New name and new formula for determining federal financial aid need
August 16, 2023
Beginning with the 2024-25 Free Application for Federal Student Aid (FAFSA), students and parents will receive a Student Aid Index (SAI) after completing the form.
The SAI, which will replace the Expected Family Contribution (EFC), is the number calculated using data provided on the form and is a determination of the student's need for federal financial aid.
Not only is the name changing, but also there are changes to the federal need analysis formula, including the removal of the number of family members in college as a part of the calculation.
Students also have the possibility of receiving a negative SAI, which can indicate extreme financial need. It will be up to the college or university to determine if any additional institutional aid may be awarded to the student.
The new name and formula, as well as several other federal financial aid changes, are due to requirements under the FAFSA Simplification and FUTURE Acts, approved by Congress.