Grassley and Ernst Seek Clarification on FAFSA Asset Question
Iowa senators are teaching the Education Department how farm families operate
Sens. Chuck Grassley (R-Iowa) and Joni Ernst (R-Iowa) are pressing the Education Department for clarity regarding Question 22 on the new Free Application for Federal Student Aid (FAFSA). The senators are specifically concerned that the way the agency chooses to ask this question will force students to list the net worth of family farms as assets. Current ambiguities could cut off farm kids from needed financial aid and make it less feasible for them to attend college.
“This question fundamentally misunderstands how farm families operate, as the stream of revenue for crops and livestock varies significantly year-over-year, and assets cannot be cashed out to support a loan in the same capacity as traditional investments,” the senators wrote in a letter to Education Secretary Miguel Cardona.
“We reiterate our concern with the nature of this question, and the lack of insight on how the adjusted formula will impact students from agriculture backgrounds. With this in mind, the Education Department has a responsibility to provide these families with significant transparency into how this requirement will impact student aid estimates,” they continued.
Background:
Changes to Question 22 stem from the FAFSA Simplification Act, legislation Congress enacted in 2020 to streamline students’ access to federal aid. Grassley has long voiced concerns about how the Department will implement the law’s asset calculation language, as it fails to recognize farms’ unique business models and seasonal income and debt fluctuations. The Education Department released the new FAFSA this year. However, it has yet to issue comprehensive, transparent guidance about the asset question and impacts for families. The residual uncertainty is adding to challenges caused by the agency’s botched FAFSA rollout, which has been riddled with glitches and delays.
The value of a farm family’s assets – land, buildings, livestock, unharvested crops and machinery – could total millions of dollars. Per Iowa College Aid, under the new FAFSA formula, a family making $60,000 a year could face over $41,000 in annual college tuition costs, compared to $7,600 previously. Grassley and Ernst are demanding resources for families, information on the question’s development and assurance the new asset calculation formula will not punish students from agricultural or small business backgrounds.
Joining the Iowa senators are Sens. Jon Tester (D-Mont.), Pete Ricketts (R-Neb.), Thom Tillis (R-N.C.), Jim Risch (R-Idaho), Cindy Hyde-Smith (R-Miss.), Deb Fischer (R-Neb.), Roger Marshall (R-Kan.), Roger Wicker (R-Miss.), Mike Crapo (R-Idaho), John Boozman (R-Ark.), Kevin Cramer (R-N.D.) and John Hoeven (R-N.D.).
Read the letter HERE.
