Simplifying government forms always seems like a really good idea, but in this instance, it could end up making college less affordable for rural Americans.
Farm Bureau Director of Government Affairs Dustin Sherer says an attempt to simplify the Free Application for Federal Student Aid, or FAFSA, process came in an omnibus bill passed at the end of 2023, but if it sticks, farm families may find it more difficult to qualify for financial aid.
“It included a smaller bill called the FAFSA Simplification Act. 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. The change means it could 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. 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.”
Sherer says some members of Congress are taking steps to correct the error.
“There’s been legislation introduced in both chambers to reinstate the exemption. 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, Sherer encourages you to reach out to your elected officials and ask them to co-sponsor those bills.
Source: NAFB News Service
