It’s all according to you……and your school

Presented by: April Gonzales-UTSA

What is Professional Judgment?What is Professional Judgment?

HEA Sec. 479A(a)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-by-case 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, Corrections, Updates, AdjustmentsAdjustments

There are situations where the original application information may need to be changed 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 PJVerification and PJAll 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 SituationsExamples of PJ SituationsThe following may merit a professional

judgment callLoss of IncomeAdditional ExpensesOne-time payoutsStudent’s Cost of Attendance Additional

ExpensesDependency Overrides

Can you determine which PJ is missing from this list?

What Data can be What Data can be AdjustedAdjusted by an by an FAA on the FAFSA?FAA on the FAFSA?

AGIWages EarnedTaxes PaidHHS# in CollegeAdditional Financial InformationUntaxed IncomeAsset information Dislocated Worker StatusDependency Status

But First and Foremost….. But First and Foremost….. DOCUMENTATION IS THE KEY!!!

Statement from student or parent outlining circumstance

Copies of TaxesW-2’s Last payment stubLetter from employer3rd party support documentsLegal documentsYour Institution’s Data system

Special CircumstancesSpecial CircumstancesWhat is a Loss of Income?

•Unemployment or Income Reduction

•Death of a parent/spouse

•Divorce

•Loss of child support

•Dislocated Worker

•Military combat pay

What is an Additional Expense?

•Extended family support

•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 OverridesDependency OverridesAny student who answers no to all the

dependency questions are dependent even if student is self-supporting

FAFSA 2011-2012 Questions 45-57Students who have extenuating circumstances

can file a Request for Independent Status

Denying a Dependency OverrideDenying a Dependency OverrideNone of the following examples merit a

dependency override:

1. Parents refuse to contribute to the student's education

2. Parents are unwilling to provide information on the FAFSA or for verification

3. Parents do not claim student as a dependent for income tax purposes

4. Student demonstrates total self-sufficiency

What’s Included in the Budget?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 & Board4.Transportation

5.Personal/Miscellaneous

FSA-Handbook Vol. 3 Ch.2 & NASFAA Fall 2010-11Training Handout Basic COA Components

Additional Cost of Attendance Additional Cost of Attendance Allowances Allowances

Dependent CareDisability-Related CostsEmployment Expenses for Cooperative

EducationStudy Abroad ExpensesFirst Professional Credential Educational Loan Fees

COA Restrictions/ExceptionsCOA Restrictions/ExceptionsLess than Half-Time StudentsCorrespondence Program StudentsIncarcerated Students

Examples of Budget AdjustmentsExamples of Budget Adjustments

Additional mortgage/rent chargesUnusual car repair or transportation costsDependent care costsComputer/Laptop expensesUnusual medical/dental expenses not covered

by insuranceUnusual DebtStafford loan fees (if applicable)Nursing Home Expenses not covered by

insuranceElementary/Secondary Private Tuition

Before taking in a Loss of Income Before taking in a Loss of Income or Additional Expenseor Additional ExpenseIs 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 Before Making an Adjustment to the COA…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 How does this information apply to Professional Judgment?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

Professional Judgment Exercise!

ResourcesDear Colleague Letters regarding Professional Judgment

GEN-11-04GEN-09-04GEN-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 An Institutional Approach to Developing and Revising Cost of

Attendance Components

Special Populations:NASFAA FAFSA Tips for Applicants in Unique Situations