Hinson Helps Introduce Legislation Ensuring Access to Higher Education for Farmers, Small Business Owners’ Children

February 13, 2025

Washington, D.C. - Congresswoman Ashley Hinson (IA-02) is a cosponsor of the Family Farm and Small Business Exemption Act, which would restore the decades-old standard that exempts the value of assets found on family farms and small business from being assessed as part of a family’s net worth when applying for the Free Application for Federal Student Aid (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.” – Congresswoman Ashley Hinson

Background:

In July 2024, provisions from the FAFSA Simplification Act altered the federal formula for determining student aid, disadvantaging family farms and small business families by including non-liquid assets—like farmland and equipment—into the calculation. This bill corrects this ridiculous inequity and levels the playing field for these students and their families.

The Family Farm and Small Business Exemption Act is supported by 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, Southwestern Community College, Dordt University, Iowa Association of Financial Aid Administrators, Drake University, Kansas Independent College Association, Kansas Wesleyan University, Kansas State University, Pennsylvania Association of Financial Aid Administrators, Washburn University, National Milk Producers Federation, United Egg Producers, Iowa Farm Bureau, American Farm Bureau, Land O’Lakes, Iowa Turkey Federation, and Farm Credit Council.

Full bill text can be found here.

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