August 17, 2021
Department of Education Provides Update and Clarifies Rules on Professional Judgement
On August 16th, 2021, the Department of Education (ED)’s Office of Federal Student Aid (FSA) provided an update to their “Professional Judgement” Dear Colleague issued on January 29th, 2021. Professional judgement gives financial aid administrators (FAA) the ability to adjust, on a case-by-case basis, the cost of attendance or the values of the items used in calculating the expected family contribution (EFC) to reflect a student’s special circumstances.
The dear colleague issued on January 29th clarified that FAAs could utilize proof of unemployment benefits to adjust a student's EFC and provide additional financial aid; it also clarified that ED will not negatively view increased use of professional judgment or use it as a selection criterion for a program compliance review for the 2021-22 award year.
The August 16th update indicates that the Departments of Education and Labor are partnering with states to ensure Unemployment Insurance recipients are aware of their potential eligibility for Pell Grants and other funding and to encourage them to enroll in postsecondary education. It also reiterates that financial aid administrators can use proof of unemployment insurance to make the adjustment to a student’s EFC.
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