Maintain Professional Judgment in Federal Need Analysis

Current Situation:

Section 479A of the Higher Education Act gives financial aid administrators the ability to revise the Federal Expected Family Contribution through the exercise of professional judgment (PJ). This process must occur on a case by case basis in relation change(s) in data rather than methodology. Examples of situations deemed important for the exercise of professional judgment are cited in the statute. They include: elementary/secondary school expenses; unusual medical and dental expenses; high child-care costs; unemployment; parents' post-secondary school expenses; changes in family income or assets; changes in student status; foreclosure, forfeiture, bankruptcy of business or farm; involuntary liquidation of business or farm.

Issue:

The continuation of professional judgment has been questioned. Referenced are situations in which it may have been exercised poorly or too frequently, making standard cases eligible for professional judgment.

Proposal:

Maintain professional judgment and emphasize the importance of exercising professional judgment when students and families are in difficult situations.

Possible Objections:

Educational institutions are unable to exercise it properly. It gives too much discretion to financial aid administrators.

Counter Argument:

Helping families whose circumstances put them outside of the standard system is a responsibility that must be met in order for the federal system to treat families fairly. In the current economic climate, the need to respond to unemployment, wage reductions, and wage freezes is particularly acute. Training programs for financial aid administrators and continued monitoring by the Department of Education should be effective tools in achieving consistency and professionalism in the application of professional judgment.