ERIC Number: ED336220
Record Type: Non-Journal
Publication Date: 1991-Mar
Reference Count: N/A
Treatment of Farm Families under Need Analysis for Student Aid. Final Report.
National Computer Systems, Inc., Arlington, VA.
In response to Congressional request, this report compares the treatment of student financial aid applicants from farm families and non-farm families under two need-analysis formulae. Both the need-analysis methodology for Pell Grants and the Congressional Methodology (CM) for other federal aid calculate ability to pay as a function of income and net assets. Data samples included over 40,000 Title IV applicants seeking federal student aid in both 1987-88 and 1988-89. Also examined were selected literature on farm finances, definitions of farm income by the Internal Revenue Service (IRS) and U.S. Department of Agriculture, cross-year changes in reported income and assets, and farm borrowing restrictions. This report concludes that the current system of need analysis for federal student aid is reasonably fair and does not systematically treat farm families differently from other groups. However, minor or random discrepancies may arise from the large cross-year variability in the financial condition of some farm families, from IRS income definitions, and from borrowing limits on farmers. The Pell formula provides a higher asset protection allowance for farms than for other businesses. On the other hand, the CM formula provides an age-based asset reserve. This report includes 16 bar graphs, explanations of research methodology, and suggestions for identifying farmers prone to great variability in income. (SV)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Department of Education, Washington, DC. Office of Planning, Budget, and Evaluation.
Authoring Institution: National Computer Systems, Inc., Arlington, VA.
Identifiers - Laws, Policies, & Programs: Pell Grant Program