does it affect your college bill?

What is the Student Aid Index (SAI)?

The Student Aid Index (SAI) is an eligibility index number ranging from 1,500 to 999,999. It is calculated based on the financial information you provide on the FAFSA.

The most important thing to remember: The SAI is not the dollar amount your family is expected to pay, nor is it the amount of aid you will receive. It is simply a "need-meter" that colleges use to see where you sit on the spectrum of financial need.

How to Interpret Your SAI Results

Once your FAFSA is processed, you will receive a FAFSA Submission Summary containing your official SAI. Here is how to read that number:

• The Lower the Number, the Higher the Need: A lower SAI indicates that your family has fewer financial resources available for college.
• The Negative SAI: Unlike the old system, which stopped at zero, the SAI can go as low as –1,500. A negative number is a "flag" for financial aid offices that a student has the highest possible level of financial need, often qualifying them for the maximum Federal Pell Grant.
• The 0 to 999,999 Range: A score of 0 or a low positive number still indicates a significant need. As the number climbs higher, your eligibility for "need-based" aid (like subsidized loans or certain grants) decreases.

How Colleges Use Your SAI (The Formula)

Colleges use a simple equation to determine your "Financial Need." They take their total Cost of Attendance (COA)—which includes tuition, housing, food, and books—and subtract your SAI.

Cost of Attendance (COA) - Student Aid Index (SAI) = Financial Need

In this scenario, even though the student's "financial strength" (the SAI) is the same, their Financial Need is much higher at the private university. The university's financial aid office will then try to "fill" that $75,000 gap using a mix of scholarships, grants, work-study, and loans.

Key Takeaway for Parents

The SAI is designed to be more generous to low-income and single-parent households than the old system. However, a major change is that the SAI no longer gives a discount for having multiple children in college at the same time. If you have a "split" household (divorced/separated), remember that the SAI is now calculated based on the parent who provides the most financial support, rather than just the parent the student lives with most often.