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).