What does a school need to complete before making any Professional Judgment adjustment related to a student's Expected Family Contribution (EFC)?

• A. A student's statement of circumstances
• B. Verification of data elements used for EFC calculation
• C. Third-party statements from parents
• D. Assessment of dependency status

Answer: (B)

A school must verify data elements used for the Expected Family Contribution (EFC) calculation before making any Professional Judgment adjustments. This verification process ensures that the information used to calculate a student's EFC is accurate and reliable. Professional Judgment is meant to account for special cases where the standard data might not adequately reflect a student's financial situation; thus, starting with verified data helps maintain the integrity and fairness of the adjustment process.

Accurate verification is crucial as it forms the basis upon which any adjustments will be made. This ensures consistency and compliance with federal financial aid regulations, which prioritize accurate information in determining a student's financial aid eligibility.

In contrast, while a statement of circumstances or third-party statements can provide valuable context for the Professional Judgment decision, they should be considered after the official data has been verified. Assessing dependency status is also important, but its assessment follows the accurate verification of the financial data that impacts the EFC.