1. PROFESSIONAL JUDGMENT Charting the course

2. Professional Judgment - Definition A Financial Aid Officers discretion to adjust a students reported information to account for special circumstances 2.

3. Where the Law Allows PJ: Dependant to Independent Student Status Calculation of EFC Calculation of Cost of Attendance Determination of Satisfactory Academic Progress Denial / Reduction of FFEL (Direct Loan) eligibility

4. Where the Law Does NOT Allow PJ: To directly adjust EFC To change the Federal Methodology To override independent to dependent status

5. Basic Rules of PJ Case by case basis only for special circumstances Valid only at school making decision Students approval not needed Must be documented Cannot be used to discriminate against protected class Submitted via paper or FAA Access or CPS Online 5.

6. Special Circumstances Special Condition: Use the current, not base year, income loss of employment / retirement / disability separation or divorce natural disaster death of a parent or spouse 6.

7. Is it Reasonable? Unreasonable Judgments…..based upon reoccurring costs. Vacation Expenses Tithing expenses Utilities Credit Cards Childrens allowances 7.

8. Is it already considered? Income Protection Allowance (IPA) 30% Food 22% Housing 9% Transportation 16% Clothing and personal care 11% Medical care 12% Consumer consumption

9. Dependency Overrides Changing a dependant student to independent status Can be used in abusive, or other extreme situations Cannot be used in cases of: Parents refuse to contribute to the students education; Parents are unwilling to provide information on the FAFSA or for verification; Parents do not claim the student as a dependent for income tax purposes; Student demonstrates total self-sufficiency. 9.

10. Parent Refuses To Fill Out FAFSA Student are not considered independent No need based aid allowed – unsub Stafford only Not a dependency override Documentation needed (social worker, etc..) Student still submits FAFSA, school must receive rejected form If school decides no unsub, FAFSA must be resubmitted with parent info 10.

11. 5 Step Process Get the facts Know your limitations Predict the possible outcomes Make a decision Documentation

12. PROFESSIONAL JUDGMENT Hypothetical