FAFSA

The FAFSA is one of the most important forms you will complete during the college application process. It determines your eligibility for federal grants, state aid, school-based assistance, and federal student loans. Many colleges also require it when awarding scholarships.

Student Aid Index (SAI): The FAFSA produces a number called the “SAI,” which looks at your and your parents’ financial resources and then determines how much of those resources can realistically be contributed to paying college fees and expenses. Comparing the resulting SAI with the expected cost of education helps estimate how much financial help you may need:

Financial Need Formula: Cost of Attendance (COA) – SAI

SAI = (Parent Income Contribution) + (Parent Asset Contribution) + (Student Income Contribution) + (Student Asset Contribution)

The FAFSA weighs assets differently depending on ownership:

• Parent Assets: Parent assets are weighed up to 12%
• Student Assets: Your own assets are weighed at about 20%

This assumes that the income and assets in your own account can be set aside for education at a higher percentage than your parents. For example, $10,000 in a student’s account may reduce aid eligibility by $2,000, while the same amount in a parent’s account reduces it by only $564.