The Delayed FAFSA Rollout: A Financial Burden on Farming Families
3 min read
The Free Application for Federal Student Aid (FAFSA) is a crucial financial aid tool for students and their families in the United States. However, the delayed rollout of the simplified FAFSA system has caused significant challenges for students, particularly those from farming backgrounds. This article explores the impact of the delayed FAFSA rollout on farming families and the concerns raised by senators in a bipartisan letter to the Biden administration.
The FAFSA Simplification Act was signed into law on December 27, 2020. Yet, the Department of Education (Ed) released an incomplete and confusing ‘soft launch’ of the new form three months delayed from the typical October 1 release date. Moreover, Institutional Student Information Records (ISIRs) were not sent to colleges and universities until early March, creating an untenable timeline for students to review aid offers and compare their school options.
The senators’ letter expressed concern about the impact of the delayed FAFSA rollout on students and families, particularly those from farming and small business backgrounds. They noted that Question 22 on the FAFSA form, related to student assets, requires each student to report the net worth of their family’s businesses or for-profit agricultural operations. However, the senators argue that this question fundamentally misunderstands how farm families operate.
Farming families face unique financial complexities. The stream of revenue for crops and livestock varies significantly year-over-year, and assets cannot be cashed out to support a loan in the same capacity as traditional investments. The reported assets, including fair market value of land, buildings, livestock, unharvested crops, and machinery, can range into millions of dollars. The projected declines in revenue for nearly every agricultural sector for 2023 harvest indicate that the Department of Education lacked critical insight needed to develop this asset reporting requirement.
The senators provided an example of a farming family with a $60,000 annual income and $1 million in farming assets. Previously, this family paid $7,626 annually toward their child’s tuition. Under the new formula, the same family would have to pay up to $41,056. In this economy, asking Iowa farm families to pay five times more to send their kids to college is a nonstarter.
Senator Joni Ernst, a farm kid herself and a recipient of a Pell Grant, is leading the charge to force the Biden Department of Education to reevaluate their FAFSA form and ensure that folks of all backgrounds can pursue higher education if they choose to do so. Rural students will not be pushed to the side and ignored under her watch.
The letter asks who the Department of Education consulted in the farming community about the regulation and whether a discussion took place about how it would impact families. The senators also asked if the Department of Education will conduct an in-depth impact analysis of data throughout the 2024-2025 application process to understand the year-over-year impact of transitioning from the EFC formula to the SAI formula.
The delayed FAFSA rollout is just one of the many challenges farming families face. The Biden administration’s failure to track Chinese ownership of US farmland is another concern. The Education Department’s delayed rollout of the simplified FAFSA system has made it more difficult for students to apply to school and could send the financial contributions of farming families skyrocketing.
In conclusion, the delayed FAFSA rollout has created significant challenges for students, particularly those from farming backgrounds. The senators’ bipartisan letter to the Biden administration highlights the concerns of farming families and calls for the Department of Education to reevaluate their FAFSA form and ensure that all families can pursue higher education if they choose to do so. The rural students will not be ignored under Senator Joni Ernst’s watch. The delayed FAFSA rollout is just one of the many challenges farming families face, and it is crucial that the government listens to their concerns and takes action to support them.
