Farm Families Could Lose Access to Need-Based Student Aid under New Federal Law
Senators Chuck Grassley (R-Iowa), Joni Ernst (R-Iowa), Michael Bennet (D-Colo.) and Tammy Baldwin (D-Wis.) are raising the alarm that changes to the Free Application for Federal Student Aid (FAFSA) could reduce or even eliminate farm families’ access to need-based student aid that they are currently eligible to receive. The longstanding FAFSA process excludes non-liquid farm assets, such as farmland and equipment, when determining a farm family’s ability to pay for college. However, the FAFSA Simplification Act changes the way a family’s assets, income and debt are calculated. The new scheme doesn’t reflect farms’ unique business models and seasonal income and debt fluctuations.
“Our constituents have expressed concern about how some of these changes will affect their families and are eager for prompt guidance from the Department on how implementation of the FAFSA Simplification Act will affect their participation in federal financial aid programs. These farm families, whose businesses are vital to our states’ communities and economies, need tailored guidance to respond to their unique business model,” the senators wrote in a letter to the Department of Education.
An analysis by Iowa College Aid found that a farm family with an adjusted gross income of $60,000 would be eligible for $7,626 in aid. Under the new system, that aid could be cut to zero depending on how much farmland a family has. The prior formula only counted a family’s income off of that land, rather than its value on paper. Iowa College Aid’ analysis can be found HERE.
“Rural families should not be disadvantaged by inadequate or absent guidance from the Department on how the FAFSA Simplification Act will affect their participation and benefits from federal financial aid programs,” the senators continued.
“The FAFSA Simplification Act will make postsecondary education more affordable and accessible to many Iowans. However, treating family farms and small businesses as an asset in the needs analysis formula may, unfortunately, make some Iowans ineligible for federal or state need-based financial aid. We applaud Senator Grassley and his colleagues for bringing attention to this issue and encouraging the U.S. Department of Education to support students from families with family farms or small businesses in their pursuit of postsecondary education,” said Dr. Mark Wiederspan, Executive Director of Iowa College Aid.
Read the senators’ letter to the Department of Education HERE.
