Whether you’ve put your kids through college or gone through it yourself, it’s a widely known fact that the Free Application for Federal Student Aid (FAFSA) process can be very stressful. Unfortunately, it looks like that process could now create even more of a financial burden for farming families with the passing of some new legislation. Dustin Sherer, Director of Government Affairs for the American Farm Bureau, said an important change to the Free Application for Federal Student Aid came in an omnibus bill that passed at the end of 2023.
“It included a smaller bill called the FAFSA Simplification Act,” Sherer said. “The goal of the bill was to shorten the actual FAFSA form. Previously, there was an exemption in place for families who owned farms or small businesses, so that there was no asset test when those kids were applying for financial aid. But that change with the FAFSA Simplification Act got rid of the exemption.”
Families with an adjusted gross income over $60,000 will be subject to the asset test. Sherer said the change means it will cost farm families a lot more money to send their children to college.
“The example that’s been given is for a farm that’s valued at about a million dollars, under the old rules, that family would have been expected to pay about $7,600 towards the education under the old rules,” Sherer said. “Under the new rules, that same family would be responsible for more than $41,000, which essentially would take you out of the Pell Grant and federal and state aid programs and force most people to take out student loans.”
Fortunately, Sherer said some members of Congress are already taking steps to correct the error.
“There’s been legislation introduced in both chambers to reinstate the exemption,” Sherer said. “In the House, Representatives Mann and Panetta have introduced HR 1250, The Family Farm and Small Business Exemption Act. Identical legislation has been introduced in the Senate by Senators Ernst and Tester. So, if you feel strongly about this issue, I would urge you to reach out to your elected officials and ask them to co-sponsor those bills.”
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