Hinds Today

U.S. Senator Cindy Hyde-Smith (R-Miss.) has joined the effort to reverse recent changes to the Free Application for Federal Student Aid (FAFSA) process that could reduce or eliminate access to need-based student aid for farm families and small business owners. Hyde-Smith is cosponsoring the bipartisan Family Farm and Small Business Exemption Act (S.1237), which would restore an exemption for certain family farms and small businesses under the FASFA.

“The Department of Education’s financial aid application process was supposed to be simplified, but the administration instead has only made things more confusing and, in the case for farm families and small business owners, patently unfair,” said Hyde-Smith.

The net worth of these family farms and small businesses were previously excluded as assets when calculating a student’s financial need to determine federal student aid eligibility. However, beginning with the 2024-2025 academic year, the net worth of these farms and businesses will be treated as an asset and included in the calculation. S.1237, introduced by U.S. Senators Joni Ernst (R-Iowa) and Jon Tester (D-Mont.), would restore the exemption to exclude such net worth from the calculation.

An analysis by Iowa College Aid found that under the new formula, a farm family with an income of $60,000 and a farm of median value would be expected to contribute $41,056 annually toward their child’s education, compared to $7,626 under the previous system. This change could potentially exclude some families from receiving any financial aid at all.

In addition to cosponsoring the Family Farm and Small Business Exemption Act, Hyde-Smith has also requested an investigation into the Biden administration’s error-filled revamp of the FAFSA program. The Government Accountability Office (GAO) has agreed to investigate the matter.

Mississippi universities, colleges, community colleges, and guidance counselors are being affected by ongoing delays in the delivery of FAFSA forms by the U.S. Department of Education. The Biden administration recently announced a further delay in transmitting FAFSA forms to colleges and universities, potentially causing students to forego college because they cannot determine their eligibility for student aid.

To gather feedback on the impact of the new FAFSA program, Republicans on the Senate Health, Education, Labor, and Pensions Committee have established a hotline for students, families, and school officials to provide their experiences and opinions. Feedback can be submitted through the following website: https://www.help.senate.gov/FAFSA.