FAFSA Fix for Farms

College aid rules could soon stop treating tractors like trust funds.

The rundown: Legislators reintroduced a set of bills that would exempt family farms from having to include farm assets as part of their net income when their kids apply for college aid.

A bipartisan group of representatives introduced the Family Farm and Small Business Exemption Act. The bill would amend a law that requires families to report assets in FAFSA applications.

A bipartisan group of senators introduced a similar bill that would also exempt the value of businesses with less than 100 employees. 

Loan aid limits: Legislators said that without an exemption, students are often denied federal loan aid due to assets their family holds, like farm equipment. Crop prices hitting multi-year lows have already caused concern for college affordability among farming families.

Multiple farm groups acknowledged that money tied up in farm assets should not penalize families. And the issue is a matter of choosing college vs livelihood.

Soundbite: “When young people from these families are applying for higher education financial aid, the assets tied up in the family farm or the small business should not count against them. Congress should work to make life easier, not harder, for these dedicated families and students.” — Kansas Representative Tracey Mann