Q: Why are farm families facing potential hardship with federal student aid?

A: In its years-long march to cancel student debt, the Biden administration dragged its feet to release the new Free Application for Federal Student Aid, commonly known as FAFSA. I’m keeping up the pressure on the Department of Education to do its job: follow the law and serve the American people.

Earlier this year, I started hearing concerns from both private and community colleges in Iowa that proposed rules to implement bipartisan legislation updating FAFSA could undermine enrollment and undercut eligibility for financial assistance for many Iowa families. Specifically, families whose assets are tied up in a small business or farm would be impacted. For decades, FAFSA excluded non-liquid assets, such as farmland or farm equipment, from being reported as a family’s income. So, businesses and farming operations with less than 100 employees didn’t need to list these assets toward a family’s adjusted gross income. The updated FAFSA rules written by the Biden administration could put farm kids on the chopping block to qualify for financial assistance to go to college.

What’s more, the administration was so laser-focused on canceling student debt that it also has dropped the ball on helping student borrowers navigate the repayment process. After being paused for three years, repayments started up again in October. However, loan service providers don’t have access to data they need to process loans and student borrowers can’t get answers to basic questions. It’s a mess. That’s because even after the U.S. Supreme Court declared its attempt to transfer billions of dollars of debt unconstitutional, the Biden administration kept trying to go around Congress and the Supreme Court, diverting staff time from implementing the law to circumventing it. I’m leading efforts to push back on the administration’s overreach that would require taxpayers to pay off the value of other borrowers’ loans. As it stands now, effectively no one can get timely answers from the administration about the repayment process.

To make matters worse, the administration delayed release of FAFSA for the upcoming school year. Typically, current and prospective students can fill out the FAFSA form in October. This process informs students and their families whether they qualify for Pell Grants or other forms of student aid. As we approach the New Year, students, families and colleges are still in the dark. I’m leading a bipartisan push to kick the Education Department into high gear. Stop working on canceling debt and start working on getting answers to students and families.

Q: How are you working to ensure farm kids don’t get the short end of the stick?

A: Although delayed, the updated FAFSA soon will be available for prospective and returning students to fill out for the upcoming school year. Unfortunately, changes to the federal formula would treat farmland and equipment like cash in a savings account. These assets can’t simply be cashed out like investments. Family farms and small businesses take on debt to finance their operations from one year to the next. This is a way of life in Rural America that’s commonly known as cash-poor, asset-rich. I sent a letter to the Education Department to make sure the bureaucrats get educated about the bottom lines of farm families. I want to ensure family farms—a family’s home—aren’t lumped in with for-profit “investment farms.” In other words, one is the lifeblood and livelihood of a family whose parents live on and operate day in and day out. The other is not. I’m glad to report the FAFSA will ask students to list family assets only in “investment farms.” I’m waiting to dig into the details to ensure the Biden administration sticks with its existing definition to ensure farm kids have access to federal financial aid. Meanwhile, I’ll continue leading efforts to provide transparency and better information to students so they make wise decisions about their borrowing needs.

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