I am the valedictorian of my class and have an ACT score of 33. I am now searching for colleges and hope to attend a rather prestigious school. Of course, these schools usually come with a big price tag. Most of the schools I’m looking at will meet 100% of demonstrated need. Both of my parents are farmers, and they earn less than $60,000/year. As farmers, however, they both own land (a rather valuable asset). I have been told that farm assets do not count towards financial aid because it is a business expense and farmers are often subsidized by the government. My parents didn’t give a dime to any of my three sisters when they went to college, and even if they decided to chip in, they might not be able to because the farm economy is so unpredictable. Will I receive more aid because my parents are farmers?
You won’t receive more aid because your parents are farmers. If they are self employed farmers, the farm is their business…and the value of that farm business ((which includes the land value) is reported on the financial aid forms.
How did your siblings pay for college? Did they complete the FAFSA and Profile forms? What sort of family contribution did the colleges expect when your sisters attended?
This isn’t news to your family…the same asset would have been in the family when your sisters attended college, right?
Yes, the same assets were in the family. My sisters all went to cheaper public institutions, though. They managed to pay for their college through various in-state scholarships. But I don’t like any of the schools in my state. I know they completed the FAFSA, but I don’t know what they received for need-based aid.
You might not know your sisters’ need based aid…but you can ask what their EFCs were. Just make sure you look at a year when only one sister was in college…if you will,be the only one in college when you go.
Will any of your siblings be in college while you are also in college?
The private universities you want to consider will require you to pay that EFC…or more…because most of those private schools also require the Profile which delves deeper into your finances.
You might want to consider colleges where you will garner significant merit aid. This will not be asset or income dependent.
Try the Harvard NPC. It is easy to fill out. Farm equity is most certainly considered an asset for financial aid at “prestigious” colleges.
https://college.harvard.edu/financial-aid/net-price-calculator
At “prestigious schools” they use CSS Profile to determine aid and they WILL count the value of the farm and the farm equipment. Your parents are probably also depreciating equipment on their taxes. Those deductions will get “added back in” to their income. You probably will not get much/any aid.
@curmudgeon I believe Curmy faced this when his DD was applying for undergrad. He owns a ranch. So his DD went to an undergrad that gave her a huge merit scholarship. Worked out very well. Last spring she graduated from Yale Med School (congrats to Mudgette!)
So, be sure to also apply to some schools that will give you huge merit for your stats.
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I have been told that farm assets do not count towards financial aid because it is a business expense and farmers are often subsidized by the government.
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No. Not true.
Farms may not count on FAFSA, but they will count on CSS.
Anyone know how “farm subsidies” are handled on FAFSA or CSS?
Here is a search thread for farm assets from CC which may provide some more context:
Farm subsidies are income on a Schedule F. I don’t believe subsidies are handled differently than other income on either FAFSA or CSS.
Farm assets will not “count” on FAFSA as long as one lives on the farm. I’m drawing a blank on whether that is true for CSS.
Farms do count on CSS Profile. There is a supplemental that you submit if you own a farm/ranch.