To amend the Higher Education Act of 1965 to preclude the consideration of nonliquid assets in the determination of Federal student financial assistance.

Amends the Higher Education Act of 1965 to exclude from the calculation of expected family contribution in the determination of need for assistance under the Pell Grant program and other student assistance programs the following assets: (1) the family's principal place of residence; (2) a family farm on which the family resides; and (3) a small business substantially owned and managed by a member or members of the family.