Summary

Excludes two types of family-owned assets from federal student financial-need calculations: a family farm where the family lives, and a family-owned small business with up to 100 full-time (or FTE) employees. The exclusion applies when calculating need for award years that begin on or after the law is enacted, so those assets will not raise a student’s expected family contribution for those award years.

Key Points

• Excludes a family farm where the family lives from assets counted in federal student financial-need calculations.
• Excludes a family-owned small business with up to 100 full-time or full-time-equivalent employees from asset counts.
• Applies to need analyses for award years beginning on or after the law’s enactment.
• May lower a family’s expected family contribution and raise eligibility for need-based aid (grants, subsidized loans).
• Does not change other asset rules—only the two specified asset types are exempted.
• Requires updates to Department of Education and campus financial-aid procedures and likely some verification documentation.
• Does not appropriate funds or create a new spending program; it is a technical change to need analysis.