The Lumiere Group - Professional Judgment Financial Aid

1. Professional Judgment in
Financial Aid
The Lumiere Group

2. PJ Definition
from Department of Education
• Higher Education Act provides authority for financial aid
administrator to exercise discretion in a number of areas.
• Allows the financial aid administrator to treat a student
individually when the student has special circumstances that are
not sufficiently addressed by the standard approach.
• Special circumstances are conditions that differentiate an
individual student from a class of students rather than conditions
that exist across a class of students.
• Often used in cases of either dependency overrides or
income/data element adjustments.

3. PJ Principles
N e e d a n d a c t io n
r e q u ir e
a d e q u a t e
d o c u m e n t a t io n
S im ila r p r o b le m s
& r e s o lu t io n s
s t ill r e q u ir e c a s e -
b y - c a s e r e v ie w
M u s t b e
a d m in is t e r e d
o n a c a s e - b y -
c a s e b a s is
A c r o s s t h e
b o a r d c h a n g e s
N O T
p e r m it t e d
P & P p r o v id e
f r a m e w o r k -
m u s t m a in t a in
in d iv id u a l r e v ie w
I n s t it u t io n m a y
e s t a b lis h
P & P t o
t r ig g e r r e v ie w
E x t e n d s a u t h o r it y
t o r e q u e s t
s u p p le m e n t a l
in f o r m a t io n
M a y a r r iv e a t
s a m e c o n c lu s io n
- m u s t d o c u m e n t
o w n d e c is io n
O n e in s t it u t io n
m a y n o t a c c e p t
a n o t h e r 's
a d j u s t m e n t s
F A A d m in is t r a t o r
m u s t m a k e
o w n d e c is io n
o n a d j u s t m e n t s
P r o f e s s io n a l J u d g e m e n t

4. Areas to Perform PJ
Adjustments
• Need analysis
• Cost of attendance
– Dependent care
– Computer purchase
• Satisfactory
Academic Progress
• Refusal or
adjustment of loan
certification

5. Areas Where PJ Does NOT
Apply
Currently, FAA may not:
• Change a student’s
status from independent
to dependent
• Create a new cost
category
• Adjust EFC directly
• Change the formula
itself

6. CIRCUMSTANCE DATA
VERIFICATION
POSSIBLE
ADJUSTMENTS
Unusual medical and
dental expenses
Federal income tax
sched. A – itemized
deductions, and/or
receipts
Reduce AGI by
expenses exceeding
certain % of
income.
Income reduction
or non-recurring
income (divorce,
death, loss of
employment)
Signed statements
documenting
estimated earnings,
divorce agreements,
disability/SS
benefits
Use projected year
income for income
reduction. For non-
recurring income,
reduce AGI by that
amount.
Unusual debts
(mortgages, credit
card to cover
unemployment)
Contract, mortgage,
lien, billing payment
summary
Reduce AGI by
annual installment,
or adjust assets
Elementary/seconda
ry school costs;
dependent care
Receipts for
payment, signed
statements
Reduce AGI by
expense amount,
increase COA

7. Dependency Override
“In unusual circumstances,
a student who does not
meet any of the
dependency criteria
may still be considered
to be independent on
the basis of the financial
aid administrator’s
professional judgment.”
SOURCE: SFA Handbook

8. Independent Criteria
• 24 years old by 12/31 of the award year,
• Veteran of the U.S. Armed Forces,
• Graduate or professional student,
• Married,
• Orphan or ward of the court,
• Has legal dependents other than a spouse.

9. The Lumiere Group
• If you have any questions or would like
to hire The Lumiere Group to consult
with your Financial Aid Department
please send us an email at
info@thelumieregroup.org or visit us at
www.lumiereEd.org

10. Thank You
We Can Work With You Today
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