Understanding your Student Aid Index

I've heard the term 'Student Aid Index' a lot in the context of financial aid applications. What constitutes a good Student Aid Index, and how does it affect the aid I might receive?

The Student Aid Index (SAI) is essentially an indicator used by colleges to determine how much financial aid you're eligible for. It replaced the older system that used something referred to as Expected Family Contribution (EFC).

In the context of financial aid applications, a lower SAI is actually more beneficial. Here's why - a lower SAI indicates that your family has a lesser ability to contribute financially to your education, thus making you more eligible for need-based aid. On the other hand, a higher SAI score indicates a higher ability for your family to contribute to your education, thereby generally resulting in less need-based financial aid.

Keep in mind though, just like the old EFC, the SAI is not the amount you'll end up paying for college, nor the amount of aid you'll receive. It's essentially a starting point for schools to determine your financial aid package, taking into account their available resources, your unique situation, and their own institutional policies.

One important change to note with the SAI system is that it can go as low as negative $1,500, and it doesn't get adjusted based on the number of students from a family who are in college. This contrasts to previous years with the EFC, where it was considered equally divided among college students in the family.

To have a sense of what your SAI might be, you might use one of the net price calculators available on most college websites, which work by taking into account factors like income, assets, benefits, and family size. Remember, though, that these are estimates and your actual financial aid package might differ.