2020-21AUTHORIZED EVENTS
CREDENTIALEDTRAINING
PROFESSIONAL JUDGMENT Part 2
Slide Handout
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June 2020
NASFAA’s 2020 Summer Training SeriesProfessional Judgment – Part 2
A NASFAA Authorized EventPresented June 23, 2020
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National Association of StudentFinancial Aid Administrators
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Professional JudgmentA NASFAA Authorized Event
Presented byTonya Hsiung and Joe Massman
June 23, 2020
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A NASFAA Authorized EventPresented June 23, 2020
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Using Professional Judgment in Originating
Direct Loans
Lesson 3
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Denial or Reduction of Direct Loan Eligibility• Case-by-case basis
• Document the decision
• Notify borrower, in writing
• Do not discriminate on the basis of race,national origin, religion, sex, marital status,age, disability status, or income
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ApplicationApplication
• Parent is incarcerated• Parent’s only source of income is
public assistance or disability benefits
• Parent’s income/debt ratio indicates inability to repay PLUS
• Parent is incarcerated• Parent’s only source of income is
public assistance or disability benefits
• Parent’s income/debt ratio indicates inability to repay PLUS
Reasons for denying or reducing a
Direct PLUS
Reasons for denying or reducing a
Direct PLUS
Reasons for denying or reducing
loan eligibility
Reasons for denying or reducing
loan eligibility
• High debt burden • Borrower’s unwillingness to
repay the loan
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NASFAA’s 2020 Summer Training SeriesProfessional Judgment – Part 2
A NASFAA Authorized EventPresented June 23, 2020
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Documentation
Borrower Third-Party
Conversation with the borrower
Signed statement from borrower of
unwillingness to repay
Documentation of previous history of
unwillingness to repay
NSLDS shows high debt burden
Documentation from career services office
showing average starting salaries in
various fields
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• Rachel overhears a conversation
• Michael states he is not going torepay his loans
• Michael is Rachel’s next counselingappointment
Example: Michael
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If you were Rachel, would you take what you heard seriously and consider either denying or reducing Michael’s loan based upon what you overheard? Yes, I would deny or reduce Michael’s loan.
No, I would not deny or reduce Michael’sloan.
I’m not sure.
Poll
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• Rachel asks follow-up questions– Michael’s plans after college
– Michael’s intent
• Rachel’s explicitly asks Michael if he plans topay back the loans
• Michael states he does not play to pay back hisloans
Example: Michael
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With this new information, would you now consider denying or reducing Michael’s loan?
Yes, I would deny or reduce Michael’s loan.
No, I would not deny or reduce Michael’sloan.
I’m not sure.
Poll
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• Rachel documents conversation– Follows up with Director
• Rachel sends email to Michael– States school’s decision and why it was made
– Provides other financing options
Example: Michael
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NASFAA’s 2020 Summer Training SeriesProfessional Judgment – Part 2
A NASFAA Authorized EventPresented June 23, 2020
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Direct Unsubsidized Loan for Dependent Student without Parental Data• Option available to students whose parents
ended financial support and refuse to filethe FAFSA
• Parent refusal to file the FAFSA is notgrounds for a dependency override
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Signed statement
from student
Signed statement from
third party
Signed statement
from parent(s)
Documentation
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• Eva is a junior
• Applied as dependent for theprevious two years
• Recent argument with her parents resulted intheir refusal to provide FAFSA information
• Eva is living with a relative
• Tom meets with Eva to discuss her situation
Example: Eva
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Does Eva’s situation warrant special consideration? Yes, Eva should qualify for the Direct
Unsubsidized Loan for a dependent withoutparental data.
No, Eva should not qualify for the DirectUnsubsidized Loan for a dependent withoutparental data.
I’m not sure.
Poll
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• BRMC requests documentation– Written statement
– Letter from parents
– IRS tax return or tax return transcript from Eva
• Eva’s parents respond via email
• ISIR received with parent signature
Example: Eva
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• Kayleigh is a sophomore
• Last year her mother, Marguerite,was denied the Direct PLUS Loan– Kayleigh borrower the additional unsubsidized lo
• This year, Marguerite was approved the DirectPLUS Loan
• Marguerite asks you to deny the Direct PLUSLoan
Example: Kayleigh
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Would you deny it so Kayleigh could access the additional unsubsidized loan? Yes, I would deny Marguerite’s Direct PLUS
Loan.
No, I would not deny Marguerite’s Direct PLUSLoan.
I’m not sure.
Poll
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• Should obtain more information
• Marguerite’s credit may have improved,but her financial situation may not have
• With additional documentation, you may beable to warrant the refusal of the Direct PLU
Example: Kayleigh
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Using Professional Judgment in Satisfactory
Academic Progress
Lesson 4
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“Same as or stricter than”“Same as or stricter than”
Qualitative (grades)
Qualitative (grades)
Maximum timeframeMaximum timeframe
Quantitative (pace)
Quantitative (pace)
Frequency of
evaluation
Frequency of
evaluation
Appeal ProcessAppeal Process
SAP Standards
SAP Standards
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Frequency of Evaluation
• Programs one academic year (AY) or lessmust evaluate SAP after each paymentperiod
• Programs longer than one AY may evaluate:– Annually at end of a payment period; or
– After each payment period
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SAP Appeals and PJ
• Financial aid warning allows Title IV aid for onemore payment period only
– Available only to schools that monitor SAP at theend of each payment period
• Options on successful appeal:– Financial aid probation status for one payment
period if the student should be able to meet SAPstandards by the end of the payment period; or
– An academic plan under which the student cancontinue to receive Title IV aid as long as thestudent complies with the plan’s requirements
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May use PJ to waive SAP standards due to undue hardships on case-by-case basis:
Exercising PJ
Death of student’s relative
Student’s personal injury or illness
Special circumstances determined by institution
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PJ Documentation for SAPCIRCUMSTANCE TYPE OF DOCUMENTATION
Death of a relative of the student
Copy of official death certificate
Statement from adult family member or physician
Personal injury or illness of the student
Signed statement from student’s physician
Accident or police report
Family difficulties, such as divorce or illness
Copies of official legal documents
Signed statement from physician
Signed statement from an involved third party (e.g., counselor, clergy, lawyer, etc.)
Interpersonal problems with friends, roommates, or others
Signed statement from an involved third party (e.g., resident advisor, school counselor, etc.)
Time management difficulties
Documentation illustrating commitments outside of school (e.g., pay stubs, etc.)
Tangible steps for improvement
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PJ Documentation for SAP
Have these circumstances created an undue hardship on the student that caused the student’s inability to meet the SAP standards?
Have the barriers to academic progress been removed or sufficiently managed to permit reasonable expectations for future academic progress?
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Quick Quiz:
1. A SAP appeals process is: required by federal regulation at all institutions awarding
Title IV aid. optional at the institution’s discretion. required to be processed by an institution in groups of
students with the same situation. allowed only after a term of financial aid probation has
been completed.
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Quick Quiz:
1. A SAP appeals process is: required by federal regulation at all institutions awarding
Title IV aid. optional at the institution’s discretion. required to be processed by an institution in groups of
students with the same situation. allowed only after a term of financial aid probation has
been completed.
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Quick Quiz:
2. In cases where one payment period is not sufficient for the student to meet minimum SAP standards, an institution may consider which of the following? Using PJ to grant a SAP appeal and then placing the
student on financial aid probation Using PJ to grant a SAP appeal and then placing the
student on an academic plan with appropriate checkpoints and milestones to be achieved by the student
Using PJ to grant a SAP appeal and then placing the student on financial aid warning
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Quick Quiz:
2. In cases where one payment period is not sufficient for the student to meet minimum SAP standards, an institution may consider which of the following? Using PJ to grant a SAP appeal and then placing the
student on financial aid probation Using PJ to grant a SAP appeal and then placing the
student on an academic plan with appropriate checkpoints and milestones to be achieved by the student
Using PJ to grant a SAP appeal and then placing the student on financial aid warning
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Quick Quiz:
3. A student on financial aid probation must meet the minimum SAP standards: at the end of the next payment period. before progressing to a new grade level. at the end of the current academic year. before final approval is given for the student’s SAP
appeal.
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Quick Quiz:
3. A student on financial aid probation must meet the minimum SAP standards: at the end of the next payment period. before progressing to a new grade level. at the end of the current academic year. before final approval is given for the student’s SAP
appeal.
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Quick Quiz:
4. Each of the following are specified in the SAP regulations as conditions under which a SAP appeal may be considered, EXCEPT: Death of a relative Injury or illness of the student Other special circumstances, as determined by ED Other special circumstance, as determined by the
institution
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Quick Quiz:
4. Each of the following are specified in the SAP regulations as conditions under which a SAP appeal may be considered, EXCEPT: Death of a relative Injury or illness of the student Other special circumstances, as determined by ED Other special circumstance, as determined by the
institution
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Learning Activity
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A NASFAA Authorized EventPresented June 23, 2020
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Learning Activity: PJ Case Study 1—Aryia
• Aryia is struggling to balance school, her 30 hours/week part-time job, and raising her infant son as a single parent
• Before having her son, her cumulative GPA was just over a 3.0, although she had withdrawn from a number of courses
• Since having her son, Aryia withdrew from many of the credits for which she registered, leaving her with a cumulative pace of 64%
• Aryia has not met the required quantitative standard• Aryia would like to appeal her SAP standing• With improved performance, she could possibly regain SAP
by the end of the next payment period
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Learning Activity: PJ Case Study 1—Aryia
1. Does she have mitigating circumstances that may warrant a waiver of SAP standards? Yes No
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Learning Activity: PJ Case Study 1—Aryia
1. Does she have mitigating circumstances that may warrant a waiver of SAP standards? Yes No
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Learning Activity: PJ Case Study 1—Aryia
2. What type of documentation must she provide? A letter of recommendation from her instructors A certificate of approval from ED An explanation of why she failed to meet SAP, and
what has changed that will enable her to successfully meet SAP requirements going forward
Chocolate. Lots and lots of chocolate.
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Learning Activity: PJ Case Study 1—Aryia
2. What type of documentation must she provide? A letter of recommendation from her instructors A certificate of approval from ED An explanation of why she failed to meet SAP, and
what has changed that will enable her to successfully meet SAP requirements going forward
Chocolate. Lots and lots of chocolate.
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Learning Activity: PJ Case Study 1—Aryia
3. What other documentation would you request (select all that apply)? Letter of support from her job supervisor Pay stubs that document her hours worked Letter of support from her daycare provider Other
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Learning Activity: PJ Case Study 1—Aryia
4. Which option is NOT available as a response to the SAP appeal? She can be placed on financial aid probation for the
next payment period She can be placed immediately on an academic plan
with certain conditions The school can recommend that she take time off from
her studies to adjust to her circumstances and develop a routine with adequate time to study
The school can grant academic amnesty and not count any of the student’s past grades against future SAP
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Learning Activity: PJ Case Study 1—Aryia
4. Which option is NOT available as a response to the SAP appeal? She can be placed on financial aid probation for the
next payment period She can be placed immediately on an academic plan
with certain conditions The school can recommend that she take time off from
her studies to adjust to her circumstances and develop a routine with adequate time to study
The school can grant academic amnesty and not count any of the student’s past grades against future SAP
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Learning Activity
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Learning Activity: PJ Case Study 2—Tyrion
• During fall break, Tyrion had a skiing accident and encountered physical complications, which resulted in him missing quite a bit of school
• His current GPA is not consistent with graduation requirements and he no longer meets Winterfell’s SAP standards
• He has filed an appeal of his SAP determination • Tyrion’s past academic performance has not been
outstanding, and he cannot regain SAP after just one term
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Learning Activity: PJ Case Study 2—Tyrion
1. Does he have mitigating circumstances that may warrant a waiver of SAP standards? Yes No
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Learning Activity: PJ Case Study 2—Tyrion
1. Does he have mitigating circumstances that may warrant a waiver of SAP standards? Yes No
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Learning Activity: PJ Case Study 2—Tyrion
2. What supporting documentation would you request (select all that apply)? Letter from his physician explaining that the medical
condition will not linger into the upcoming academic year
Police or accident report A substantial donation to the office coffee fund Other
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Learning Activity: PJ Case Study 2—Tyrion
3. If Tyrion’s appeal is approved, can he be placed on financial aid probation? Yes No
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Learning Activity: PJ Case Study 2—Tyrion
3. If Tyrion’s appeal is approved, can he be placed on financial aid probation? Yes No
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NASFAA’s 2020 Summer Training SeriesProfessional Judgment – Part 2
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Credential Test Overview
• Must fully attended Part 1 and 2• Receive credential test access information email
within a week of viewing webinar– Must complete credential test within 40 days of receiving
email• Test
– 90 minutes– Open-book– 45 to 55 multiple choice– Two attempts– Printable certificate
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Submit Your Questions
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What’s next?NASFAA’s live webinars bring you the latest information, hot off the press, and allow you to actively engage with NASFAA staff and featured presenters from government, partner organizations, and fellow aid administrators.
On Demand Webinars are recordings of previously broadcasted events. The recordings are available for purchase and viewing at your convenience.
All webinars begin at 2:00 pm ET, unless otherwise noted, and last 60 to 90 minutes. Archives are usually available after the webinar for purchase; these archives are also free to webinar package purchasers.
Webinar Schedule for 2020-21 - See You Online!Topic Air Date
2021-22 Verification Basics 08/26/2020
Foundations of Academic Calendars 09/23/2020
2021-22 FAFSA Update 10/07/2020
Verification - Challenging Questions and Scenarios - Extended Edition 10/28/2020
Don’t Be Alarmed By Clock Hours! 11/18/2020
Economics of Financial Aid 12/09/2020
NASFAA Policy Update (complimentary to members) 12/15/2020
Developing Your Talents As A Financial Aid Professional 01/20/2021
Just Keep Swimming: An Aid Professional’s Experience with Mental Health Issues
02/24/2021
Graduate and Professional School Town Hall 2020-21* 03/09/2021
Panel Discussion - Data Sharing and Security 03/24/2021
NASFAA Quiz Show 04/21/2021
Consortium Agreements, Written Arrangements & Study Abroad 05/19/2021
NASFAA Policy Update (complimentary to members) 05/25/2021
Student Eligibility Spotlight 06/09/2021
* Complimentary for all Members. All other webinars are offered at the following rates: Site License:$120 members/$240 non-members/no charge for webinar package purchasers or Value Plus Members.
Please join us for the 2020-21 NASFAA Webinar Series
This listing is current as of June 14, 2020. For additions and changes to this schedule, visit www.nasfaa.org/Webinars_Live_and_On_Demand
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