Financial Aid

Beginning with the 2024-2025 FAFSA aid year, the Student Aid Index (SAI) will replace the Expected Family Contribution (EFC). The SAI is a number calculated by the information on the 2024-2025 FAFSA provided by the student and other contributors. It determines a student’s eligibility for certain types of federal aid such as student loans and Pell grants.

The SAI is used in the below formula to determine a student’s financial need.

• Cost of Attendance (COA) – Student Aid Index (SAI) – Other Financial Assistance (OFA) = Need

What is the difference between the EFC and SAI?

• The SAI can be a negative number as low as -1500 to give financial aid administrators more insight into a student’s financial need.
• The number of family members in college has been removed in the calculation for SAI.
• Child support received is now counted as assets in the formula calculation for the SAI. Previously, child support received was counted as untaxed income in the calculation for the EFC.
• Family farms and small businesses will now count as assets in the SAI formula.

Beginning in 2024-2025 aid year, the amount of Pell a student can be eligible to receive is no longer determined by the EFC and Pell Charts. Please see below for general information regarding Pell eligibility for 2024-2025 and beyond. Note: The Maximum and Minimum Pell Grant Amounts have not been announced by the Department of Education at this time.

Maximum Pell Grant Eligibility

• Eligibility for the Maximum amount of Pell is determined by a student’s (or parent's if the student is classified as a dependent) adjusted gross income, tax filing status, and the annual U.S poverty level guidelines for family size and state of residence.
• SAI is -1500 to 0

Student Aid Index (SAI) Calculated Pell Grant Eligibility

• For students who do not qualify for Maximum Pell, they may be eligible to receive a Pell amount calculated by their SAI.
• Maximum Pell Amount – SAI = Calculated Pell Grant Amount rounded to the nearest $5.

Minimum Pell Grant Eligibility

• Students who do not qualify for the Maximum Pell or Calculated Pell may be still be eligible to receive the Minimum Pell Grant based on adjusted gross income, tax filing status, and the annual U.S poverty level guidelines for family size and state of residence.

Not eligible for Pell Grant

• Students whose calculated SAI is greater than the Maximum Pell Award OR the calculated Pell amount is less than the Minimum Pell Award will not qualify for the Pell grant.

For more detailed information on the SAI and Pell eligibility, please reference the 2024-25 Draft Student Aid Index and Pell Grant Eligibility Guide (PDF)

If you would like to see an estimate of how much aid you could potentially receive for 2024-2025, please check out the Department of Education’s Federal Student Aid Estimator.

Because of the upcoming changes by the U.S. Department of Education, the FAFSA application will not only have a new look, but will also include some new terminology and steps for FAFSA completion.

Contributors

• A Contributor is any individual that is required to provide their signature and consent for their federal tax information to be included on the FAFSA form.
• Contributors include the student, the student’s spouse, the student’s biological or adoptive parent, and the parent’s spouse (stepparent).
• All contributors who do not have one will be required to create an FSA ID. It is recommended that all contributors create their FSA ID beginning in October to avoid delays.
• The FAFSA application will not be fully submitted and processed until all contributors have given their consent and signed the FAFSA using their FSA ID.
• Students will be prompted to list the email addresses of other required contributors such as parents on the FAFSA application.

Consent

• For the 2024-2025 aid year, contributors will now be required to give their consent for their federal tax information to be included on the 2024-2025 FAFSA.
• Once consent is given, it cannot be revoked for that aid year.
• If a contributor refuses to give consent for their federal tax information to be included on the FAFSA, the student will only be eligible for a Federal Direct Unsubsidized Loan.
• An FSA ID will be required to give consent. Again, it is recommended that all contributors create their FSA ID beginning in October.

FADDX replaces IRS DRT

• Beginning with the 2024-2025 FAFSA, the IRS Data Retrieval Tool (IRS DRT) will be replaced by the FUTURE Act Direct Data Exchange (FADDX).
• Previously, the IRS DRT gave both students and parents the option to import tax return data to their FAFSA instead of manually entering the information on the FAFSA.
• In 2024-2025, the FADDX authorizes the IRS to provide federal tax information directly to the FAFSA application upon receiving consent from the contributor.
Students and Parents will no longer be given the option to manually enter their tax information on the FAFSA.

• To be eligible for federal aid such as student loans and Pell grants, students must still complete the FAFSA every year.
• Students and parents will still need to sign the online FAFSA application using their FSA ID.
• Students will still need to list the University of Memphis, school code 003509, on their FAFSA for our office to receive the application and process their aid.
• To receive Federal Aid, students must complete any unmet requirements for Financial aid listed on their MyMemphis account. We highly encourage students to complete the FAFSA application as soon as it becomes available and satisfy all Financial Aid requirements each year to prevent any delays for receiving Federal and State Aid.

Complete the FAFSA now by doing the following:

• If you don't already have an FSA account, then create one on the Federal Student Aid website and assist contributors, such as your parent(s) or spouse, in creating an FSA Account.
• Complete the FAFSA at https://studentaid.gov/h/apply-for-aid/fafsa
• Use the Federal Student Aid Estimator to find out how much federal student aid you may be eligible for starting with the 2024-2025 award year.
• This tool estimates the Student Aid Index for 2024-25 award year, not the Expected Family Contribution (EFC) for 2023-24 and previous award years.