limited	to)	posting	what	may	be	considered	a	special	circumstance	on	your	website,	including	such	information	in
communications	to	students,	or	adding	language	on	award	notifications.
The	reason	for	your	decision	to	approve	or	deny	a	request	for	professional	judgment	and	any	subsequent	adjustments
must	be	documented.	The	documentation	must	substantiate	the	special	circumstances	that	differentiate	the	student4
not	conditions	that	exist	for	a	whole	class	of	students.	Documentation	can	include	a	documented	interview	between	the
student	and	the	financial	aid	administrator	and	supplementary	information,	as	necessary,	about	the	student9s	financial
status	relating	to	the	special	circumstances	for	which	the	student	is	requesting	an	adjustment.	You	must	resolve	any
inconsistent	or	conflicting	information	before	making	any	adjustments.	An	FAA9s	decision	regarding	adjustments	is	final
and	cannot	be	appealed	to	the	Department.
The	law	doesn9t	allow	you	to	modify	either	the	formula	or	the	tables	used	in	the	SAI	calculation;	you	can	only
change	the	cost	of	attendance	components,	or	the	values	of	specific	data	elements	used	in	the	SAI	calculation.	In
addition,	you	cannot	adjust	data	elements	or	the	cost	of	attendance	solely	because	you	believe	the	tables	and	formula	are
not	adequate	or	appropriate.	The	data	elements	that	are	adjusted	must	relate	to	the	student9s	special	circumstances.	For
example,	if	a	family	member	is	ill,	you	might	modify	the	AGI	to	allow	for	lower	earnings	in	the	coming	year	or	might	adjust
assets	to	indicate	that	family	savings	will	be	spent	on	medical	expenses.
You	also	cannot	use	PJ	to	waive	general	student	eligibility	requirements	or	to	circumvent	the	intent	of	the	law	or
regulations.	For	instance,	you	cannot	use	PJ	to	change	FSEOG	selection	criteria.
Occasionally	FAAs	have	made	decisions	contrary	to	the	professional	judgment	provision9s	intent.	These	<unreasonable=
judgments	have	included,	for	example,	the	reduction	of	income	or	AGI	based	on	recurring	costs	such	as	vacation
expenses,	tithing	expenses,	and	standard	living	expenses	(e.g.	utilities,	credit	card	expenses,	children9s	allowances,	etc.).
FAAs	must	make	<reasonable=	decisions	that	support	the	intent	of	the	law.	Your	school	is	accountable	for	all	professional
judgment	decisions	and	for	fully	documenting	each	decision.
When	considering	using	PJ,	an	FAA	should	keep	in	mind	that	an	income	protection	allowance	(IPA)	is	included	in	the	SAI
calculation	to	account	for	modest	living	expenses.	Before	adjusting	for	an	unusual	expense,	consider	whether	it	is	already
covered	by	the	IPA.	It	is	reasonable	to	assume	that	approximately	30%	of	the	IPA	is	for	food,	22%	for	housing,	9%	for
transportation	expenses,	16%	for	clothing	and	personal	care,	11%	for	medical	care,	and	12%	for	other	family
consumption.	The	income	protection	allowance	is	one	of	the	intermediate	values	in	the	FAA	Information	section	of	the
output	document	(labeled	as	<IPA=).	See	Chapter	3	for	the	IPA	values	and	how	they	impact	the	student9s	SAI	calculation.
If	you	use	professional	judgment	to	adjust	a	data	element,	you	must	use	the	resulting	SAI	consistently	for	all	Title	IV	aid
awarded	to	that	student.	For	example,	if	for	awarding	the	student9s	Pell	Grant	you	adjust	a	data	element	that	affects	the
SAI,	that	new	SAI	must	also	be	used	to	determine	the	student9s	eligibility	for	aid	from	the	Campus-Based	and	Direct	Loan
programs.
If	you	make	a	PJ	adjustment,	you	must	set	the	FAA	Adjustment	flag.	You	submit	a	PJ	change	electronically,	via	the
FAFSA	Partner	Portal	or	third-party	software	and	may	do	so	without	a	signature	from	the	student	or	parent.	In	the	FAFSA
Partner	Portal	or	Electronic	Data	Exchange	(EDE),	you	must	select	<	yes=	for	the	professional	judgment	field.	The	next	ISIR
will	indicate	<Professional	judgment	processed.=
If	you	exercise	PJ	for	a	student	who	was	selected	for	verification	(by	you	or	the	Department),	you	must	complete
verification	first.	This	is	to	ensure	that	you	have	correct	information	before	considering	a	PJ	adjustment.	You	may,
Note:	You	must	set	the	FAA	Adjustment	flag	(sometimes	called	the	<PJ	Flag=)	even	in	some	situations	when	you
have	not	exercised	professional	judgment.	Certain	FPS	requirements,	new	for	the	2024-25	processing	cycle	and
continuing	in	the	2025-26	cycle,	require	you	to	set	the	PJ	Flag	to	override	FTI	received	directly	from	the	IRS.	The
Department	released	the	following	guidance	on	these	unique	situations:
Resolving	Conflicting	Information	(Electronic	Announcement	GENERAL-24-71)
Puerto	Rico	and	other	U.S.	Territories	Dual	Tax	Filers	(Electronic	Announcement	GENERAL-23-118)
If	additional	unique	situations	arise,	the	Department	will	post	additional	guidance	in	the	Knowledge	Center.
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