Family Farm and Small Business Exemption Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill aims to restore an exemption for family farms and small businesses when determining eligibility for federal student aid. Currently, the value of these farms and businesses is considered as an asset when calculating a student’s financial need. The bill would exclude the net worth of family farms (where the family lives) and small businesses (with up to 100 employees owned by a family) from this calculation. This change would help ensure that students with these types of businesses are not unfairly penalized when applying for financial aid.
Key provisions
- Excludes the net worth of family farms from asset calculations.
- Excludes the net worth of small businesses (under 100 employees) owned by a family from asset calculations.
- Applies to need analysis conducted under part F of title IV of the Higher Education Act.
- Effective for award years beginning after the bill’s enactment date.
- Specifically amends Section 480(f)(2) of the Higher Education Act.
Who is affected
- Students applying for federal student aid
- Family farms
- Small businesses (under 100 employees)
- Families owning family farms and small businesses
Notable changes
- Reverses a prior change to the FAFSA that included the net worth of family farms and small businesses in asset calculations.
- Restores the previous exemption for these types of businesses.
Bill text
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