NASFAA U Self-Study Guide: Professional Judgment - Award ...

NASFAA U

SELF-STUDY GUIDES

PROFESSIONAL JUDGMENT

AWARD YEAR 2020-21 ? ISSUE DATE APRIL 2020

CREDENTIALED TRAINING

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April 2020

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Get the credit YOU deserve!

NASFAA U offers a nationally-recognized, consistent, and rigorous program of education in administering the Title IV student financial aid programs. Both new and seasoned financial aid professionals will benefit

from a NASFAA U education, helping you to become more proficient, more knowledgeable, and more valuable to your organization--all while working towards earning a professional credential from NASFAA.

ONLINE COURSE TOPICS INCLUDE:

Overview of the Financial Aid Programs

Verification Return of Title IV Funds Satisfactory Academic Progress

Student Eligibility Campus-Based Programs

Cost of Attendance

Federal Pell Grants & Iraq and Afghanistan Service Grants

Consumer Information

Direct Loans

Nontraditional Calendars and Programs: The Title IV Implications

Need Analysis Packaging and Notification of Awards Professional Judgment Cash Management Administrative Capability Application Processing

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NASFAA U Self-Study Guide

2020-21 Professional Judgment

Table of Contents

Lesson 1: Overview of Professional Judgment Authority .....................................................................................1 Lesson 2: Using Professional Judgment in Need Analysis.................................................................................37 Lesson 3: Using Professional Judgment in Originating Direct Loans .................................................................69 Lesson 4: Using Professional Judgment in Satisfactory Academic Progress.....................................................81 Glossary for Professional Judgment.................................................................................................................105 These training materials are designed for individual use, as well as for in-person instruction during NASFAA U Authorized Events, such as workshops and institutes. The effectiveness of the learning experience depends on utilization of the quizzes, learning activities and reflective exercises provided.

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NASFAA U Self-Study Guide: Professional Judgment

Lesson 1: Overview of Professional Judgment Authority

Learning Objectives After completing this lesson, you will understand the:

? Meaning, purpose, and underlying principles of professional judgment (PJ);

? Areas of financial aid administration to which PJ may be applied; and

? General documentation requirements applicable when exercising PJ.

Key Concepts The key concepts you will learn in this lesson:

? PJ authority;

? Definition of PJ;

? Special circumstances;

? Purpose and principles of PJ;

? PJ policies and procedures;

? PJ triggers;

? Areas of PJ;

? Areas where PJ does not apply;

? Role of PJ documentation; and

? Types of PJ documentation.

Professional Judgment Authority

Introduction

Professional judgment (PJ) is sometimes viewed as one of the more challenging aspects of Title IV program administration. There are both explicit and implicit guidelines that must be followed in relation to other aspects of Title IV federal student aid administration.

The law delegates the authority to the financial aid administrator to make the decision when students and families have special circumstances.

In this self-study guide we will:

? Define PJ and discuss its significance;

? Identify the specific areas where the statute authorizes the exercise of PJ;

? Explain the importance of documentation; and

? Provide some guidelines for establishing PJ policies and procedures.

Statutory Authority

Section 479A of the Higher Education Act of 1965 (HEA), as amended, provides the statutory authority for the financial aid administrator to exercise discretion in a number of areas such as dependency status, need analysis, data elements used in the calculation of the expected family contribution (EFC), costs within the cost of attendance (COA) components, student or parent Federal Direct Student Loan (Direct Loan) eligibility, and Direct Unsubsidized Loan eligibility for students whose parents refuse to complete the Free Application for Federal Student Aid (FAFSA). This authority is known as professional judgment and allows for the individual treatment of a student who has special circumstances that are not sufficiently addressed by the standardized federal student aid formulas and delivery methods.

This statutory authority was enacted as part of the Higher Education Amendments of 1986, and it granted the financial aid administrator authority to exercise PJ in all Title IV programs. However, nothing requires a financial aid administrator or school to use this discretion.

For the full statutory text of HEA Section 479A, refer to page 14. Different statutory citations apply to other areas where a financial aid administrator may exercise PJ, such as satisfactory academic progress (SAP). These requirements and suggestions specific to each of the different areas will be covered in the following lessons.

? 2020 NASFAA

Professional Judgment: Lesson 1

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