Calculator Methodology

This page explains how each Degree Sources tool works: what formulas it uses, where the data comes from, what assumptions it makes, and where its estimates may differ from official determinations. If you want to understand what is behind the numbers, this is the reference.

EFC / Student Aid Index (SAI) Calculator

What it calculates

Estimates your Student Aid Index (formerly Expected Family Contribution), which determines your eligibility for federal financial aid including Pell Grants, subsidized loans, and institutional aid.

Formula

The calculator implements the Federal Methodology as published by the U.S. Department of Education. The formula takes your adjusted gross income, applies income protection allowances (which vary by family size and number of dependents), accounts for assets above an asset protection allowance, and produces a contribution figure that financial aid offices use to determine your aid package.

Key components: total income, allowances against income (employment expense allowance, income protection allowance, state and other tax allowance), contribution from available income, contribution from assets, and the final SAI calculation.

Data sources

• Income protection allowances — Department of Education, updated annually
• State and other tax allowance percentages — IRS data, by state
• Asset protection allowances — Department of Education tables, indexed by age
• Employment expense allowance — Federal Methodology documentation

FAFSA Simplification Act changes

The FAFSA Simplification Act (effective for the 2024-25 award year) made significant changes to the federal aid formula. The Expected Family Contribution was renamed the Student Aid Index. The number of family members in college is no longer factored into the calculation. The formula for determining Pell Grant eligibility was restructured. Small business and family farm asset exclusions were modified. Our calculator reflects these changes for current award years.

Limitations

This is an estimate. Your actual SAI is determined by your completed FAFSA, processed by the Department of Education's Central Processing System. Our calculator cannot account for professional judgment adjustments, unusual circumstances appeals, or verification changes that your financial aid office may apply. If your financial situation involves non-standard elements (divorce, loss of income, significant medical expenses), contact your school's financial aid office for a more accurate assessment.

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Financial Aid Quiz

What it calculates

Walks you through 5-7 eligibility questions and produces a personalized estimate of your potential federal and institutional aid, including matched program suggestions.

Logic

The quiz applies federal eligibility rules (citizenship status, enrollment status, dependency status, income thresholds) to estimate which categories of aid you may qualify for. It layers institutional aid patterns on top — for example, estimating the likelihood of institutional grants based on your income range and the type of school you plan to attend.

Data sources

• Federal eligibility criteria — Federal Student Aid (StudentAid.gov)
• Pell Grant award tables — Department of Education
• Institutional aid patterns — aggregated from IPEDS financial aid data

Limitations

The quiz provides directional estimates, not precise award amounts. Institutional aid varies dramatically by school, and the quiz uses patterns rather than school-specific formulas. Your actual aid package will depend on the specific schools you apply to and their individual aid policies.

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Scholarship Finder

What it does

Searches and filters a database of scholarships by degree level, field of study, student type (e.g., first-generation, veteran, adult learner), and award amount range.

Data sources

• Institutional scholarship databases
• Scholarship provider listings and publicly available award information
• Federal and state scholarship program documentation

Limitations

The database is not exhaustive. Scholarship availability, deadlines, and award amounts change frequently. We update listings periodically, but you should verify details directly with the scholarship provider before applying. We do not guarantee that any listed scholarship is currently accepting applications.

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ROI Calculator

What it calculates

Compares the total cost of a degree (tuition, fees, living expenses, opportunity cost of foregone earnings) against the projected increase in lifetime earnings for your chosen field of study.

Formula

The calculator subtracts total degree cost from the projected earnings premium (the difference between median earnings with and without the degree, projected over a working career). It accounts for time value of money using a discount rate and models the opportunity cost of years spent in school rather than working.

Data sources

• Median earnings by education level and field — Bureau of Labor Statistics Occupational Outlook Handbook
• Earnings by institution and program — College Scorecard (Department of Education)
• Tuition and fee data — IPEDS (Integrated Postsecondary Education Data System)
• General inflation and earnings growth assumptions — BLS Consumer Price Index data

Limitations

ROI projections use median earnings, which means half of graduates earn less. Field-of-study earnings vary significantly by region, employer type, and individual career trajectory. The calculator cannot predict your specific earnings outcome. It is a comparison tool for evaluating the relative financial value of different educational paths, not a forecast of your personal return.

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Loan Repayment Calculator

What it calculates

Models your monthly payment, total interest paid, and repayment timeline under each federal repayment plan: Standard, Graduated, Extended, Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Saving on a Valuable Education (SAVE).

Formulas

• Standard: Fixed monthly payment calculated using standard amortization over 10 years
• Graduated: Payments start lower and increase every two years, designed to match rising income
• Extended: Standard amortization over 25 years (available for balances over $30,000)
• IBR/PAYE/REPAYE/SAVE: Monthly payment based on discretionary income (AGI minus 150% or 225% of poverty guideline, depending on plan), with forgiveness after 20 or 25 years of qualifying payments

Data sources

• Repayment plan formulas and rules — Federal Student Aid (StudentAid.gov)
• Federal poverty guidelines — Department of Health and Human Services
• Federal student loan interest rates — Department of Education, updated annually

Limitations

The calculator uses current interest rates and poverty guidelines. Income-driven plan estimates assume stable income growth, which may not reflect your actual earnings trajectory. Capitalized interest, deferment periods, and forbearance are not modeled. For SAVE plan estimates, note that the plan's status may be subject to ongoing legal proceedings — check Federal Student Aid for the latest information.

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Career Salary Explorer

What it shows

Displays salary ranges by career field, comparing earnings for workers with and without a bachelor's or graduate degree. Shows 25th, 50th (median), and 75th percentile wages.

Data sources

• Occupational employment and wage data — Bureau of Labor Statistics (BLS) Occupational Employment and Wage Statistics program
• Earnings by educational attainment — BLS Current Population Survey
• Projected job growth — BLS Occupational Outlook Handbook

Limitations

BLS data reflects national medians. Salaries vary significantly by metropolitan area, employer size, and years of experience. The tool shows what typical workers earn in a field, not what any individual will earn.

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GI Bill Calculator

What it calculates

Estimates Post-9/11 GI Bill and Montgomery GI Bill education benefits based on your service history, benefit tier, and school type (public, private, online).

Data sources

• GI Bill benefit rates and tuition caps — Department of Veterans Affairs
• Monthly Housing Allowance rates — Department of Defense Basic Allowance for Housing (BAH) tables
• Book and supply stipend amounts — VA published rates
• Yellow Ribbon Program participation — VA institutional data

Limitations

Benefit estimates depend on your specific service record and benefit tier (40% to 100%). The calculator uses current-year VA rates, which are updated annually. Housing allowance estimates are based on the school's ZIP code and may change. Yellow Ribbon availability depends on each school's participation and remaining slots. For an official benefits determination, contact the VA or use the VA's own comparison tool.

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Employer Tuition Checker

What it does

Looks up whether a given employer offers tuition reimbursement, tuition assistance, or education benefit programs. Displays reported benefit details including annual caps and eligible program types.

Data sources

• Employer benefit databases compiled from public sources, corporate benefit disclosures, and employee-reported data
• IRS Section 127 guidelines for tax-free educational assistance (up to $5,250/year)

Limitations

Employer benefit programs change without notice. The information shown may not reflect the most recent changes to a company's benefits package. Eligibility requirements (tenure, full-time status, grade requirements) vary by employer. Always verify directly with your employer's HR or benefits department before making enrollment decisions based on expected tuition assistance.

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Time-to-Degree Calculator

What it calculates

Estimates how long it will take to complete a degree based on your enrollment status (full-time, part-time, accelerated), existing transfer credits, and the typical credit requirements for your program type.

Data sources

• Standard credit requirements by degree type — institutional catalog data
• Average credits per semester by enrollment status — NCES (National Center for Education Statistics)
• Transfer credit acceptance patterns — aggregated institutional data

Limitations

Actual time to degree depends on course availability, prerequisite sequences, transfer credit evaluation by your specific institution, and your ability to maintain the assumed course load. Program requirements vary by school and major. The estimate assumes consistent enrollment without interruptions.

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Aid Letter Decoder

What it does

Breaks down a financial aid award letter into plain-language categories: free money (grants and scholarships), money you earn (work-study), and money you borrow (loans). Highlights the net cost you are responsible for and flags items that are often misunderstood (e.g., unsubsidized loans listed as "aid," Parent PLUS loans included in the package).

Logic

The decoder categorizes each line item based on standard financial aid terminology and federal aid types. It applies known categorization rules: Pell Grants and institutional scholarships are free money; Federal Work-Study is earned; Direct Subsidized, Unsubsidized, and PLUS Loans are borrowed money with interest.

Limitations

Some schools use non-standard naming for aid components. The decoder relies on common terminology and may miscategorize an unusual line item. If a result does not look right, contact your school's financial aid office for clarification.

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General Limitations

All tools on this site share these limitations:

• Estimates, not determinations. No online calculator can replace an official financial aid determination from your school's financial aid office or a government agency.
• Not financial advice. Degree Sources provides educational information and estimation tools. We are not financial advisors, and nothing on this site constitutes financial advice. Consult a qualified professional for advice specific to your situation.
• Data currency. Government data, benefit rates, and institutional information change on regular cycles. While we update tools to reflect changes, there may be a lag between a policy change and our update.
• Individual variation. Median figures and general formulas cannot capture the full range of individual circumstances. Your results will depend on factors specific to your situation.

Update Schedule

We review all tool formulas and data sources on an annual cycle aligned with the federal financial aid award year. Updates are also triggered by:

• Changes to federal financial aid formulas or eligibility thresholds
• New or revised legislation (e.g., FAFSA Simplification Act provisions taking effect)
• Annual BLS data releases and College Scorecard updates
• IRS tax table or poverty guideline changes
• VA benefit rate adjustments
• Errors identified through internal review or user reports

If you believe a tool is producing incorrect results, please report it through our contact page. We investigate every report.

For information on our broader editorial standards, see our Editorial Policy. For background on the site and our funding model, see About Degree Sources.