April 10, 2009

ED Posts 'Professional Judgment' DCL

On April 2, the U.S. Department of Education (ED) issued Dear Colleague Letter (DCL) GEN-09-04, which addresses the use of professional judgment by financial aid administrators. This DCL reminds financial aid administrators of their ability to exercise professional judgment when determining a student’s eligibility for federal student aid. Financial aid administrators are also encouraged to consider special circumstances of students and families affected by the economic downturn. Many students and families don’t know about their right to request an adjustment to one or more components that determine their eligibility for financial aid.

Financial aid administrators are encouraged to use professional judgment on a case-by-case basis to address a student's financial and family circumstances that differ from information originally reflected on the student's Free Application for Federal Student Aid (FAFSA). Professional judgment must only be used to address special circumstances and conditions that differentiate an individual student from a class of students. Such circumstances could include:

• Loss of a job or reduction in work hours or wages.
• Costly medical situations.
• Loss of a house due to foreclosure.
• Loss of income associated with a prospective student's decision to leave the workforce or to reduce work hours in order to return to school.

For more information about the use of professional judgment, financial aid administrators can refer to pp. 99-100 of the Application and Verification Guide in the 2008-2009 Federal Student Aid Handbook.

If you have questions, contact OGSLP’s Policy, Compliance, and Training department at 405.234.4432 or pct@ogslp.org.

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