Extenuating Circumstances

For most students, the FAFSA does a good job of evaluating their family's financial strength. However, it does not do a good job of dealing with students who experience extenuating circumstances. Recognizing that, Congress has given authority to financial aid administrators to use their professional judgment to account for conditions that are out of the norm.

Typically, this authority is used to do one of three things:

  1. Declare a student independent for purposes of completing the FAFSA
  2. Adjust figures on the FAFSA to reflect changes in income or resources
  3. Adjust the Cost of Attendance (COA) to include non-standard educational expenses

Any adjustments made are at the discretion of staff in the financial aid office and must be supported with documentation that can withstand an audit.

Professional Judgment

The FAFSA Simplification Act (the Act) distinguishes between different categories of professional judgment by amending section 479A of the HEA. Special Circumstances refer to the financial situations (loss of a job, etc.) that justify an aid administrator adjusting data elements in the COA or in the EFC calculation. Unusual Circumstances refer to the conditions that justify an aid administrator making an adjustment to a student’s dependency status based on a unique situation (e.g., human trafficking, refugee or asylee status, parental abuse or abandonment, incarceration), more commonly referred to as a dependency override.

A student may have both a special circumstance and an unusual circumstance. Financial aid administrators (FAAs) may make adjustments that are appropriate to each student’s situation with appropriate documentation.  Professional Judgment forms can be found on our forms page under the headline: Professional Judgment.

Special Circumstances

An aid administrator may use PJ on a case-by-case basis to adjust the student’s cost of attendance or the data used to calculate his or her EFC. This adjustment is valid only at the school making the change. The law gives some examples of special circumstances that MAY be considered (HEA Sec. 479A):

  • Change in employment status, income, or assets
  • Change in housing status (e.g., homelessness)
  • Tuition expenses at an elementary or secondary school
  • Medical, dental, or nursing home expenses not covered by insurance
  • Child or dependent care expenses
  • Severe disability of the student or other member of the student’s household
  • Parent passed away after the FAFSA was filed
  • Other changes or adjustments that impact the student’s costs or ability to pay for college.

This is not an exhaustive list. Occasionally aid administrators have made decisions contrary to the professional judgment provision’s intent. These “unreasonable” judgments have included, for example, the reduction of EFCs based on recurring costs such as vacation expenses, tithing expenses, and standard living expenses (e.g. utilities, credit card expenses, children’s allowances, etc.). Aid administrators must make “reasonable” decisions that support the intent of the provision.

Unusual Circumstances

The FAFSA Simplification Act provides a clearer directive for FAAs to assist applicants with unusual circumstances to adjust dependency status on the FAFSA form to reflect students’ situations more accurately (dependency overrides).

Under HEA Sec. 480(d)(9), the FAFSA Simplification Act incorporated additional unusual circumstances to consider when a student is unable to contact a parent or where contact with parents poses a risk to such student.

Unusual circumstances include:

  • Human trafficking, as described in the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101 et seq.);
  • Legally granted refugee or asylum status;
  • Parental abandonment or estrangement;
  • Parental abuse or neglect;
  • Student or parental incarceration.

In such cases a dependency override might be warranted based upon the student’s individual circumstances.

Unusual circumstances do not include:

  • Parents refuse to contribute to the student’s education.
  • Parents will not provide information for the FAFSA or verification.
  • Parents do not claim the student as a dependent for income tax purposes.
  • Student demonstrates total self-sufficiency.

Special Circumstances Documentation Table

This is a listing of some of the documents that may be requested. Since the process is reliant on documentation, please take the time to gather the requested documents and submit documentation along with the Special Circumstance Request form. Place your student’s name and UM Identification # on all contributor (parent) documents so that the documents can be kept together. Also, double-check for signatures and schedules before submitting documents

Special Circumstances Documentation Table

Change in employment status and/or income

1) Submit documentation such as a termination letter from your former employer, unemployment benefits statement, or last pay stub that states ‘last pay stub’.
2) Submit a signed copy of the 2022 federal tax return and all applicable schedules (MUST HAVE handwritten signature of tax filer or full name of tax preparer with ID #) or IRS Tax Return Transcript.
Go to www.irs.gov/transcript to request transcript.
3) Submit copies of W2s or Wage and Income Transcripts to identify the income earner(s).
4) If unemployment documentation is submitted, the documentation must be recent: within 90 days.
5) Alternative documentation: If 2023 or 2024 income is being requested to be used instead of 2022, please provide a signed copy of the 2023 federal tax return and all applicable schedules (or if after January 1, 2025, then submit the 2024 federal tax return and all applicable schedules) or the corresponding year’s IRS Tax Return Transcript. Go to www.irs.gov/transcript to request transcript.

Change in assets

If change to assets, detailed documentation regarding which asset, what it was used for and current value of asset. (Assets are not usually changed but will be evaluated on a case-by-case basis.)

Change in marital status*

1) Submit documentation to verify change in status such as court documents, signed letter from attorney, counselor, pastor, etc.
2) Submit a signed copy of the 2022 federal tax return (MUST HAVE handwritten signature of tax filer or full name of tax preparer with ID #) and all applicable schedules or IRS Tax Return Transcript.
3) Submit a copy of the 2022 Wage and Income Transcript or all W2s for each source of income listed on the 2022 jointly filed federal tax return and all applicable schedules of the contributor who will remain on the FAFSA. Go to www.irs.gov/transcript to request transcript.
4) If a student is changing marital status, we may request the Spousal Worksheet. 

Contributor passed away after FAFSA was filed*

1) Submit copy of death certificate.
2) Submit a signed copy of the 2022 federal tax return and all application schedules (MUST HAVE signature of tax filer or full name of tax preparer with ID #) or IRS Tax Return Transcript.
3) Submit a copy of the 2022 Wage and Income Transcript or all W2s for each source of income listed on the 2022 jointly filed federal tax return of the contributor who will remain on the FAFSA. Go to www.irs.gov/transcript to request transcript.

Change in housing status (e.g. homelessness)

Documentation from authority regarding housing situation such as from:

• A local educational agency homeless liaison (or designee), as designated by the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11432(g)(1)(J)(ii)).
• The director (or designee) of an emergency or transitional shelter, street outreach program, homeless youth drop-in center, or other program serving individuals who are experiencing homelessness.
• The director (or designee) of a Federal TRIO program or a Gaining Early Awareness and Readiness for Undergraduate program (GEAR UP) grant.
• A financial aid administrator at another institution who documented the student’s circumstance in the same or a prior award year. Contact our office to request an appointment to review status, if needed.

Tuition expenses at an elementary or secondary school

Submit documentation of paid tuition. Keep bills to the same tax year.

Additional family members enrolled in college - student must be enrolled half-time or more in a degree-program eligible for federal student aid

1) Provide full name and birthdate of family member, full name of college/university.
2) Explain and provide documentation to verify how the additional family member in college creates a financial hardship. Documents may include financial aid offer letter(s), bank statements, signed tax returns, etc.

Removal of one-time payment or distribution

Provide documentation that will show that the disbursement, support, income or asset is no longer a viable resource. Ex: 1099 forms, court documents, etc.

Rollover of IRA or pension included on 2022 tax return

Submit a copy of the 1099 form that indicates that the IRA or pension distribution was a rollover. If you do not have a copy of the 1099 form, we can take the 2022 Wage and Income Transcript or a signed copy of the 2022 tax return that listed ROLLOVER.

Medical, dental, or nursing home expenses not covered by insurance

Submit documentation to verify the amount that insurance did not cover (out-of-pocket amount). If you are submitting multiple
bills/documents, please also itemize and number your documents so we can keep track of the amounts being requested. We can also accept Schedule A if the expenses were listed on the tax return. Keep bills to the same tax year. Amount must exceed 11% of the Income Protection Amount from the FAFSA calculations since a portion of the income is already protected in federal methodology.

Child or dependent care expenses

See Budget Increase Request Form.

Severe disability of the student or other members of the student’s household

Submit documentation of expenses paid. Keep bills to same tax year.

Other changes or adjustments that impact the students’ costs or ability to afford college

Documentation to support assertion.

TIPS:

Please contact the office if you have any difficulty gathering required documents, have questions or need another option for document submission. Call (406) 246-5373 or visit Aber Hall, 5th floor.

* If submitting copy of 1040 tax form, double-check that the tax filer has signed the second page where it states SIGN HERE using a handwritten signature using a ‘wet ink’ pen or finger/stylus.
* All schedules must be submitted along with the signed 1040 tax form. In lieu of the 1040, we can accept the IRS Tax Return Transcript with in often more helpful as all the information required in on one document and the tax filer isn’t needing to search for the schedules. Signed foreign tax returns are also acceptable.

We often have to pause processing due to complete documentation not being submitted so please take the time to double-check. Students may check the status of the Special Circumstances request on CyberBear and also via their UM email account.
Also, don’t forget to write the student’s name and ID # that starts with 790 on all documents.

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