Understanding the EFC vs. SAI in Financial Aid

While researching financial aid, I came across terms like Expected Family Contribution (EFC) and Student Aid Index (SAI). I'm trying to understand the difference between them and how they impact the financial aid packages colleges might offer. Are both still used, or is there a transition happening?

The Expected Family Contribution (EFC) and the Student Aid Index (SAI) are both measures used in the financial aid process, but they're not exactly the same thing. The EFC used to be a measure of what a family is expected to contribute to college costs in a year. This was based on the family's income, assets, and benefits (like unemployment or Social Security).

On the other hand, the SAI is a newer measure and as of now, it's the main figure being used for financial aid considerations. The change was part of an overall simplification of the FAFSA process. One of the major differences between EFC and SAI is that the SAI can be as low as negative $1,500, while the EFC could not drop below zero in the past. This can be beneficial for low-income families, as negative values could potentially increase the amount of financial aid they receive.

Another difference is that the SAI is not divided based on the number of students in college within a family, as was the case with EFC. With the EFC, families with more than one child in college at a time would see their EFC split among their kids. But with SAI, each student will have their own separate SAI, regardless of how many siblings are in college.

It's important to understand how the SAI is calculated and used since this can influence the financial aid package you might be offered by a college. While a lower SAI can potentially mean more financial aid, this can vary significantly from college to college and is also dependent upon other factors such as the availability of funds, the cost of attendance, and institutional aid policies.