Financial Aid, Family Farms & Small Business

The school financial aid system is a great friend of farmers and small entrepreneurs. The FAFSA, Free Application for Federal Student Aid has made specific provisions in the form in order to accommodate the unique financial situation of farmers and small entrepreneurs.

The farmers have to farm assets if they are working on the farm and live report on. Some of these assets

Country
Building
Tractors, combines and other equipment
Animals
Crops
and farm accounts

If yourFamily is only an investor in a farm and did not participate actively in its work, you can not leave the farm assets from the financial aid calculations. Farmers must be active farm operators to exclude from their FAFSA.

Small business owners very similar treatment. If your family owns and controls at least 50% of companies employing fewer than 100 full-time or full-time equivalent employees, the value of this transaction is not reported on theFAFSA.

"Your family" does not necessarily mean that your immediate family of Mom, Dad, 2.5 children, and the dog. "Your family can now include any related family members:

Parents
Brothers & Sisters
Cousins
Spouse
Stepparents
and brothers or sisters in-law.

For example, if your father owns 30% of the business, and your uncle owns 30% of the business, and a friend of the family owns 40%, then your family owns 60% and may be considered for small businessesExclusion.

Just like the family farm exclusion are all assets from the FAFSA calculations are excluded.

This gives business owners and farmers have tremendous flexibility in the financial aid process. They have a ready-made accommodation available to them at any time. If families find that they have assets in excess of its asset-protection allowance, they can easily move assets from their personal accounts, their business and farm accounts. And when working with a good accountant, theStart a family business or farm can often taxable income, while ensuring necessary cash flow.