1. Professional judgment
2018 new aid officers workshop
Professional judgment
Kimberly Schwaeble
Assistant Director
Rice University

2. What you will learn Definition of Professional Judgment Types of PJs
What is allowed
What is NOT allowed

3. What is Professional Judgment?
Section 479A in the HEA authorizes us to use PJ

4. Examples of PJ situations
Adjusting Cost of Attendance components
Adjusting data elements used to calculate EFC
Direct changes to EFC is not permitted
Performing a Dependency Override
Establishing eligibility for a dependent student to receive Federal Direct Unsubsidized loans if parent refuses to complete FAFSA and support student

5. Elements that can be adjusted
AGI
Wages Earned
Taxes Paid
Number in Household
Number in College
Additional Financial Information
Untaxed Income
Asset information
Dislocated Worker Status
Federal Benefit Programs (i.e.- SNAP, WIC, TANF, etc.)
Dependency Status
Only for dependent to independent

6. First rule of pj is… DOCUMENT!
Keep in mind that all special circumstances must be verified first to ensure you start with accurate data
Federal verification must be complete for selected students before PJ can be conducted! MAY opt to verify students not selected who appeal as well
Types of documents you may wish to collect
Tax returns
W2s
Last pay stubs
3rd party documents
Legal documents
Letter from employers

7. Loss of income or additional expenses

8. Types of income loss/additional expenses
Unemployment or income reduction
Death of parent/spouse
Divorce of parent/student
Loss of child support
One-time lump sum payment
GEN-09-04
Additional Expenses
Extended family support (i.e. nursing home expenses)
Unusual medical/dental that exceed 11% of IPA
Unusual non-discretionary debt exceeding 12% of IPA
Private school costs for elementary/high school

9. Medical expenses example
Let’s say you have a dependent student whose parents experienced an annual medical expense totaling $5,000. The student has 4 in the household and 1 in college. How would you calculate how much of the $5,000 exceeds the 11% of the IPA?

10. Dependency Overrides & Unsubsidized Stafford Eligibility
Authority given for dependency overrides HEA Section 480(d)

11. Dependency overrides
Any student who answers “No” to all the dependency questions is dependent even if student is self-supporting
Students who have extenuating circumstances can request an FAA to consider a dependency override
Requires documentation to the validity of the extenuating circumstances
Personal statement
Letters from professionals
Remember: DOCUMENT, DOCUMENT, DOCUMENT!
Per CCRAA, Schools have the authority to accept the dependency override that was performed and approved by another school without additional documentation.

12. Dependency overrides cont’d
Factors to consider
Abandonment by parents
Unable to locate a parent after reasonable attempts
Situations of abuse

13. Dependency overrides cont’d
None of the following examples merit a dependency override:
Parents refuse to contribute to the student's education
Parents are unwilling to provide information on the FAFSA or for verification
Parents do not claim student as a dependent for income tax purposes
Student demonstrates total self-sufficiency

14. You be the judge…
Laura is a first-time freshman living with her grandparents. She is not under legal guardianship, but she has been living with her grandparents since she was 5 when her father left the country. Her mother died when she was 2. She has had no contact with her father since she was 5 and neither has her grandparents, although he sent a check out of the blue when she turned 18 for $5,000.
Would you consider Laura independent?
Why or why not?

15. You be the judge…
Karen’s father works in real-estate, and his commissions in 2016 were exceptionally high. He did not perform as well in 2017, but is unsure where he will land for 2018 at this time. He is requesting that his 2017 income be taken into consideration rather than his 2016 income since his commissions were lower.
Would you approve this appeal for taking the lower income amount into consideration?
Why or why not?

16. Thank you!
Contact Information
Kimberly Schwaeble
Assistant Director
Rice University