Ernst Fights for Farm Families Cut Out of College Aid

Press Release

"We write today to share our concerns specifically in reference to Question 22--Student Assets, which requires each student to report the net worth of their family's businesses or for-profit agricultural operations. This question fundamentally misunderstands how farm families operate, as 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.

These assets can range well into the millions of dollars, with the price of a combine harvester alone often exceeding $400,000. This, in combination with projected declines in revenue for nearly every agricultural sector for the 2023 harvest, indicates Ed lacked critical insight needed to develop this asset reporting requirement.

An estimate from Iowa College Aid shows that under the previous Expected Family Contribution (EFC) formula, a family with a combined $60,000 annual income and $1 million in associated farming assets would be expected to contribute $7,626 annually towards their child's tuition. Under the new formula, the Student Aid Index (SAI), that number will balloon to a $41,056 contribution. We reiterate our concern with the nature of this question, and the lack of insight on how the adjusted formula will impact students from agriculture backgrounds."

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