Professional Judgment

Professional Judgment Jennifer Gates Senior Financial Aid Advisor SUNY Potsdam Fall School Counselor Workshop October 24, 2013

Professional Judgment Financial Aid Advisors May: • Address special circumstances for an individual student. • Distinguish between changes in a family’s circumstance that are choice versus necessity. • Assess the family’s circumstance objectively without prejudging or making assumptions.

Dependency Override: An independent student is defined in section 480(d) of the Higher Education Act

Dependency Override: • If student can answer “Yes” to one of eight criteria asked on the FAFSA, they are automatically deemed independent. • May have to provide documentation to school

Independence Questions: • DOB (Born before Jan. 1, 1991)? • Married? • Graduate student? • Active Duty Status? • Veteran Status?

Independence Questions: • Children who receive more than 50% of their support from the student? • Dependents who reside with student and receive more than 50% of support from the student?

Independence Questions: • Status as an Orphan/Ward of the court or in danger of being homeless.

If All Answers are “No”: Then, Student considered independent only if an advisor documents unusual circumstances and uses ‘professional judgment’ to deem them as such.

Unusual Circumstances Include: • Abusive home environment that threatened student’s safety and/or health. • Parent incarceration, disability, or mental or physical illness.

Unusual Circumstances do NOT Include: • Parents refuse to contribute. • Parents are unwilling to provide information. • Parents do not claim student on tax return. • Student demonstrates total self-sufficiency.

Documentation is Required: Financial Aid Advisors must document the reason for the determination and obtain third party documentation to support the decision.

Documentation Might Include: • Counselors • Clergy • Community groups • Courts • Medical Personnel • Government Agencies, etc. • (Sometimes from a relative if no other documentation is available).

Cost of Attendance: The Cost of Attendance for a student is an estimate of that student’s educational expenses for the period of enrollment.

Costs May Include: • Tuition & Fees • Room & Board • Books & Supplies • Personal • Transportation

Costs Vary Some students have costs that are higher than the estimate used by the school’s Financial Aid Office to determine aid eligibility.

Costs May be Adjusted Financial Aid Advisors may increase the student’s cost of attendance, which may create more aid eligibility.

Examples of Cost Adjustments • Housing expenses • Computer • Extraordinary travel expenses • Course fees (i.e—Music fees or art fees, etc.) • Child Care

Examples of Cost Adjustments • Study Abroad • Loan Fees • Cooperative Education Expenses • First Professional License • Enrollment in an additional term (Summer/Winterim)

Cost Adjustments AreNot Always Beneficial! If the student has already received the maximum federal Pell grant and/or loan funding, adjusting the cost of attendance will not result in an increase in aid eligibility.

Expected Family Contribution Financial Aid Advisors may adjust the values of the data items on the FAFSA used to calculate aid eligibility.

Financial Aid Advisors May: • Exclude extraordinary expenses OR • Adjust reported financial information

Expenses that May Be Excluded: • Elementary or secondary school tuition expenses. • Medical, dental, or nursing home expenses not covered by insurance. • Child or dependent care costs.

Before Adjusting Financial Information, Aid Advisors: • Must resolve conflicting information on the application first. • FAFSA corrections often result in an increase in aid eligibility.

Before Adjusting Financial Information, Aid Advisors: • Review whether the changes will benefit the student. (It may not make sense to proceed with request & obtain documentation if it doesn’t). • Obtain sufficient documentation in relation to the request.

Examples of Financial Adjustments: • Recent unemployment of family member or independent student • Family member or student is a dislocated worker • Parents enrolled in college

Examples of Financial Adjustments: • Change in housing status resulting in homelessness • Other changes in family’s income, family’s assets, or student’s status

Use of Professional Judgment is: • Not limited to these circumstances • Not required in these circumstances • Examples are just that: • Ideas about the types of conditions that an aid officer might consider

Examples of Unreasonable Financial Adjustments: • Vacation expenses • Tithing expenses • Expenses such as utilities, cable bills, credit card payments, children’s allowances • Standard maintenance items such as lawn care and home repair

Adjustment Must Be To: • Data element in the needs analysis formula, such as: • AGI • Taxes Paid • Wages

Adjustment Must Not: • Change the formula itself or the tables used in the formula. • Make a direct adjustment to the EFC.

Documentation Might Include: • Medical bills not reimbursed by insurance • Elementary/Secondary school tuition bills

Documentation Might Include: • Child care or dependent care bills • Pay stubs • Documentation of unemployment • Tax returns

Unsubsidized Loan Funding Only: Available for students with parents unwilling to provide their information on the FAFSA.

Unsubsidized Loan Funding Only Offered If: • The parents have ended financial support of the student, and • The parents refuse to file the FAFSA, and • No other type of federal can be offered

Student Eligible For: • Freshman: $5,500 • Sophomore: $6,500 • Junior/Senior: $7,500 Financial Aid Advisormust collect & maintain documentation

Must Obtain Statement from Parents That Indicates: • They have stopped providing financial support and date that support ceased, and • They will not provide financial support in the future, and • That they refuse to provide parental information required on the FAFSA

Questions?

Professional Judgment