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The Student Aid Index (SAI) will now replace the Expected Family Contribution (EFC) when calculating financial aid needs for families paying for college. This is the key formula that can help unlock scholarships, grants, federal student loans and other financial aid.
Both are calculated through formulas with information derived from the FAFSA form. The big reason behind the change is to create a better reflection on the true cost of colleges.
The formula is simple: cost of attendance (COA) minus Student Aid Index (SAI) and other financial assistance equals eligibility for need-based financial aid. But it's never simple.
In the past, many families have interpreted the EFC as the total cost that they will be expected to pay. However, many face higher costs because colleges don’t meet the full need of students or include loans as a part of the financial aid package.
The new term, Student Aid Index, can't erase the feelings that parents face when confronted with the costs of higher education. But it may allow parents and students paying for college to approach the financial challenge with fewer perceived expectations. With a more general term, parents may not feel solely responsible for funding their child’s higher education.
