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Student Aid Index and EFC Flashcards

6 cards from real FAFSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Student Aid Index and EFC flashcards as text

  1. Under the FAFSA Simplification Act, how does having multiple children in college affect the SAI?

    Answer: Each sibling gets their own separate SAI

    Starting with the 2024-25 FAFSA, each student receives their own individual SAI rather than dividing the family's EFC.

  2. What prior-prior year income does the 2025-26 FAFSA use?

    Answer: 2023 income

    The 2025-26 FAFSA uses 2023 federal tax return data, following the prior-prior year (PPY) rule.

  3. Which asset type is NOT reported on the FAFSA for parents?

    Answer: Primary home equity

    The primary home equity is not reported on FAFSA, unlike investment properties or savings accounts.

  4. Small business assets are excluded from FAFSA if the business has fewer than how many full-time employees?

    Answer: 50

    Family-owned businesses with fewer than 100 full-time employees are excluded from FAFSA asset reporting.

  5. How are retirement accounts treated in the SAI calculation?

    Answer: Not counted as assets

    Retirement account balances such as 401(k)s and IRAs are not reported as assets on the FAFSA.

  6. What percentage of student assets is assessed in the SAI formula?

    Answer: 20%

    Student-owned assets are assessed at 20% in the SAI formula, compared to a maximum of 5.64% for parent assets.