Cedar Rapids Today

Congresswoman Ashley Hinson has joined as a cosponsor of the Family Farm and Small Business Exemption Act. This legislation aims to reinstate an older standard that excludes the value of assets on family farms and small businesses from being considered in a family's net worth when applying for federal student aid through FAFSA.

"Under current law, many family farmers are unfairly punished through reduced financial aid for their college-age kids. This jeopardizes educational opportunities for students in rural America. I am cosponsoring the Family Farm and Small Business Exemption Act to ensure Iowans can afford higher education and invest in their children’s future without putting their livelihoods at risk," stated Congresswoman Ashley Hinson.

The need for this bill arose after changes made by the FAFSA Simplification Act in July 2024, which modified the federal formula used to determine student aid eligibility. These changes included non-liquid assets such as farmland and equipment, impacting families with farms and small businesses negatively. The proposed legislation seeks to address this issue by providing fairer conditions for these families.

The bill has garnered support from various organizations including the State Higher Education Executive Officers Association, Kansas Farm Bureau, National Association of Independent Colleges and Universities, Association of Public & Land-Grant Universities, SchoolHouse Connection, National Association of State Student Grant and Aid Programs, American Council on Education, Iowa Student Loan, Iowa College Access Network, University of Iowa, Iowa State University, University of Northern Iowa, Community Colleges for Iowa among others.