How is the Student Aid Index (SAI) calculated and what actually counts?

The SAI is a number that estimates how much your family can contribute, and it's built from parent income, parent assets, and student income and assets – but with big carve-outs. Retirement accounts (401(k), IRA, 403(b)) and the equity in your primary home do not count as assets on the federal formula. What does count: taxable income, cash, taxable brokerage accounts, 529 plans, and second homes or rental properties. Parent assets are assessed at a maximum of about 5.64%, while student assets are hit much harder at 20%, so money in the kid's name reduces aid more. Income, not assets, usually drives the SAI for most families. The SAI can even go negative (to –1,500), which signals deeper need. Run wealthserene.com/tools/college-planner to estimate your SAI before you assume you won't qualify for aid.