Does Sibling Income Affect Financial Aid?
Does sibling income affect financial aid? Get a clear explanation of aid calculations and how family college enrollment factors in.
Families seeking to fund higher education often wonder if a sibling’s income affects a student’s financial aid eligibility. Understanding financial aid calculations, especially the role of family income, is key to navigating this process.
Understanding Financial Aid Calculations
Financial aid eligibility is determined by assessing a family’s ability to contribute to college costs. This assessment calculates a Student Aid Index (SAI), which replaced the Expected Family Contribution (EFC) starting with the 2024-25 Free Application for Federal Student Aid (FAFSA). The SAI is an eligibility index number colleges use to determine federal student aid.
The SAI is not the actual dollar amount a family is expected to pay, but rather a numerical indicator of financial strength. A lower SAI indicates greater financial need, potentially qualifying a student for more aid. Colleges determine a student’s financial need by subtracting their SAI and any other estimated financial assistance from the institution’s Cost of Attendance (COA). The COA encompasses various expenses, including tuition, fees, room and board, books, supplies, and other educational costs.
Whose Income is Counted
A sibling’s individual income is not directly included in a student’s Student Aid Index calculation. The FAFSA primarily considers the income and assets of the student applicant and, if dependent, their parents. This means a sibling’s earnings or savings do not factor into another sibling’s federal financial aid eligibility.
The distinction between dependent and independent student status is important in determining whose financial information is required. Most undergraduate students are considered dependent for FAFSA purposes, meaning they must report their parents’ income and assets in addition to their own. Conversely, independent students are assessed solely on their own financial information, including their income and assets, and that of a spouse if applicable.
To qualify as an independent student, individuals must meet specific criteria:
Be at least 24 years old.
Be married.
Be a graduate or professional student.
Be a veteran.
Have legal dependents other than a spouse.
If a student meets any of these conditions, their parents’ financial information is not required on the FAFSA, which can significantly impact their calculated SAI.
The Role of Siblings in College Enrollment
The number of siblings attending college simultaneously once held significance in financial aid calculations. Under the former Expected Family Contribution (EFC) system, the EFC was often divided by the number of dependent undergraduate students from the same household enrolled at least half-time. This “sibling discount” effectively reduced the expected contribution per student, potentially increasing their eligibility for need-based aid.
However, a change occurred with the introduction of the Student Aid Index (SAI) for the 2024-25 FAFSA. The new federal methodology no longer considers the number of family members attending college simultaneously when calculating the SAI. This eliminates the federal “sibling discount,” which may result in a higher SAI and potentially less federal financial aid for families with multiple children in college compared to prior years.
Despite this federal change, some individual colleges and state financial aid programs may still take the number of siblings enrolled in higher education into account when awarding their own institutional aid. Families with multiple children in college should consult with the financial aid offices of prospective institutions, as some may exercise discretion to adjust aid offers to alleviate the financial burden.