Ernst Work to Fix FAFSA Fiasco for Farm Families Gains Support

WASHINGTON – In light of a new report revealing that it will take the Department of Education well into 2027 to complete the implementation of the new Free Application for Federal Student Aid (FAFSA), U.S. Senator Joni Ernst’s (R-Iowa) work to fix this fiasco for farm families is gaining momentum with the endorsement of 24 education and agriculture groups.

After the new formula changed a farm family’s expected annual contribution to their child’s education from $7,626 to $41,056, Ernst’s bipartisan Family Farm and Small Business Exemption Act would reverse these changes that could reduce or even eliminate access to need-based student aid for farm families.

“As students across the country filled up their backpacks and picked up their pencils to head back to school this fall, too many families were left out of accessing financial aid. Chalk it up to poor leadership from the Biden-Harris administration and a Department of Education that is out of touch with rural America!” said Ernst. “There can be no more delay for fixing the Biden-Harris FAFSA fiasco for next year. My solution would support farm families trying to responsibly finance their child’s education, instead of forcing them to sell off the farm. Class is back in session, and the Department of Education must turn their homework in on time so students don’t miss out due to bureaucratic bungling.”

The new Government Accountability Office (GAO) report revealed major errors made during the so-called “simplified” FAFSA rollout that led to a 9% decrease in 2024 FAFSA submissions for high school seniors, including that:

• 74% of incoming calls for support went unanswered in the first five months of the new form,
• Graduate students were being incorrectly informed that they are eligible for Pell Grants,
• It took families an average of five days to complete a form that the Department claimed would take 15-20 minutes, and
• Students who submitted a paper FAFSA did not receive confirmation for more than seven months.

To end the series of fumbles, here's what others are saying about Ernst’s Family Farm and Small Business Exemption Act:

"On the heels of a year where FAFSA was neither ‘better’ nor ‘simpler,’ Iowa families are bracing for more delays, disruptions, and unintended consequences as a result of the 25-26 financial aid processing season. Federal Student Aid and Congress have failed to address key issues - such as how assets related to small business ownership and family farms are counted on the FAFSA - leaving many hard-working Iowans unsure if they'll have the resources needed to pursue education and training after high school,” said Rob Miller, President of Iowa College Access Network. “And while much attention has been focused on the new December 2024 FAFSA release date, big concerns remain over FSA's ability to quickly and correctly process the forms and share accurate data with colleges for packaging." 

“Students decided not to attend Iowa Central Community College this year due to the newly imposed family asset in the Student Aid Index used for financial aid. If they have to take out loans for their education, many of our students will go right into the workplace or start working on their family farm instead of pursuing a degree,” said Jim Kersten, Vice President of Government Affairs at Iowa Central Community College in Fort Dodge, Iowa. “We faced many challenges following these changes including FAFSA completion delays, students not having FAFSA results in time to make their college decision, schools unable to make financial aid offers, and FASFA corrections not made until August. In addition, some parents with multiple children reached out to ask why their aid was so different from what their older children had received in years past. Their income was basically the same, but they no longer qualified for need-based aid which includes work-study jobs and subsidized loan funds. I am so pleased Senator Ernst is working together in a bipartisan manner with Senator Tester and others to get this important legislation approved as soon as possible.”

“The second straight year of declining farm income only highlights the problems with changes that were made to asset calculations in the FAFSA Simplification Act,” said Dustin Sherer, Director of Government Affairs at the American Farm Bureau Federation (AFBF). “There are land rich, cash poor farmers who made no money this past year, yet their children won’t qualify for federal financial student aid. AFBF appreciates Senator Ernst’s focus on trying to correct this problem.”

"Farm Credit commends Senators Ernst and Tester for their bipartisan work to rectify an unintended consequence of prior legislation impacting agricultural families," said Todd Van Hoose, President and CEO of Farm Credit Council. "It's essential that we provide our farm and ranch families with the financial aid and resources they need to support the next generation of agricultural leaders."

Background:

The FAFSA form is typically accessible to students on Oct. 1 of each year to allow ample time to submit financial information before state and school-specific deadlines for aid eligibility. However, due to incomplete planning measures, the Department of Education released last year’s version three months late, drastically condensing the timeline for families to submit for aid. To make matters worse, the late rollout came with additional challenges, including changes that could reduce or eliminate access to need-based student aid for farm families and small business owners.

To ensure more Iowa families are not left out, Ernst has conducted critical oversight, demanded answers on behalf of agricultural communities, and worked to get input directly from impacted Iowans.

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