Which federal methodology is used to calculate the SAI?

• A. Institutional Methodology
• B. Federal Methodology
• C. Budget
• D. Combined Methodology

Answer: (B)

Calculating the Student Aid Index uses the Federal Methodology—the standard federal formula for assessing how much a family can contribute to college costs. It weighs factors like taxed and untaxed income, assets, family size, the number of family members in college, and other allowances to estimate the expected contribution. The result feeds into the need calculation that determines federal aid eligibility, so this federal formula is what produces the SAI. Institutional Methodology is a separate, school-specific approach used for institutional aid, not federal aid, and Budget or Combined Methodology aren’t the federal method used to compute the SAI.