Implications of Negative SAI

The 2024-25 FAFSA Simplification Act brought about significant changes, notably replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI). A key aspect of this reform is the introduction of a negative SAI, which allows the lowest possible index to reach -1,500. While the new calculation provides greater differentiation among the nation’s lowest-income students, its practical impact on financial aid awarding, institutional decision-making, and federal policy remains underexamined. The Department of Education (ED) has taken the position that negative SAI should be treated the same as 0 for federal student aid awarding purposes, which limits institutions’ flexibility to accommodate negative SAI in financial aid packages. Still, schools can choose to use negative SAI to prioritize eligibility for certain aid types, or even to increase institutional aid for these students, so long as they do so within the confines of the cost of attendance (COA).

To better understand how institutions are responding to this change, NASFAA conducted a mixed-methods study in 2025, which included a practitioner survey of NASFAA’s Rapid Response Network, as well as a series of eight virtual focus groups and interviews with financial aid administrators from across various institutional sectors.

Key Findings

Institutions support the concept of negative SAI but seek policy reforms.
Most institutions treat negative SAIs the same as 0 SAIs.
Resources and systems primarily constrain aid packaging decisions.
Negative SAI is most commonly used to prioritize FSEOG.
Institutional aid packaging strategies vary widely.
Use of negative SAI outside of aid packaging is minimal.
Institutions are split on whether aid should exceed COA.
Communication with students about negative SAI is limited.

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Publication Date: 12/9/2025

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Implications of Negative SAI

Key Findings

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