Family Farm Questions About Student Financial Aid Assistance
Q: Is there really a chance a farm family can qualify
for student financial aid?
A: Yes, ANY farm family should be able to create eligibility
for AT LEAST low interest federal student loans by filing
the Free Application for Federal Student Aid (the FAFSA).
And some farm families may qualify for additional aid depending
on the measure of their financial strength as calculated from
FAFSA data. Keep in mind that the value of a family farm in
which a family lives is NOT to be reported on the FAFSA.
Q: Are children of farm families treated differently
than any other children?
A: No. In fact, farm families who live on the family farm
are able to exclude farm-related assets when reporting the
family's financial strength on the FAFSA.
Q: How is a "family farm" different than an "investment
farm"?
A: A family farm is considered the principal place of residence
and the family claimed on Schedule F of the federal income
tax return that it "materially participated in the farm's
operation." In certain instances, however, even if the family
farm is incorporated and the family files a corporate return
instead of IRS Schedule F, the value and debt of the farm
are not reported on the FAFSA. In such cases, the applicant
must show evidence that family members own all shares of stock
in the corporation and that those family members also reside
on the farm.
Q: How should the net worth of an investment farm be
reported?
A: When reporting the net worth of an investment farm, the
family should calculate the current market value of the farm
land, buildings, machinery, equipment, livestock, and inventories
and subtract the unpaid mortgage and related debts, as well
as any loan for which farm assets were used as collateral.
Note that when current net worth for a farm is reported, it
must be the amount for which the farm could be sold as of
the date the application is signed. Also, if the student or
parent is not the sole owner of the business/farm, he or she
should report only his or her share of the net worth.
Q: Can financial aid eligibility be adjusted for a bad
farming year?
A: Yes, a financial aid office may ask for several years of
tax returns and/or an estimate of the current year tax return
figures. Financial aid offices may be able to use this information
to adjust aid eligibility via professional judgment. The best
thing to do is contact the financial aid office to speak with
a financial aid administrator about appeal options.
Q: Is there a way to estimate our expected family contribution?
A: Yes, by entering information in a web-based program that
calculates an estimated expected family contribution (EFC),
the measure of family financial strength that colleges use
to determine aid eligibility. No personal identifying information
is to be entered on the website, found at: www.finaid.org/calculators/quickefc.phtml
Q: Is our income information disclosed on the Internet
secure?
A: Yes, as long as families utilize reputable websites that
take steps to ensure privacy and security. In addition, EFC
calculators do not require you to submit any personal identifiers.
Q: Do I have to send the financial aid office copies
of tax return information?
A: Possibly. But do not send any tax forms or business information
unless you are instructed to do so by the college. If information
is required, the college will ask you to supply it. Be sure
to respond quickly and accurately to all requests. College
financial aid offices are responsible for administering federal,
state, and institutional student aid programs, thus maintaining
the right and responsibility to request verification of any/all
data submitted on the financial aid application.
Q: Does information submitted to the financial aid office
remain confidential?
A: Financial aid offices are very aware that personal financial
information is a sensitive subject and a private matter. As
such, financial aid professionals maintain an ethical commitment
to respect the dignity and protect the privacy of students
and assure the confidentiality of student records and personal
circumstances. Financial aid offices also encourage families
to set up private counseling appointments.
Q: How much financial aid can a farm family expect to
receive?
A: Financial aid eligibility depends on the cost of the college, the financial strength of the family, and other variables. Incoming freshman should be eligible for at least $5,500 in student loans and parents could secure even more in Parent PLUS loan eligibility. At Purdue-West Lafayette, the estimated total cost of attendance is estimated online at www.purdue.edu/dfa/all/cost.php.
Q: How can students "work their way" through college?
A: Unfortunately, as college costs have risen the days
of "working your way through college" are over. With current
college costs, a student would have to make over $50 per hour
as a part-time worker to pay for all college costs. Still,
students can make significant contributions toward college
expenses by working full-time during the summer months and
obtaining part-time employment (12-15 hours per week) while
attending college.
Q: How can a student locate part-time employment opportunities?
A: Students can learn about student employment opportunities
at the college they plan to attend. Federal Work-Study, a
need-based form of financial aid, might be part of a financial
aid package. The designation of being "work-study eligible"
can make a student a little more employable because a portion
of wages earned are subsidized by federal aid funds. But ANY
student can find student employment opportunities. At Purdue-West
Lafayette, all student employment opportunities are maintained
in a searchable database on the DFA's website .
Q: How can parents arrange a financial aid counseling
session?
A: Contact the college of choice. At Purdue-West Lafayette
you may call 765-494-5050 from 8:00 AM to 5:00 PM Monday through
Friday to speak with a financial aid counselor by phone or
to arrange for a sit-down appointment. You may also stop by
Schleman Hall Room 305 and speak with a counselor on a first-come,
first-served basis Monday, Tuesday, Wednesday, and Friday
9:00 AM to 5:00 PM (or Thursday 1:00 PM to 5:00 PM).