FAFSA Special Circumstances and Professional Judgment

Question 1

What is 'professional judgment' in the context of financial aid?

Accepted Answer

The authority of a financial aid administrator to adjust a student's aid package based on special circumstances

Answer

Professional judgment is the authority granted to financial aid administrators (FAAs) to adjust a student's aid eligibility based on documented special or unusual circumstances not reflected in the standard FAFSA data.

Question 2

Which federal law grants financial aid administrators the authority to use professional judgment?

Accepted Answer

Section 479A of the Higher Education Act

Answer

Section 479A of the Higher Education Act of 1965 explicitly grants financial aid administrators the authority to make professional judgment adjustments on a case-by-case basis.

Question 3

Who has the authority to approve a professional judgment adjustment at a college or university?

Accepted Answer

The financial aid administrator at the institution

Answer

Only the financial aid administrator (FAA) at the student's institution has the authority to approve professional judgment adjustments; the federal government delegates this discretion to the school.

Question 4

Which of the following is a common reason a student might request a professional judgment review?

Accepted Answer

A parent recently lost their job after the FAFSA was filed

Answer

A significant change in a family's financial situation—such as a parent's job loss occurring after the FAFSA was submitted—is a classic example of a special circumstance that justifies a professional judgment review.

Question 5

What must a financial aid administrator do when making a professional judgment adjustment?

Accepted Answer

Document the reason for the adjustment and retain it in the student's file

Answer

FAAs are required by law to document the specific reason for any professional judgment adjustment and retain that documentation in the student's file for audit purposes.

FAFSA Practice Test

FAFSA Practice Test

FAFSA Special Circumstances and Professional Judgment