How does FAFSA determine income limits?

Hey guys, I'm starting to look into FAFSA and was wondering how they determine income limits for financial aid. Is there a specific chart I can refer to or a general guideline? I couldn't find any info for this year. Thanks for the help!

Hello! The FAFSA doesn't have set income limits that dictate whether you're eligible for financial aid or not. Instead, FAFSA uses a variety of factors to calculate your Expected Family Contribution (EFC) which affects your eligibility for aid at various colleges. Starting from the 2023-2024 academic year, EFC has been replaced by something called the Student Aid Index (SAI), but the underlying concept remains similar.

The SAI calculation takes into account your family's income, household size, number of family members attending college, and some aspects of your parents' assets, such as savings and investments (excluding retirement funds and home equity). Other factors, such as the age of your older parent, will also play a role in the asset protection allowance.

It's essential to understand that each college might use your SAI differently to determine your financial aid eligibility or award distribution. Moreover, schools may require additional financial aid forms, like the CSS Profile, to calculate your financial aid package more precisely.

So, there's no easy-to-follow chart or concrete income limits that determine your eligibility for financial aid solely based on income. The best way to estimate your aid amounts at specific colleges is to utilize their Net Price Calculators, which are available on their websites. By entering your family’s financial information, you'll get an estimate of what financial aid package you could potentially receive at that institution.

Remember to complete the FAFSA regardless of your family's income, as you might be eligible for various types of financial aid, including federal loans, work-study programs, or merit-based scholarships from colleges. Good luck with the financial aid process!