How much of student's income and savings are counted in FAFSA SAI calculation?

my kid got hit HARD on this!!! they took like 50% of her savings i think. totally unfair system that punishes kids who work hard

For the 2025-2026 FAFSA, the formula works like this: For dependent students, 50% of the student's income (after allowances) is counted in the SAI calculation. The student receives an income protection allowance (around $7,600 for 2025-2026), so only income above that threshold is counted. For assets/savings, 20% of a dependent student's assets are counted. This is different from parent assets which are assessed at a lower rate (between 2-5% depending on income). So in your daughter's case, if she made $8,200, only $600 would be above the protection allowance, meaning approximately $300 (50% of $600) would be counted from income. Then about $700 (20% of $3,500) would be counted from savings. So the total impact on her SAI from her own resources would be roughly $1,000.

Not to disagree with the previous answer which is mostly right, but there are a few other factors to consider: 1. If your daughter files taxes, there's also an income tax allowance subtracted before the 50% assessment 2. There's a small employment allowance (about $400) for working students 3. Some states have their own formulas for state aid that might assess student assets differently The income protection allowance increases slightly each year too. The exact numbers get published in the Federal Register annually.

I went through this EXACT situation last year with my son. It was incredibly frustrating trying to get clear answers from anyone. We kept getting disconnected when calling the Federal Student Aid number, and the school financial aid office gave us different answers each time. I finally used Claimyr (claimyr.com) to get through to an actual FSA agent who explained everything to us. You can see how it works in their video: https://youtu.be/TbC8dZQWYNQ The agent confirmed everything others have said here about the 50% of income above allowances and 20% of assets. But they also explained some exceptions and special circumstances we could submit documentation for. Worth looking into if your daughter has been supporting herself significantly.

idk why everyone's so worried about student income when parent income matters WAY more for the SAI. your income probably impacts her eligibility 10x more than her little part time job tbh

I think what's confusing you is that it SEEMS like double-counting, but the FAFSA is actually looking at two different things: 1) annual income, which indicates ongoing ability to pay, and 2) savings/assets, which represent accumulated resources. Imagine if your daughter had received a $3,500 inheritance instead of saving it from her job. FAFSA would still count it the same way. The formula doesn't care where the savings came from, just that they exist as a potential resource. A strategy some families use is to spend down student savings on education-related expenses before filing FAFSA. For example, if she needs a laptop for college, buying it before filing FAFSA would reduce her reportable assets.

omg the whole FASFA thing is such a mess this year!!! 😫 my daughter tried saving $$ from her summer job but her friend told her not to bother bc theyll just take it all anyway so she bought a new phone instead lol

The student contribution assessment has long been a point of contention in the FAFSA formula. Studies have shown that making students contribute from their own earnings actually decreases college completion rates among low-income students. Many colleges recognize this and use institutional methodology to adjust their aid packages. If your daughter's college choices include private schools that require the CSS Profile, be aware they may calculate her contribution differently than the FAFSA. In my experience, some financial aid offices will make adjustments if you explain your situation regarding her work supporting her basic needs.

This is such a helpful thread! I'm in a similar situation with my son who's been working at a grocery store for the past two years. Reading through everyone's responses, I'm realizing I need to be more strategic about timing. One thing I wanted to add - I learned from our high school counselor that the FAFSA looks at your "base year" income, which for the 2025-2026 school year is your 2023 tax year. So if your daughter is still working now, her 2024 earnings won't impact this year's FAFSA but will affect next year's renewal. It's worth planning ahead for sophomore year FAFSA too, especially if she increases her hours or gets a raise. The income protection allowance helps, but every little bit of planning can make a difference in the long run. Thanks to everyone who shared the specific percentages and strategies - definitely saving this thread for reference!

As a parent who just went through this process last year, I want to echo what others have said about the importance of understanding these calculations early. The 50% income assessment above the protection allowance and 20% asset assessment are correct for 2025-2026. One additional tip I learned the hard way: if your daughter has any money in a custodial account (UTMA/UGMA) from when she was younger, those are assessed at the same 20% rate as her other assets. But here's what I wish I'd known - if she's 18 or older, she can legally take control of those funds and use them for qualified education expenses before filing FAFSA. Also, don't forget that work-study earnings are excluded from next year's FAFSA income calculation, so if she qualifies for work-study in college, that's actually better for future aid eligibility than regular part-time work. The system definitely isn't perfect, but understanding the rules helps you work within them more effectively!

As someone who just started looking into this whole process, this thread has been incredibly enlightening! I'm a newcomer to understanding FAFSA calculations and was feeling pretty overwhelmed by all the conflicting information I've been hearing from other parents. The breakdown of the specific percentages (50% of income above the protection allowance, 20% of assets) really helps me understand what we're actually dealing with. I love the practical tips too - especially the strategic timing suggestions about purchasing education-related items before filing FAFSA to reduce reportable assets. One question I have after reading through everything: does the timing of when your student opens a savings account matter at all? My son just started working this fall and we were thinking about helping him open his first savings account, but now I'm wondering if there are any FAFSA implications I should consider for the timing. Thanks to everyone for sharing such detailed and helpful information - this is exactly the kind of real-world guidance that's impossible to find on the official websites!

As someone new to navigating FAFSA calculations, this entire discussion has been incredibly helpful! I'm just starting to understand how complex these formulas really are. One thing that's been on my mind after reading through all the responses: are there any legitimate ways to help students minimize their asset assessment without compromising their financial responsibility education? I love that so many of you have mentioned strategic timing for education-related purchases, but I'm wondering if there are other approaches that teach good financial habits while also being FAFSA-smart. For instance, should students consider keeping their savings in a parent's account instead of their own if the parent asset assessment rate is lower? Or would that create other complications? I want to make sure we're making informed decisions that benefit both her immediate college funding needs and her long-term financial literacy. The income protection allowance giving her some cushion on the earnings side is reassuring, but I'm still wrapping my head around the asset piece. Thanks again to everyone who's shared such detailed breakdowns of the actual percentages and formulas!

As someone who's been helping families navigate FAFSA for several years, I want to add one important point that hasn't been mentioned yet: the asset protection varies significantly based on when you file your FAFSA during the year. The key date is the "as of today" snapshot when you submit your FAFSA. So if your daughter typically has higher account balances right after getting paid, try to file on a day when her account balance is naturally lower (like right after she's paid monthly expenses). This is completely legitimate since you're just choosing your filing date strategically. Also, I noticed someone mentioned Claimyr earlier - I've heard good things about their service for getting through to actual FSA representatives. The official phone lines have been particularly problematic this year. One last tip: keep detailed records of any education-related expenses you make before filing FAFSA. If you're ever selected for verification, having receipts showing the laptop, textbooks, etc. were legitimate educational purchases will save you headaches later. Your daughter should be proud of her work ethic and savings discipline - the system may not be perfect, but at least now you understand exactly how it works!

As a newcomer to this whole FAFSA process, I have to say this thread has been absolutely invaluable! I'm the parent of a high school junior who just started her first job, and I've been stressing about how her earnings might impact our financial aid eligibility next year. The specific breakdown of 50% of income above the $7,600 protection allowance and 20% of assets is exactly what I needed to understand. What really helped me was seeing the actual dollar amounts in the original example - it makes the percentages so much more concrete and less scary than I initially thought. I'm particularly grateful for all the strategic tips about timing education-related purchases before filing FAFSA. My daughter needs a new laptop and some other supplies for senior year, so knowing we can legitimately reduce her reportable assets by making those purchases strategically is really helpful. One follow-up question: for students who are just starting to work (like my daughter), is it worth having conversations with them about these FAFSA implications early on? I don't want to discourage her work ethic, but I also want to make sure we're making informed financial decisions as a family throughout her senior year. Thank you to everyone who shared such detailed and practical advice - this is the kind of real-world guidance that makes all the difference!

As someone completely new to the FAFSA process, this thread has been a lifesaver! My daughter just turned 16 and got her first job at a local retail store, and I had no idea how her earnings would impact our future financial aid applications. The clear breakdown everyone provided about the 50% income assessment above the protection allowance and 20% asset assessment really helps me understand what we're dealing with. I love how you've all shared specific dollar amounts and real examples - it makes the abstract percentages so much more manageable to understand. I'm definitely taking notes on all the strategic timing advice, especially about making education-related purchases before filing FAFSA. It's reassuring to know there are legitimate ways to be smart about the system without doing anything inappropriate. One question I have: since we're still two years out from filing our first FAFSA, should I start having conversations with my daughter now about these implications, or wait until closer to application time? I want to help her make informed decisions about her earnings and savings without overwhelming her or making her feel like working isn't worth it. Thanks to everyone for sharing such detailed and practical guidance - this is exactly the kind of real-world information that's impossible to find anywhere else!