Three Areas of PJs Professional Judgment & the Financial Aid Office - PowerPoint Presentation

Three Areas of PJs Professional Judgment & the Financial Aid Office

Basic PJ Principles The responsibility for educating students rest with their families. Neither the student nor the family can absolve the other from that responsibilityThe need analysis formula is not a cash-flow analysis, but an attempt to measure the relative financial strength of families to meet education expenses over time. Use PJ to Adjust:COA budgetEFC – including but not limited to changes in income, parent marital status, medical expenses, private school tuition (expenses once allowed within FM)Dependency statusSAP Issues FINANCIAL AID OFFICES MAY ADJUST DATA ELEMENTS THAT IMPACT EFC BUT NOT THE EFC ITSELF

Professional Judgment You have already completed your FAFSA. The final financial aid determination has been made. Thereafter, there has been a change of family circumstances that affects your ability to attend or not attend college at all. Perhaps there are other circumstances best known to you that may inhibit your attending college. Contact the Financial Aid Office of the school that you plan to attend, in order to discuss your unique circumstances.

Professional Judgment and the EFC Principles of Need Analysis: Family is responsible for college cost Aid based on relative ability to pay (not willingness ) Formula establishes relative economic strength to meet costs over time Analysis is not a cash flow analysis Ability to pay is independent of cost and independent of family lifestyle Snapshot of general financial situation at point of application.

The Pajama Game The determination must be made on a case-by-case basis The reason for the action must be documented and provided in written form to the student The school must not discriminate on the basis of race, national origin, religion, sex, marital status, age or disability status

So what does not constitute a PJ? Student has been supporting him/herself for past two years, claiming themselves on their federal tax returns Students whose parents reside out of the United States Students whose parents are undocumentedParents refuse to provide income information for FAFSA completionStudent is 19 years of age, lives on his/her own and was Ward of the State at age 13One parent is deceasedOne parent is incarceratedMaking an independent student dependent

2 Types of Documentation A written request from the student and Letters of Termination Benefits received Receipts Pay stubs Other third party documentation A clear record of : Decision made and how it was reached Decision date Description and date of actions taken School policy and procedure citation Name and title of decision maker

Cost of Attendance - Budget Documentation Documentation

Dependent Care Allowance Adding your school’s standard dependent care allowance to the budgets of qualifying students is not professional judgment Adjusting the standard dependent care allowance for an individual student is professional judgment

Documentation for Transportation Costs Statement from student regarding mileage to and from classes Statement from mechanic for car repair(s) Copy of mechanic bill Public transportation receiptsAirfare receipts

Changes in Financial Situation Documentation Documentation

Treating Changes in Financial Situations Commonly called: Special Conditions Full verification required – regardless of whether ISIR is selected by federal processor Request Form must be complete and appropriate documentation attached Change in financial situation must take place between January and October 15 of the current yearIncome Protection AllowanceMedical and Dental expenses that could not be itemized on base year tax returnAdditional members or loss of wage earner in household sizeLoss of employment or reduction in hours

Special Circumstances (basically applied against Total Income and/or Federal Taxes Paid) Changes in income Changes in parent marital status Elementary/secondary school tuitionMedical/dental not covered by insuranceHigh child care costParent(s) enrolled in collegeHigh state/local taxes from Schedule A Historically correct:

Documentation of Income Death of the wage earner – certificate Divorce/separation – rent receipts, attorney letter Loss of job – could include severance or other termination benefits. Request copy of termination agreement. Unemployment benefitChanging jobs – employer’s letter listing salary and positions (commissions, bonus)

Estimated Year Income Request year to date pay stub (weekly, monthly) Need to determine new tax paid: proportional if using part of base year IRS tax table (www.irs.gov)

Dependency override Documentation Documentation

Dependency Override Family bears the responsibility for education expenses Willingness to pay not an issue Neither student nor parent can voluntarily seek to absolve the other of the responsibility De facto self-supporting student is not an independent student

Dependency Override Documentation: Letter of explanation from the student and/or family member not in the same householdLetter or documentation from reputable, disinterested, third-party individual or agency

Dependency Override Commonly called: Dependency Appeals Appeal must accompany cover sheet and must be typewritten appropriate documentation Unaccompanied/homeless youthOrphan/ward of the StateHousehold abuse/police interventionRenewal Appeal instructions mailed every January

Minimum standards of academic progress What is SAP? Documentation Documentation

Calculating SAP Qualitative & Qualitative Standards Cumulative Grade Point AverageCompletion RatioMaximum Time frameInfluencersRepeat CourseworkDevelopmental CourseworkChange in majorDate of DeterminationTiming of CalculationsAnnually Every term

Standards of Academic Progress The Appeal Process: Typewritten appeal must be attached to petition and include support documentationReviewers must complete cover sheet with previous 3 decisions and summary of appealCover sheet should include reason for terminationStudents exceeding maximum time frame must provide degree audit or graduation checklistMaximum time frame appeals should be routed to External Committee of faculty and advisors (DFAO)

Consensus Building Making the PJ Decision Individual Decision vs Committee Decision Documentation Documentation

The Individual Difficult to audit-proof the decision made Easy to audit proof the documentation Individual decisions can be questioned Bias and prejudice can be subtle, even unconscious….

The Committee The role of the financial aid administrator is student advocate Prepare appeal and review documentation for appropriateness Recommend outcomes Record proceedingsSenior staffRepresentative from the President’s officeRepresentative from FinanceRepresentative from Student AffairsRepresentative from FACULTY

Maureen Terese ‘mo’ Amos Executive Director of Financial Aid Northeastern Illinois University mtamos@neiu.edu Barrington McNealFinancial Aid AdvisorChicago State Universitybmclean@csu.edu