EFC Meaning: What Happened to EFC?

Feb 24, 2025 | By: Ascent
Categories: Blog, For Cosigners

Mother and daughter doing finances together at home

The months leading up to your first year of college are incredibly exciting. You might be shopping for your dorm room essentials and spending the summer with friends, but as you prepare for your first day of college, you also need to determine how to fund your education.

Understanding common terms like Expected Family Contribution (EFC), Student Aid Index (SAI), and the Free Application for Federal Student Aid (FAFSA) is a good place to start. The EFC was recently replaced by SAI—just one of the many changes implemented as part of the FAFSA Simplification Act.

For most students and families, your SAI and EFC will be similar; it’s just a shift in terminology to bring more transparency to the process. Continue reading to learn what EFC is, the differences between EFC and SAI, and the role these metrics play in determining financial aid eligibility.

What Is EFC?

Until the 2024–2025 school year, the EFC was a metric used during the FAFSA application process to help determine your eligibility for federal financial aid. While the application now uses SAI, both are calculated based on your family’s taxed and untaxed income, assets, and other benefits (like unemployment or Social Security).

Once you’ve completed the FAFSA, you will receive a FAFSA Submission Summary containing your score. Your school will then use this metric to determine your eligibility for federal student aid, such as scholarships, grants, loans, and work-study programs.

Why Was EFC Replaced?

Many families misunderstood the Expected Family Contribution (EFC), believing it represented the amount they had to contribute toward college. The FAFSA replaced EFC with the Student Aid Index (SAI) as part of a broader effort to improve transparency and make the financial aid process easier to understand.

What Is SAI?

Like the EFC, the Student Aid Index (SAI) is a FAFSA metric used to help calculate a student’s eligibility for federal financial aid. It replaced the EFC beginning in the 2024–2025 school year. The lowest possible SAI is –1,500 and the highest is 999,999: A lower SAI may increase the amount of need-based aid you’re eligible to receive, while a higher SAI may result in a lower amount of financial aid.

Your school uses the SAI number on your FAFSA Submission Summary to help determine your eligibility for federal financial aid, including federal loans, grants, scholarships, and work-study programs. Students eligible for more federal financial aid may have fewer education expenses to cover out of pocket. That’s why it’s so important to accurately complete the FAFSA and provide the information needed to calculate your SAI.

How Is SAI Calculated

Your SAI is calculated based on several factors, including your and your parent’s income, assets, taxes, and demographics. While your SAI does not determine your eligibility for financial aid on its own, it does help colleges identify students with greater financial need.

If you’re wondering what EFC is and how it compares to SAI, you should know that the switch to the new metric changed three main factors in how federal financial aid eligibility is calculated:

The EFC considered how many children a family has in college simultaneously, which the SAI no longer includes.
The EFC included a Small Business Exclusion that was eliminated in the SAI.
The EFC Family Farm Exclusion has been modified. However, the SAI still allows the net worth of the family farm to be excluded as an asset in some circumstances.

What Does FAFSA Score Mean?

Your FAFSA score refers to the number you see on the Submission Summary you receive after you apply, which helps determine your financial aid eligibility. This number used to be called the Expected Family Contribution (EFC), but it’s now the Student Aid Index (SAI).

Many students and parents feel confused when reviewing their FAFSA results, especially if they assume the number represents exactly what they must pay for college. The switch to SAI is meant to clear up that confusion and provide a more accurate picture of financial aid eligibility.

Understanding Your FAFSA Metrics

Your FAFSA Submission Summary provides a review of your answers on the application as well as your SAI number. It might also include estimates of your eligibility for the Pell Grant or federal loans. These numbers give your school a full picture of your financial situation so they can create your aid package. Your SAI number determines your eligibility for the following:

Pell Grant: This is a type of federal financial aid that doesn’t have to be repaid. Your SAI helps determine if you can receive this grant and at what level.
Federal loans: Your SAI helps determine the types and amounts of federal student loans available to you, including subsidized loans (which don’t accrue interest while you’re in school) and unsubsidized loans (which do).
Work-study: Your summary will indicate if you may be eligible for this federal, need-based program that provides part-time jobs for eligible college students.

Learn More With Ascent

Understanding the meaning of EFC, SAI, and other important terms and staying ahead of FAFSA deadlines are great starting points in securing the funds you need to achieve your academic goals. From financial wellness resources to budgeting tips, there’s no shortage of information to help you make informed financial decisions.

If you’ve maximized your options for federal financial aid and find out the funds aren’t enough to cover your total education expenses, don’t be deterred. Ascent offers a variety of undergraduate student loans to help propel you on your path to higher education. Learn more about our cosigned student loans, or check your rates today without impacting your credit score.

FAQs

What Does SAI Mean in Financial Aid?

SAI stands for Student Aid Index, a metric used to help determine eligibility for federal financial aid during the FAFSA application process. The SAI replaced the Expected Family Contribution (EFC) beginning in the 2024–2025 award year. The goal is to improve transparency and help minimize confusion around the meaning of this important score.

Is SAI Better Than EFC?

SAI is not necessarily better or worse than the EFC, but it was designed to be clearer and more accurate. By removing the word “contribution,” SAI helps reduce confusion about what families are expected to pay and provides a more transparent financial aid calculation. In most cases, the amount of financial aid a student is eligible for using either metric is the same. Any differences in eligibility would be due to the unique family circumstances addressed in the FAFSA Simplification Act.

How Do I Find My SAI?

You can find your Student Aid Index (SAI) on your FAFSA Submission Summary, which is available after your FAFSA is processed. To access it, log in to StudentAid.gov, create an account, and then check your FAFSA status. You can also use tools like the Federal Student Aid Estimator to estimate your SAI without submitting the FAFSA.