MASFAA2008

Linda Dagradildagradi@collegeboard.org

Can You Prevent This?Can You Prevent This?

Need-Based AidNeed-Based AidFamily has the first

responsibility to pay for college costs to the extent of its ability!the extent of its ability!

Aid supplements family resourcesAbility may not equal willingness

Challenge is to assess ability

Using PJ requires a good understanding Using PJ requires a good understanding of need analysisof need analysis

Determining the ability to pay/EFC is often the most complex aspect of FA decision-making

Need analysis resources:FM: FSA Handbook, FSA Coach,

(www.ifap.ed.gov)IM: College Board IM manual; institutional policies.

College Board, associations, USED training.

Professional Judgment: What is it?Professional Judgment: What is it?

PJ is the process that enables us to deal with unusual circumstances affecting families’ ability to pay.

PJ is our way to get around one-size-fits-all need analysis.

PJ promotes access by helping us to get aid to students in need.

Professional JudgmentProfessional Judgment

FAA discretion

Unique family financial

circumstances

Decisions vary among

colleges

Where’s our authority to do this?Where’s our authority to do this?

Public funds: the HEA (section 479A) gives us the authority to make “adjustments on a case-by-case basis” in “special circumstances,” with “adequate documentation.” (ref: FSA Handbook: Application & Verification Guide)

Institutional funds: institutional policies governing the scope of adjustments to standard need analysis.

Where do we use PJ?Where do we use PJ?Assessing ability to pay

FM ~ Federal methodology

IM ~ Institutional methodology

Determining the cost of attendance.

Making exceptions to dependency status.

Loss of income

One-time income

Fluctuating income

Non-discretionary expensesElder care, medical, education debt, etc.

Loss of assets

Breakdown or absence of parental relationship

For federal aid, on a case-by-case For federal aid, on a case-by-case basis, we can…basis, we can…

Change the value of a data element in the FM formula (e.g., AGI).

Override dependent student status.

Adjust the cost of attendance.

For federal aid, we For federal aid, we can’tcan’t……Change allowances or add new data

elements to the FM formula.

Simply make a bottom-line change to the FC.

Make an independent student apply as a dependent student.

Make non-financial eligibility problems, such as loan default, go away.

Two important considerationsTwo important considerations

When dealing with unusual family circumstances, we need to keep in mind the difference between choice and necessity.

We should use our judgment to address a family’s inability to pay for college – not its unwillingness to pay.

Initiating the ProcessInitiating the Process

ProactiveFile reviewVerification

ReactiveAppealChange of Circumstance

PJ: ProcessPJ: ProcessDevelop a full understanding of the

situation.

Decide (in committee?) whether it merits an exception.

If it does, adjust FC, COA, or dependency status as appropriate.

Document your reasoning and adjustment.

Communicate your decision to the family.

Document !!!!Document !!!!Audit Trail for Program Review / Audit.

Ability of another aid officer to reach

the same conclusion.

Keep correspondence / notes.

Written justification.

Dates / Names / worksheets / forms

What’s adequate documentation?What’s adequate documentation?

A record that will clearly justify your decision; another aid officer (or an auditor) should be able to understand what you’ve done, why you’ve done it, and how you implemented your decision.

Standardized forms may be helpful, but aren’t necessary.

Have families provide adequate supporting documentation, but be reasonable.

Assess the OutcomeAssess the OutcomeWhat do you believe the outcome of your decision should be?

Will your decision achieve the Will your decision achieve the expected outcome?expected outcome?Can you explain your decision?Can you explain your decision?….will they understand?….will they understand?

Are you maintaining “Equity”?What are the consequences of making this judgment?…. Not making it???

Potential challengesPotential challenges

Are you responding to the facts, or to the people?

Can you make the same decision for every other family that presents this problem?

Are you responding only to the squeaky wheel?

Are you making so many exceptions that you’ve thrown out your usual system?

Are you reluctant? Fearful? Unsure?

Time

Final thoughtsFinal thoughtsResources:

Institutional policies

Experienced colleagues

College Board PJ Tip Sheets

Don’t be afraid to use your judgment. After all, a chimp could be trained to click “Package this student” on a PC.

Be prepared to do the right thing, not Be prepared to do the right thing, not just to do things right.just to do things right.

To give away money is an easy matter ... and in any man's power. But to decide to whom to give it, and how large and when, for what purpose and how, is neither in every man's power nor an easy matter. Hence it is that such excellence is rare, praiseworthy and noble."

Aristotle

Your Your experience?experience?

Questions?Questions?

Issues?Issues?