Professional Judgment: Should ya, Could ya, Would ya

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Professional Judgment Should ya, Could ya,
Would ya?

• 2008 SASFAA CONFERENCE
• FEBRUARY 17-20, 2008
• CRYSTAL CITY, VIRGINIA

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Objectives

• A brief summary of Professional Judgment
• Identify the importance of PJ and the balance
  between PJ and federal regulations
• PJ not for the faint-hearted, hard-hearted,
  soft-hearted or uninformed FAA!
• Recognize importance of PJ PPs
• PJ and consumer info how to avoid frivolous
  appeals
• Review of actual cases

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Summary of Professional Judgment

• PJ is authority provided under the HEA for FAAs
  to exercise discretion in specific areas
• PJ is not regulated by ED
• HEA Section 479A Authorizes case by case
  adjustments to
• COA increase OR decrease
• Values of FM data items
• Authority to deny or reduce loan certification
• Other statutory provisions allow for PJ
  regarding
• Dependency status
• Satisfactory academic progress (SAP)

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The importance of regulatory compliance and
exercising PJ

• Use PJ when a round peg doesnt fit into a square
  hole gives you flexibility
• FAAs can personally intervene in cases that need
  individual attention
• Ability to respond to individual circumstances
  not anticipated in legislation or regulation

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PJ not for the faint-hearted, hard-hearted,
soft-hearted or uninformed!

• FAAs hesitate to exercise PJ because of
• Inexperience
• Lack of confidence
• Time and staffing constraints
• Fear of audits and program reviews

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No PJ allowed!

• PJ may not be used to
• Change independent student to dependent
• Create a new category of costs
• Adjust bottom-line EFC
• Change EFC formula
• Make across-the-board changes
• Make an otherwise ineligible student eligible
• Circumvent intent of law or regulations
• Include post-enrollment expenses
• Circumvent FSEOG selection criteria

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No PJ allowed! (continued)

• Conditions that do NOT merit dependency override
• Parents refusal to pay for education
• Parents unwilling to provide FAFSA information
• Parents not claiming student for income tax
  purposes
• Student demonstrating total self-sufficiency

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PJ Policies and Procedures

• The need for policies and procedures is crucial
• Staff must be trained to evaluate PJ appeals
  consistently and fairly
• Staff must know verification regulations and FM
• Documentation, documentation, documentation!
• Documentation of special circumstance
• Documentation of schools decision, how it was
  reached, and action taken

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PJ and consumer information managing the number
of appeals submitted to your office

• Need for PJ consumer info on your web site
• Loss of income does it exceed a pre-determined
  percentage?
• Verification of current income prior to
  processing PJ appeal
• SAP appeal policy
• Dependency override policy
• Increases to COA limits for computer purchase,
  day care, travel, etc.

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Discussion of actual cases

• COA Adjustment
• EFC Adjustment
• Deny or reduce loan certification
• Dependency override
• Satisfactory Academic Progress

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COA

• COA Student will begin student teaching and
  requests increase in COA for
• Professional wardrobe 5 pairs of slacks, 8 dress
  shirts, shoes, socks, 2 sport coats, belt
• Travel to school site
• Cell phone to check on school delays,
  cancellations
• School supplies for students
• Luncheon expenses while at school site
• Laptop for processing course plans

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NASFAA Monograph

• Professional Judgment in Eligibility
  Determination and Need Analysis
• October 2007, Number 21

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COA Increase

• Student requests COA increase for child care.
  Care provider charges 12/ hour for toddler and
  15/hour for infant. Student is enrolled FT and
  calculates she will need child care 40 hours/week
  (1080 per week) (15 week semester 16,200).

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EFC Adjustment

• Student divorced in 1/08 and filed joint return
  for 2007. Student continues to live with
  ex-spouse who fully supports student and their
  children. Total family income is 83,000, of
  which 3,900 is students earnings. Student
  requests PJ for divorce, 3 in family, and reduced
  income.

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EFC Adjustment

• I am a parent and I want to tell you about a 1
  year blip in my AGI because I sold a vacant piece
  of property and had 90,000 in capital gains..
  a. what would you do...(reduce AGI?) and would
  you do anything differently if the additional
  income was used to ....pay off massive medical
  bills because of chemotherapy or ...pay off
  credit card debt

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EFC Adjustment

• We allow folks to project a 2008 income after
  5/1/08 and use that instead of 2007 AGI. So
  let's say someone did that in 5/1/2007 (last
  year)....and we gave them more money last year.
  Now it's 2008 and they say they want to project
  again because this year isn't going to look like
  last year AND when we see what their actual 2007
  income was versus what they projected they REALLY
  low balled it....so would you
• a. go ahead and let them project again
• b. make them wait until 12/08 to project 2008
• c. deny the special circumstance straight up
• d. something else???

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Deny or reduce loan certification

• Co-worker/student tells another FAO staff member
  that she will borrow up to the max, but no way
  will she ever repay her student loans. Would you
  refuse to certify additional loans?

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Deny or reduce loan certification

• Student has a history of withdrawing from school
  as soon as she receives her loan refund. She is
  currently on financial aid suspension. She has
  submitted an appeal to be removed from suspension
  and the appeal has been approved.
  Would/should/could you refuse to include federal
  loans in her award package?

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Deny of reduce loan certification

• Student has appealed probation and suspension
  status during undergrad and grad programs
  numerous times based on disabilities. Numerous
  appeals have been approved. Student is working on
  2nd Masters degree, is placed on financial aid
  suspension due to time frame and credits.
• A. would you continue to approve SAP appeals?
• B. refuse to certify any additional loans?

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Dependency Override

• Students father refuses to complete FAFSA
  because he wants student to attend a madras in
  Saudi Arabia and become a fundamentalist follower
  of Islam. Student is requesting a dependency
  override because he doesnt want to go to Saudi
  Arabia.

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Dependency override

• Student files as ward of the court because she
  was living in a group home, but no longer does
  so.
• If the student has no parental contact, would you
  make her independent?
• If the student now has complete parental contact,
  would you make her independent?

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Dependency override

• Student has been convicted of DWI 3 times.
  Parents refuse to complete FAFSA because they
  wont continue to contribute to his lifestyle.
  Student appeals to be independent and provides
  letter from parent documenting their position and
  requesting student be considered independent.

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Satisfactory Academic Progress

• Student was accused of rape and failed to
  maintain SAP because of resulting stress, legal
  problems, etc. Student appealed financial aid
  suspension and provided documentation of
  dismissal of charge because of false accusation.
• A. Would you approve his appeal?
• B. Would you place him back on financial aid
  probationary status?

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Satisfactory Academic Progress

• Student appeals financial aid suspension because
  she was arrested for DWI and was unable to attend
  classes for two weeks.

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Packaging after PJ

• IF you accept a special circumstance do you then
  run the student back through regular packaging
  philosophy and let them be eligible for any and
  all kinds of money (as if the special
  circumstance EFC was the first one so to
  speak)....

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Contact Information

• Diane Lambart Fleming
• Associate Director-Client Services
• Office of Scholarships and Financial Aid
• Central Michigan University
• Student Service Court
• Mt. Pleasant, MI 48859
• Phone [phone]
• Fax [phone]
• Email flemi1dl_at_cmich.edu