<p>The Dept of Ed is urging FA admins to look at ways to help students and families to the utmost extent within the rules this year. They’re basically asking them to use their professional judgement to adjust EFC’s where possible/appropriate.</p>
<p>From the 4/2/09 letter from DoE’s “Dear Colleague” letter:</p>
<p>Your thoughtful use of professional judgment, especially to address a student’s financial and family circumstances that may have changed from the base year information originally reported on the student’s FAFSA, may be critical in determining whether the student can enter or continue in postsecondary education. A changed circumstance certainly includes the loss of a job or a reduction in work hours or wages, but it also includes, for example, the income loss associated with a prospective student’s decision to leave the workforce or to reduce work hours in order to return to school.</p>
<p>When you make adjustments related to the student’s or the student’s family’s income, it is appropriate to use information that realistically reflects the individual’s and/or family’s current and near-term economic situation. For example, for an individual who has lost a job or has taken a significant salary cut beginning in November of 2008, you may choose to project income for the next 12-month period (December 2008 through November 2009) and use that figure instead of the base year income (calendar 2008) that was initially used in the calculation of the student’s expected family contribution (EFC). Of course, you should seek to obtain, and maintain verifiable third-party documentation of the changed circumstances in order to support your decision to use professional judgment. By way of example, if an individual has lost a job, and you choose to project income for the next 12-month period, you should seek to obtain adequate documentation of the individual’s loss of employment.</p>
<p>[IFAP</a> - Dear Colleague Letters](<a href=“http://www.ifap.ed.gov/dpcletters/GEN0904.html]IFAP”>http://www.ifap.ed.gov/dpcletters/GEN0904.html)</p>