2. PJ is the discretion granted to financial aid administrators by law to override dependency status and make adjustments to need analysis, including data elements used to calculate the expected family contribution (EFC) and costs within the cost of attendance (COA) components

3. Section 479A of the Higher Education Act of 1965, as amended (HEA) establishes the authority for the financial aid administrator (FAA) to exercise discretion in a number of areas when an applicant has special or unusual circumstances

4. The U.S. Department of Education (ED) encourages the use of PJ for affected individuals under the Higher Education Relief Opportunities for Students (HEROES) Act of 2003

5. PJ is not regulated by ED The law does NOT Restrict your authority to exercise PJ Require you to exercise PJ when you encounter special circumstances

6. Use PJ to circumvent the law Use PJ to waive student eligibility requirements

7. Professional Judgment Need and action require adequate documentation Must be administered on a Case-by-Case basis Similar situations require individual documentation & review Across the board changes NOT permitted P&P should establish policy Should include policies that provide framework for triggering review Extends authority to request supplemental information FAA must make and document their own decision An institution may NOT automatically accept another’s adjustments May arrive at same conclusion, but must document

8. Focus on unique circumstance that impacts family’s ability to pay Review entire situation – are there items that offset the circumstance? Are there others on campus you might reach out to for more information about the student’s situation? Are you satisfied with the documentation you have received? Look at each request independently, but be consistent PJ should not be used as a rationing device for awarding limited funds.

9. What should you do if personal prejudices or assumptions get in the way of performing a PJ? How do different staff members handle certain situations? Are you requiring similar documentation from all students?

10. Discretionary vs. non-discretionary Necessity vs. lifestyle choices Can you make a logical argument for the PJ?

11. Professional Judgment Need Analysis Cost of Attendance Dependency Override Satisfactory Academic Progress Refusal or Adjustment of Loan Certification

12. Need Analysis May make changes to income, assets, exclusions, family size & number in college Income adjustment can be for any 12 month period that most accurately reflects situation May NOT Directly change formula May NOT directly adjust EFC

13. What constitutes unusual circumstances? Is the student and/or family actually experiencing unusual circumstances? Is special treatment warranted? What should the special treatment be? What documentation is needed?

14. Loss of income due to lay off? Loss of income due to retirement? Loss of income due to voluntary resignation?

15. Gambling winnings? Reduction in overtime pay? One-time bonus? Reducing student’s income if they help with household expenses?

16. On New Year’s eve, Gena decided she’d had enough and quit working as an exotic dancer at the truck stop at exit 186. Last year she made $47,000 during her part time work as she went to school. In March, she got a job at the Mule Trading Post and will make $8.95 per hour, 20 hours per week as she finishes her degree. Would you make an adjustment? What information would you collect?

17. Kristen is a Senior at 4-year private school. She has always received the Pell Grant on her award letter, except for this year. She hit a progressive slots jackpot in Booneville and brought home $25,000 in winnings, which is 4 times what she makes in a normal year. She used the money on medical bills, taxes, and a two week adventure in Colorado that she doesn’t remember, but now gets lots of coupons from Taco Bell. What would you do?

18. Drew, a dependent student, realizes that he did not get as much financial aid this year as he did in the previous year. His mom submits a special circumstance form claiming a forced reduction in hours for all employees. She includes a copy of a company wide letter as well as paystubs of before and after that verify the reduction. She also asks that you exclude the $14,000 withdrawal from her retirement account as her income has not been enough to sustain her living expenses. She explained that this is primarily due to high medical bills. You look at the previous year and note that you did a PJ to exclude a similar “one-time” withdrawal last year. Last year you also had a Schedule A that showed about $9,000 in medical expenses. This year, medical expenses were not high enough to qualify for a deduction. Would you exercise a PJ? If so, for what? Would you ask for any additional documentation?

19. Cost of Attendance Must be made within categories defined in HEA Section 472 Cannot create a new cost category

20. Josh is a graduate student who moved from Southern California to Northern Minnesota. He is asking for an increase in COA to take into consideration U-haul rental, gas for U-haul, change of climate clothing allowance, as well as the deposit he had to pay for an apartment. He feels these cost fall under educational expenses. Would you exercise PJ to allow for any or all of these expenses?

21. Dependency Override Allowed FAA may accept D/O from another institution if it is for the same academic year Nature of relationship with parents make it unsafe, unreasonable, or inappropriate to require parental information and/or support Not Allowed Parent’s refusal to contribute or provide information, parent not claiming student as dependent, student demonstrates self-sufficiency May NOT change from Independent to Dependent

22. Documented physical or sexual abuse at home Documented emotional or verbal abuse at home Cultural differences related to higher education Disowned due to sexual orientation Disowned due to student’s lifestyle choices

23. Justin is 22, lives on his own and pays $750 per month in rent, pays for his own cell phone, utilities and is considered by his peers to be self-sufficient. His parents do not claim him on their tax return and have said they are unwilling to provide income information, thus refusing to fill out the FAFSA. Would you grant an override?

24. Matthew is 22 and has lived with his grandparents since his mother died 2 years ago. His mother had a one night stand, he has never met his father and he has no idea where he is at. Last year Matthew included his grandparents information on the FAFSA and it wasn’t caught. What would you do?

25. Crystal transfers to your fine institution from Avila University, where last award year she was granted a dependency override. She comes into your office, starts throwing things and says she is independent. What should you do? Crystal doesn’t get a D/O at your school and decides to go back to Avila, because they “care about students.” Now applies and is admitted to your institution for the spring semester. What happens?

26. Dependent student was living in a shelter for 6 months and now lives in an apartment with her boyfriend. She was in the shelter at the time she applied for financial aid and provided you with documentation from the shelter. Parent student lived with is incarcerated. Student has recently reconnected with dad and step-mom who are willing to help, but only have the means to offer the student a cot in a room in the basement that is primarily used for storage. As such, student’s permanent address is her campus address. On breaks, she either stays on campus or goes home with a friend.

27. Several years ago Mike’s family fell on hard times. Dad was injured and could no longer work. Mom left and they have no idea where she is. With no income, Mike and his dad became homeless. Fortunately, families from their church have taken them in for periods of time over the past 2 years, although there have been occasions when Mike has lived with a family while his dad lived in his car or with another family. You have a letter from their pastor verifying their situation. When Mike, now 18, submitted his FAFSA he answered YES to the question, “On or after July 1, 2014 were you homeless or were you self-supporting and at risk of being homeless? Mike did not have a homeless determination so answered NO to the 3 subsequent questions. Based on this information, would you approve the homeless status or would you require Mike to add his father’s information to his FAFSA?

28. Refusal or Adjustment of Loan Certification May not discriminate based on borrower’s race, national origin, religion, sex, marital status, age, disability status, or income Reason for determination & actions taken must be documented in student’s file and provided to borrower in writing Possible reasons: High debt burden, Unwillingness to repay loan

29. CortneyJo is a graduate student at your institution and has accumulated $250,000 in debt. She is also a full time employee at your institution and receives a 75% tuition reduction. She has applied for a Graduate PLUS loan maximum of $32,332 this year. What would you do?

30. Does the situation warrant special consideration? Would you ask other questions about the family situation? If so, what would you ask? What documentation would you request? What adjustments would you make?

31. Lily is a 18-year-old student who lives with her parents. Her parents do not trust the Federal government and vehemently object to them requiring people to pay tax on their income. As such, have not filed a tax return since Lily was a child. Unlike her parents, Lily has filed a tax return since she started working as a waitress at the age of 16. Although they approve of her going to college, Lily’s parents refuse to fill out any federal forms, including the FAFSA. What would you do?

32. Satisfactory Academic Progress May exercise PJ to waive SAP standards due to undue hardships Personal illness or injury Other special circumstance Death of relative

33. If student is selected for verification, school must complete verification before exercising PJ Regardless of whether or not student was selected for verification, ALL PJ adjustments must be reprocessed by CPS