Professional Judgment (PJ) 101 MASFAA Conference, Charleston WV October 18, 2005 Michele & Jerry Wade

Starting Points… There is no right or wrong action… within reason Inconvenience…hardship Document…document…document Define issue Collect information/Verification Resolution Action

Who determines use of PJ? Federal Regs Provide authorization under Higher Education Act DOE No regulatory responsibility May monitor for auditing purposes FAA Is there a unique circumstance? Does it warrant special consideration? What should treatment be? What supporting documentation is required?

What are examples of PJ? Loss of employment Medical/dental expenses not covered by insurance Elementary/Secondary school tuition Dependent care costs Loss of child support or Social Security benefits Divorce of parent or independent student Death of parent or independent spouse Dependency Override

Why is PJ Important? Provides flexibility in dealing with unique circumstances of individual case Allows for intervention of FAA in a subjective manner Enables response to issues not anticipated in legislation or regulation

When should PJ be used? Adjust COA for unusual expenses during enrollment period Change FM data elements to allow for special circumstance Override dependency status Allow for leniency in monitoring SAP Deny or limit access to Title IV loan program Others?

When does PJ not apply? Four conditions that do not merit a dependency override: Refusal to contribute Unwillingness to provide FAFSA data Not claiming student as deduction on 1040 Demonstration of total self-sufficiency

When does PJ not apply? Across-the-board changes Change FM formula Adjust bottom-line EFC Change status from independent to dependent Make an otherwise ineligible student eligible Include post-enrollment expenses Circumvent intent of law or regulation

How do I implement PJ? Dependency override Standards of Progress Loss of income Medical/dental costs Elementary/secondary school tuition Divorce/death of parent or independent student

Income Protection Allowance 30% for food 22% for housing 9% for transportation 16% for clothing & personal care 11% for medical care 12% for other family consumption

Do… Think outside the FA box Verify accuracy of original data provided on FAFSA Gather and retain supporting documentation Document decision, date of action and staff responsible for decision Process changes through CPS if Federal Pell Grant is effected Document…document….document!

Don’t… Accept PJ made at another institution Hesitate to collect third-party documentation or other supporting materials Allow inappropriate influence to enter into decision Be intimidated by the process

Contact information Michele Wade Jerry Wade