What Is The Federal Student Aid Estimator?

The Federal Student Aid Estimator is a free tool that gives you an estimate of how much federal aid you might receive. This tool is helpful for anyone planning to use federal aid to pay for college. Once you complete this quick application, it’ll let you know how much you might qualify for in federal loans and grants.

While the tool isn’t perfectly accurate since it relies on self-reported information, the estimate can help you understand options for covering your college costs before submitting the Free Application for Federal Student Aid (FAFSA). Plus, it can help you make more informed decisions about the colleges you consider.

How do you use the Federal Student Aid Estimator?

The U.S. Department of Education supplies the Federal Student Aid Estimator, which makes it free to use. Like the FAFSA, your household income and assets will be analyzed to determine the amount of aid you could receive.

The tool will guide you through these steps:

1. Fill out personal information: Enter your date of birth, marital status, state of residence and grade level.
2. Fill out household information: Hit continue and provide an answer for how many people are in your household.
3. Fill out income and asset details: Input your household income and household’s total assets.
4. Review projected financial aid: Once you have answered the questions, you will see an estimate of how much federal aid you qualify for, including Pell Grants and work-study. You’ll also see your Student Aid Index (SAI) number, which financial aid offices use to calculate your financial aid package.

How do you read your results from the Federal Student Aid Estimator?

Once you fill out the questions from the Federal Student Aid Estimator, the last page will show you the estimated results based on your SAI.

1. Review your estimated aid: The box at the top should show an estimate of how much total federal aid you could get.
2. Look at the aid breakdown: Under your total aid amount, you should see your aid broken into three categories: estimated Pell Grant, maximum Direct Loan amount and average work-study.
3. Read your SAI: Your SAI number is displayed near the bottom of the page. The lower your SAI, the better your chances of qualifying for need-based financial aid like work-study.

The estimator’s results show a fairly accurate amount of the federal aid you may be eligible for based on your SAI, but there are limitations. For example, the tool does not account for aid provided by your state or institution and uses the national average to calculate your work-study funds. The actual amount you receive may be higher or lower.

Is the Federal Student Aid Estimator accurate?

The Federal Student Aid Estimator is an estimation based on self-reported information. There’s a chance that you might not have all the right information, and the actual FAFSA includes much more detailed questions that may impact your SAI. That being said, the simulation is a starting point in determining your financial need.

The only way to find out your accurate SAI is to complete the FAFSA when it opens, which is usually Oct. 1 every year. The sooner you complete the FAFSA, the more need-based aid you can expect to receive. Applying sooner also gives you the chance to look for other types of free money in private scholarships and grants.

Bottom line

The Federal Student Aid Estimator is a free tool you can use to gauge your eligibility for federal aid. Your results are based on your SAI, income, family size, and other factors. While the tool isn’t completely accurate, it can give you a good idea of how to prepare for education expenses.