Grassley, Ernst Work to Protect Farm Families’ Access to Higher Education

WASHINGTON – Sen. Chuck Grassley (R-Iowa), a lifelong family farmer, joined Sen. Joni Ernst (R-Iowa) and Michael Bennet (D-Colo.) in introducing bipartisan legislation to protect farm families’ access to higher education. The Family Farm and Small Business Exemption Act would amend the FAFSA Simplification Act to restore the original exemption of non-liquid, farm and small business assets when determining a family’s FAFSA eligibility.  

“Farm assets can’t be cashed out in the same way traditional investments can,” Grassley said. “Last Congress, I worked with the Department of Education to ensure the FAFSA asset test is only applied to investment farms, not family farms. Our bipartisan legislation would codify this guidance to ensure farm kids and other small business operators get a fair shake when applying for need-based financial aid.” 

“No one should have to sell off the farm – or their small business – to afford college. As a farm kid myself, I know the enormous impacts grants and financial aid have on rural students’ decision to go to college,” Ernst said. “I’m fighting for Iowa families, so unfair policies don’t hold them back from investing in their child’s education.” 

Additional cosponsors include Sens. Roger Marshall (R-Kan.), Jim Justice (R-W.Va.), Jerry Moran (R-Kan.), John Hoeven (R-N.D.), Mike Rounds (R-S.D.), John Boozman (R-Ark.) and Thom Tillis (R-N.C.). 

Download audio of Grassley discussing the bill HERE.  

Find bill text HERE. 

Background:

Under the original FAFSA contribution formula, the expected family contribution didn’t factor in the non-liquid assets of family farms and small businesses with fewer than 100 employees. However, the 2020 FAFSA Simplification Act, which went into effect last year, created a new formula that didn’t explicitly exempt family farms and small businesses from declaration.

The value of a farm family’s assets – including land, buildings, livestock, unharvested crops and machinery – could total millions of dollars, but the family’s annual salary is significantly less. Per Iowa College Aid, if the value of family farms is included in the FAFSA asset test, a family making $60,000 a year could face over $41,000 in annual college tuition costs, compared to $7,600 previously. 

Grassley has voiced strong concerns about the new FAFSA contribution formula’s impact on Iowa families. An overview of Grassley’s FAFSA-related efforts follows: 

• Q&A: Botched FAFSA Roll-Out 
• Grassley and Ernst Meet With Education Department about FAFSA Farm Reporting Requirements 
• Grassley and Smith Op-ed: College Costs are Skyrocketing. Let’s Help Students Bring Them Down. 
• Grassley & Ernst Seek Clarification On FAFSA Asset Question 
• Grassley and Ernst Release FAFSA Factsheet 
• Grassley, Cassidy, Foxx Seek Investigation Into Damaging FAFSA Delays 
• Q&A: Farm Kids Deserve Fairness 
• Grassley: Department Of Education Must Straighten Out FAFSA 

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