Expected Family Contribution (EFC) vs. Student Aid Index (SAI): What You Need to Know
The transition from the Expected Family Contribution (EFC) to the Student Aid Index (SAI) marks a significant change in how financial aid eligibility is calculated for students seeking federal assistance for higher education. Historically, the EFC has been a key figure in determining the amount of financial aid students could receive, calculated on the family’s financial strength. However, the EFC has often been misunderstood, with many interpreting it as the amount a family is expected to pay out of pocket, rather than a tool for aid allocation. This misinterpretation, coupled with its somewhat opaque calculation methods, led to calls for a more transparent and intuitive system.
Enter the Student Aid Index (SAI), which will replace the EFC starting in the 2024–2025 academic year. The SAI aims to provide a clearer and more equitable assessment of a family’s ability to contribute to educational costs. Unlike the EFC, the SAI can be a negative number, potentially increasing eligibility for need-based aid. This shift is designed to reflect a more accurate picture of financial need and ensure aid is distributed more effectively. Families should understand the SAI, like EFC, is not the exact amount they will pay but a figure used by institutions to allocate financial aid. As these changes take effect, students and families should stay informed and consider how these adjustments may impact their financial aid strategies and college planning.
How do you feel about the changes from the Expected Family Contribution (EFC) to the Student Aid Index (SAI), and do you think it will affect your financial planning for college? To learn more about this change, please read here.