Bipartisan Efforts Aim to Revise Student Aid Rules for Farming Families

Bipartisan Efforts Aim to Revise Student Aid Rules for Farming Families

Legislators from America’s agricultural heartland are joining forces to propose vital changes to federal student aid legislation, aimed at assisting children from farming families in accessing educational funding. This initiative involves Senators Joni Ernst (R-Iowa) and Michael Bennet (D-Colo.), alongside Representative Tracey Mann (R-Kan.), who are championing the Family Farm and Small Business Exemption Act.

The Issue with Current Federal Policies

Recently, lawmakers have expressed concerns that the current household contribution calculation used in the Free Application for Federal Student Aid (FAFSA) does not accurately reflect the financial realities of farming families. They argue that this system fails to account for the uniqueness of agricultural assets, which often differ from more liquid assets owned by non-agricultural families.

Understanding FAFSA

FAFSA is a crucial financial aid application that students typically access on October 1 each year. This application provides ample time for students to submit their financial information before the looming deadlines of state and school-specific financial aid. The bipartisan bill aims to reform this process to better suit the needs of those in rural communities.

Key Features of the Family Farm and Small Business Exemption Act

The proposed legislation seeks to exempt farms and small family businesses from financial considerations outlined in the Higher Education Act of 1965. This change would create a more accurate assessment for students from rural areas seeking federal aid.

One significant component of the act involves amendments to the FAFSA Simplification Act, which would reestablish the original exemption that includes farmland, machinery, essential operational materials, and small businesses with fewer than 100 employees. This exemption would prevent these assets from being counted against students’ eligibility for financial aid.

Voices from the Heartland

Senator Ernst, drawing on her own experiences as a farm kid, highlighted the critical impact that grants and financial aid can have on rural students’ educational choices. “No one should have to sell off the farm—or their small business—to afford college. I’m fighting for Iowa families, so unfair policies don’t hold them back from investing in their child’s education,” she stated, emphasizing the need for reform.

In February 2024, Ernst, along with other legislators including her Iowa colleague Senator Charles Grassley, reached out to Education Secretary Miguel Cardona, expressing their growing concerns about the adequacy of current FAFSA policies. They feel that their inquiries have largely gone unanswered.

The Flaws in the Current FAFSA Application

Lawmakers criticize Question 22 on the FAFSA, which requests information about the net worth of a family’s business operations. They argue that the current metric inaccurately assesses how agricultural revenue works and the variability of income that can differ year to year.
“[A]ssets cannot be cashed out to support a loan in the same capacity as traditional investments,” the letter from these lawmakers claimed.

A Call for Change

Senator Ernst’s recent statements indicate a clear intent to reform the qualification formula for FAFSA, aiming to level the playing field for America’s agricultural families in securing educational aid. Representative Mann, who represents a largely agricultural district, echoed this sentiment, noting that many farm families require transparent and equitable FAFSA policies.

“Across Kansas’ Big First and the country, net farm income has dropped by nearly 25% since 2022,” Mann revealed. He pointed to the compounded challenges posed by record inflation and rising operational costs that threaten the viability of family farms and small businesses.

The Benefits of the Proposed Changes

Mann elaborated on the importance of reforming these policies: “When young people from these families apply for higher education financial aid, the assets tied up in the family farm or small business should not count against them. Congress must work to ease the burden for these dedicated families and students.” He emphasized that the bill could restore opportunities for students while also protecting the American dream for all students, irrespective of their family backgrounds.

A Brighter Future for Rural Students

As these lawmakers advocate for legislative change, the discourse emphasizes the need for policies that embrace the unique challenges faced by agricultural families. With the Family Farm and Small Business Exemption Act, there is hope for a more equitable path to education for countless rural students across the United States.