Professional judgment 2018 new aid officers workshop Professional judgment Kimberly Schwaeble Assistant Director Rice University ks56@rice.edu

What you will learn Definition of Professional Judgment Types of PJs What is allowed What is NOT allowed

What is Professional Judgment? Section 479A in the HEA authorizes us to use PJ

Examples of PJ situations Adjusting Cost of Attendance components Adjusting data elements used to calculate EFC Direct changes to EFC is not permitted Performing a Dependency Override Establishing eligibility for a dependent student to receive Federal Direct Unsubsidized loans if parent refuses to complete FAFSA and support student

Elements that can be adjusted AGI Wages Earned Taxes Paid Number in Household Number in College Additional Financial Information Untaxed Income Asset information Dislocated Worker Status Federal Benefit Programs (i.e.- SNAP, WIC, TANF, etc.) Dependency Status Only for dependent to independent

First rule of pj is… DOCUMENT! Keep in mind that all special circumstances must be verified first to ensure you start with accurate data Federal verification must be complete for selected students before PJ can be conducted! MAY opt to verify students not selected who appeal as well Types of documents you may wish to collect Tax returns W2s Last pay stubs 3rd party documents Legal documents Letter from employers

Loss of income or additional expenses

Types of income loss/additional expenses Unemployment or income reduction Death of parent/spouse Divorce of parent/student Loss of child support One-time lump sum payment GEN-09-04 Additional Expenses Extended family support (i.e. nursing home expenses) Unusual medical/dental that exceed 11% of IPA Unusual non-discretionary debt exceeding 12% of IPA Private school costs for elementary/high school

Medical expenses example Let’s say you have a dependent student whose parents experienced an annual medical expense totaling $5,000. The student has 4 in the household and 1 in college. How would you calculate how much of the $5,000 exceeds the 11% of the IPA?

Dependency Overrides & Unsubsidized Stafford Eligibility Authority given for dependency overrides HEA Section 480(d)

Dependency overrides Any student who answers “No” to all the dependency questions is dependent even if student is self-supporting Students who have extenuating circumstances can request an FAA to consider a dependency override Requires documentation to the validity of the extenuating circumstances Personal statement Letters from professionals Remember: DOCUMENT, DOCUMENT, DOCUMENT! Per CCRAA, Schools have the authority to accept the dependency override that was performed and approved by another school without additional documentation.

Dependency overrides cont’d Factors to consider Abandonment by parents Unable to locate a parent after reasonable attempts Situations of abuse

Dependency overrides cont’d None of the following examples merit a dependency override: 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

You be the judge… Laura is a first-time freshman living with her grandparents. She is not under legal guardianship, but she has been living with her grandparents since she was 5 when her father left the country. Her mother died when she was 2. She has had no contact with her father since she was 5 and neither has her grandparents, although he sent a check out of the blue when she turned 18 for $5,000. Would you consider Laura independent? Why or why not?

You be the judge… Karen’s father works in real-estate, and his commissions in 2016 were exceptionally high. He did not perform as well in 2017, but is unsure where he will land for 2018 at this time. He is requesting that his 2017 income be taken into consideration rather than his 2016 income since his commissions were lower. Would you approve this appeal for taking the lower income amount into consideration? Why or why not?

Thank you! Contact Information Kimberly Schwaeble Assistant Director Rice University ks56@rice.edu