Transcript Professional Judgment

It’s all according to you…
…and your school
Presented by: April Gonzales-UTSA
What is Professional Judgment?
HEA Sec. 479A(a)
 IN GENERAL—Nothing in this part shall be
interpreted as limiting the authority of the financial
aid administrator, on the basis of adequate
documentation, to make adjustments on a case-bycase basis to the cost of attendance or the values of the
data items required to calculate the expected student
or parent contribution (or both) to allow for treatment
of an individual eligible applicant with special
circumstances
AVG 2011-2012 Ch. 5 p.104
Corrections, Updates,
Adjustments
 There are situations where the original application
information may need to be changed
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Errors need to be corrected
Dependency status, HHS, or # in College must be
updated
An aid administrator has the discretion to use
professional judgment to account for special
circumstances and adjust data
AVG 2011-2012 Ch. 5 p.99
Verification and PJ
 All special circumstances must be verified first
 You must resolve any inconsistent or conflicting
information shown on the output document before
making any adjustments.
AVG 2011-2012 Ch. 5
Examples of PJ Situations
 The following may merit a professional judgment call
 Loss of Income
 Additional Expenses
 One-time payouts
 Student’s Cost of Attendance Additional Expenses
 Dependency Overrides
Can you determine which PJ is missing from this list?
What Data can be Adjusted by an
FAA on the FAFSA?
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AGI
Wages Earned
Taxes Paid
HHS
# in College
Additional Financial Information
Untaxed Income
Asset information
Dislocated Worker Status
Dependency Status
But First and Foremost…..
 DOCUMENTATION IS THE KEY!!!
 Statement from student or parent outlining
circumstance
 Copies of Taxes
 W-2’s
 Last payment stub
 Letter from employer
 3rd party support documents
 Legal documents
 Your Institution’s Data system
Special Circumstances
What is a Loss of Income?
What is an Additional Expense?
•Unemployment or Income
Reduction
•Extended family support
•Death of a parent/spouse
•Divorce
•Loss of child support
•Dislocated Worker
•Military combat pay
•Private school costs for children in
elementary or high school
•Unusual medical/dental expenses
not covered by insurance (must
exceed 11% of IPA)
•Unusual debt (must exceed 12%
of IPA)
Each of these scenarios could impact the EFC
Dependency Overrides
 Any student who answers no to all the dependency
questions are dependent even if student is selfsupporting
 FAFSA 2011-2012 Questions 45-57
 Students who have extenuating circumstances can file a
Request for Independent Status
Denying a Dependency Override
 None of the following examples merit a dependency
override:
1.
2.
3.
4.
Parents refuse to contribute to the student's
education
Parents are unwilling to provide information on the
FAFSA or for verification
Parents do not claim student as a dependent for
income tax purposes
Student demonstrates total self-sufficiency
What’s Included in the Budget?
Standard Components that make up a student’s
Cost of Attendance
1. Tuition & Fees
2. Books & Supplies
3. Room & Board
4. Transportation
5. Personal/Miscellaneous
FSA-Handbook Vol. 3 Ch.2 & NASFAA Fall 2010-11Training Handout Basic COA Components
Additional Cost of Attendance
Allowances
 Dependent Care
 Disability-Related Costs
 Employment Expenses for Cooperative Education
 Study Abroad Expenses
 First Professional Credential
 Educational Loan Fees
COA Restrictions/Exceptions
 Less than Half-Time Students
 Correspondence Program Students
 Incarcerated Students
Examples of Budget Adjustments
 Additional mortgage/rent charges
 Unusual car repair or transportation costs
 Dependent care costs
 Computer/Laptop expenses
 Unusual medical/dental expenses not covered by
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insurance
Unusual Debt
Stafford loan fees (if applicable)
Nursing Home Expenses not covered by insurance
Elementary/Secondary Private Tuition
Before taking in a Loss of Income
or Additional Expense
 Is the EFC already Zero?
 Who is the change coming from Student/Spouse, or
Student/Parent?
 Does the EFC come mainly from Parent’s Income or
Assets?
 Does the EFC come mainly from Student’s Income or
Assets?
 Will the change make a difference to the award? (Sub
Max, Pell Grant Eligibility if EFC change)
Before Making an Adjustment to
the COA…
 Has the student’s COA been met?
 Does the student currently reflect need?
 Does the student have the Max Subsidized Stafford
Loan?
 Does the student have their Max Stafford Loans
awarded?
 What is the students current enrollment?
How does this information apply to
Professional Judgment?
 Know when to suggest a PLOI/SLOI, One-Time Lump
Sum, an Additional Expense, or a Student COA
adjustment
 Keep from processing unnecessary paperwork
Apply what you’ve learned
Professional Judgment Exercise!
Resources
 Dear Colleague Letters regarding Professional Judgment
 GEN-11-04
 GEN-09-04
 GEN-09-05
 IFAP 2011-12 Application Verification Guide (AVG)
 EFC Chapter 3, PJ Chapter 5,
 IFAP: Student Aid Handbook:
 Volume 3 Chapter 2 COA/Budget
 2010 NASFAA Fall Training
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An Institutional Approach to Developing and Revising Cost of Attendance
Components
 Special Populations:
 NASFAA FAFSA Tips for Applicants in Unique Situations