The Pupil Assist Index is a rebranding of Anticipated Household Contribution, or EFC. The brand new identify is supposed to clear up confusion about what EFC really is: A quantity that faculties use to find out how a lot monetary support you may obtain.
It is not, because the identify suggests, the quantity your loved ones is predicted to pay towards your schooling, as most households find yourself paying greater than the EFC quantity after taking loans to fill gaps in support.
The renaming of EFC to Pupil Assist Index, or SAI, will probably be efficient beginning July 1, 2023, for the 2023-2024 tutorial 12 months and past. This transformation was a part of the FAFSA Simplification Act that was bundled into the Consolidated Appropriations Act of 2021, which included the second coronavirus reduction invoice.
The SAI will probably be used to calculate most want for monetary support, excluding Pell Grants, which have their very own calculation.
How will the Pupil Assist Index be calculated?
The knowledge you enter on the Free Software for Federal Pupil Assist, or FAFSA, about you and your loved ones’s monetary profile will decide your SAI. The index will equal the sum of your mother and father’ out there revenue, your revenue and belongings.
The new simplified FAFSA, which features a most of 36 questions in contrast with the 108 on the present utility, can even go into impact July 1, 2023, for the 2023-2024 tutorial 12 months and later.
When you submit the FAFSA, you’ll obtain your Pupil Assist Report, which particulars the data you included on the appliance and your SAI.
How will the Pupil Assist Index be used?
SAI is used as a part of the equation for monetary want, which is discovered subtracting the Pupil Assist Index and different monetary help from the value of attendance at every college. Your value of attendance consists of tuition, charges and room and board. The equation basically appears to be like like this:
Price of attendance – SAI = monetary want
Your monetary want does not essentially imply the total quantity you’re certified for. Faculties aren’t required to satisfy 100% of your monetary want with need-based support like grants or scholarships — and faculties can embrace loans in your monetary support award letter to satisfy want. Funding availability for support, reminiscent of work-study, may additionally be restricted at your college.