Federal Methodology: An Analysis of Farm Families and Asset Equity Removal

The purpose of this study was to evaluate specific changes made to the federal need analysis formula between aid years 1992-93 and 1993-94. The primary focus was the elimination of home and farm equity from the need analysis calculation. Changes in parental contributions and Pell Grant awards between aid years and formulae were examined. The results were compared and contrasted using paired t-tests for dependent sample means. The results suggest significant differences between need formulae and aid years. This study suggests an increasing trend toward higher unmet need and lower Pell Grant awards. It also implies that the most needy student may be losing gift assistance to more affluent applicants. As resources become scarce, these results may have implications for campus-based aid policy decisions and future adjustments to the need analysis construct