Maximize Your Financial Aid By Understanding the New Student Aid Index
One of the biggest updates to the FAFSA is the introduction of the Student Aid Index (SAI). The Student Aid Index is replacing the Expected Family Contribution, which was the amount a family would have to pay out-of-pocket for college expenses. Now, the SAI will help colleges and universities determine how much funding a student can receive. Like any change, there’s always pros and cons – so we’re breaking down how the new Student Aid Index might impact your family and student’s ability to pay for college.
Who will see an increase in financial aid?
Perhaps one of the biggest pros of the SAI is that more students will be able to receive access to Pell Grants. Access to Pell Grants is typically based on family size and the federal poverty line. Starting this year, applicants who don’t qualify for a max Pell Grant if their SAI is less than the maximum grant amount.
Single-parent households will be impacted positively with the new SAI, as well. The poverty line thresholds are higher for single-parent households, meaning more of them will qualify for the Pell Grants. This is a great improvement for families in this situation!
Who will see a decrease in financial aid?
In the past years, families with more than one student in college received benefits. Starting with the 2024-2025 FAFSA cycle, that will no longer be the case. Families with several students in college at the same time will qualify for less aid overall. Instead of “splitting” the income across the children, the new SAI will not account for siblings in school at the same time.
Additionally, families who have small businesses with a sizable valuation may see a decrease in available aid with the new SAI and FAFSA. In the past, smaller businesses were not considered an asset on the FAFSA but they now will be.
Will the new Student Aid Index impact me?
The answer is most likely “yes”, but we can’t completely say how your family and student will be impacted by the new SAI. The financial aid you’re offered is based on a variety of factors, including your family size, assets, and income levels. If your student is still gearing up to apply for college, now would be a good time to start saving for future college expenses – just in case!
More about Jodi and College Financial Aid Advisors
Jodi is a FAFSA financial advisor who helps with the financial aid process to help families of college students maximize their financial aid. From completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options, Jodi is a fantastic resource when it comes to student financial aid. Schedule a 15 Minute Power Chat to learn more about finding ways to pay for college.
Twitter: The new Student Aid Index is replacing the Expected Family Contribution on the 2024-2025 FAFSA and will likely impact how much aid you receive. Learn more here!
Instagram: One of the biggest updates to the FAFSA is the introduction of the Student Aid Index (SAI). The Student Aid Index is replacing the Expected Family Contribution, which was the amount a family would have to pay out-of-pocket for college expenses. Like any change, there’s always pros and cons – so we’re breaking down how the new Student Aid Index might impact your family and student’s ability to pay for college.
Facebook: The Student Aid Index is replacing the Expected Family Contribution moving forward on the FAFSA. This new system will change how families receive aid – some will receive less and others are going to get access to more money. Learn how your family might be impacted in today’s blog!