Estimate the 2027-28 FAFSA Student Aid Index for a dependent student, and the Pell Grant
Updated October 2026
The Department of Education’s 2027-28 SAI and Pell Grant Eligibility Guide (June 2026) sets out Formula A for dependent students in 37 lines. In short: 1. Parents’ income (AGI plus untaxed additions, minus offsets). 2. Minus allowances: federal income tax paid, payroll taxes, an income protection allowance by family size, and an employment expense allowance. 3. Plus 12% of parents’ net assets (cash, investments including 529 plans, child support received, and part of any business or farm). 4. Run the result through a progressive table (22% to 47%) to get the parents’ contribution. 5. Add 50% of the student’s income above a $12,220 allowance and 20% of the student’s assets. The SAI can be as low as −1,500.
The guide’s worked example (Table 11). Parents’ AGI $166,332, $1,000 of untaxed IRA distributions, $40,326 of income tax, earnings of $95,456 and $85,002, family of seven, $24,789 in cash and $48,574 in investments; the student earned $6,755 with $5,723 of AGI. Payroll allowance $2,617 + $11,188; income protection $71,550; employment allowance $5,200; total allowances $130,881. Parents’ available income $167,332 − $130,881 = $36,451. Assets: 12% × $73,363 = $8,804. Adjusted available income $45,255, so the parents’ contribution is $10,056 + 40% × ($45,255 − $39,900) = $12,198. The student’s income is under the allowance and there are no student assets, so the SAI is 12,198. This calculator reproduces every step.
| Item | 2027-28 value |
|---|---|
| Income protection allowance, family of 2 / 3 / 4 / 5 / 6 | $30,300 / $37,720 / $46,590 / $54,970 / $64,290 (+$7,260 each) |
| Employment expense allowance | Lesser of 35% of earnings or $5,200 |
| Parent asset protection allowance | $0 at every age |
| Parent asset conversion rate | 12% |
| Parents’ contribution rates | 22% up to $22,600 of adjusted available income, rising to 47% above $45,600 |
| Student income protection allowance | $12,220; 50% of the rest counts |
| Student assets | 20% |
| Payroll tax allowance | Medicare 1.45% (2.35% above $250,000 joint / $200,000 other) and Social Security 6.2% up to $176,100 per earner |
Maximum Pell goes to a student whose parents did not file a tax return, or whose parents’ AGI is above zero and at or below 175% of the poverty guideline for the family size (225% for a single parent), and to anyone with an SAI of zero or less. Otherwise the Pell Grant is the maximum minus the SAI, as long as that is at least the minimum. Minimum Pell goes to a student whose parents’ AGI is at or below 275% of the poverty guideline (325% for a single parent) and whose SAI is less than twice the maximum Pell. The 2027-28 award year uses the 2025 HHS poverty guidelines ($32,150 for a family of four in the 48 states). Award amounts for 2027-28 had not been announced as of October 22, 2026, so the calculator uses the 2026-27 amounts: $7,395 maximum and $740 minimum (Dear Colleague Letter GEN-26-01). Students enrolled less than full time receive less.
Use the 2025 tax return (the “prior-prior” year for 2027-28). AGI is Form 1040 line 11; income tax paid is line 22 minus Schedule 2 line 2. Untaxed additions are deductible IRA contributions, tax-exempt interest and the untaxed part of IRA or pension distributions (not rollovers). Earnings are each parent’s wages and self-employment income. Family size counts the student, the parents and other people they support. Assets are current balances on the day the FAFSA is filed: cash, investments including 529 plans owned by parents or the student, and real estate other than the home. Retirement accounts and the family home are not counted.
| Family (2025 income) | SAI | Pell estimate | Basis |
|---|---|---|---|
| Two parents, $85,000 AGI, family of 4, $25,000 savings (default) | 5,624 | $1,771 | maximum minus SAI |
| Single parent, $38,000 AGI, family of 3 | -1,500 | $7,395 | maximum (income at or below 225% of the poverty guideline) |
| Single parent, $62,000 AGI, family of 2 | 4,206 | $3,189 | maximum minus SAI |
| Two parents, $150,000 AGI, family of 4, $120,000 in savings and 529s | 34,207 | $0 | not eligible |
| Two parents, $54,000 AGI, family of 5 | -1,500 | $7,395 | maximum (income at or below 175% of the poverty guideline) |
The single parent at $38,000 with a family of three is under 225% of the guideline, so the student gets the maximum Pell no matter what the formula produces. The $150,000 family has no Pell eligibility, but the SAI still drives other need-based aid.
It handles dependent students only (independent students use Formulas B and C). It does not apply the FAFSA’s asset reporting exemptions, which skip assets for some lower-income families and could lower the SAI; it simplifies income offsets such as education credits, taxable grants and work-study; and it does not estimate college aid, which each school sets from the SAI and its own cost of attendance. The official SAI appears on the FAFSA Submission Summary; the financial aid office can adjust it for special circumstances such as job loss. Use the official FAFSA or a college’s net price calculator for decisions.
Using 2026 income: 2027-28 uses 2025 returns. Listing retirement accounts or the home as assets. Neither counts. Leaving out 529 plans owned by a parent, which count as parent assets. Assuming small business owners are exempt: business and farm net worth now counts, adjusted by Table A3. Treating SAI as the bill: it is an index for aid eligibility, not what the college will charge.