Whether or not the U.S. Secretary of Education will order Saint Louis University to refund up to $2.8 million in Pell Grant money remains unknown. The final decision depends, in part, on SLU’s use of “professional judgment” to award grants.

Based on the 1997 audit of Pell Grants awarded from 1994-96, SLU used professional judgment in 46 percent of its Pell Grant recipients. According to the Department of Education’s Office of Student Financial Assistance Programs (SFAP), the average number of cases in which professional judgment is used-for all institutions that distribute Pell Grant awards-is 4 percent.

The DOE defines professional judgment as a financial aid administrator’s ability to consider an applicant’s special circumstances, including medical or dental expenses not covered by insurance, or additional tuition expenses at elementary or secondary schools.

Other schools fall within the recommended range. Bradley University exercised professional judgment in approximately 4.2 percent of financial-aid applications. “We perform professional judgment on different situations,” said David Pardieck, director of financial aid at Bradley. “Such situations include changes in marital status, changes in income or job loss.”

Pardieck added that proper documentation of these special cases requires applicants to provide statements and other documents-such as tax forms or a third-party letter-explaining their situations.

Robert Walker, financial-aid director at Creighton University, said that his office has exercised professional judgment for approximately 1 to 2 percent of aid applicants. Walker said professional judgment is used only in situations in which the student’s dependent/independent status is questioned.

Walker said that he understands the need for the guidelines set by the DOE. “We might be considered stingy, but there is the philosophy that students and their parents need to put their best side forward first, and then we’ll do our best to see what we can do,” Walker said.

John Parker, Drake University’s director of financial assistance, agreed that the DOE’s guidelines for using professional judgment are not unreasonable. “I think they’re right where they should be,” Parker said. “There will always be concern about how other schools are exercising professional judgment.” Parker said that professional judgment was used in five percent of 550 financial-aid applicants this year at Drake.

Parker said that whether or not professional judgment should be exercised depends on the situation passing two tests-a subjective test of reasonability and an objective documentation test.

The documentation test typically requires two to three third-party statements, such as tax forms or letters from social workers or employers.

“I think a lot of colleges have gone back and looked at their own programs, asking `Are we too close to the edge?'” Pardieck said.

After the 1997 audit, based on a sampling of 139 students, the DOE determined that SLU should refund $2.6 million because of its inappropriate use of professional judgment “without determining if special circumstances existed.”

Although the DOE can recommend establishing regulations for professional judgment use, it cannot regulate the needs-analysis formula that colleges use in determining financial-aid eligibility. “We have no plans to put forth any legislative proposals on this issue,” stated a spokesperson from the DOE’s Office of Public Affairs.

The original liability amount stated in the OIG’s 1997 audit was $2,599,709.

According to an OIG spokesperson, SFAP disallowed more costs when it presented the case to the OHA. The actual liability amount stated in the OHA’s ruling was $2,816,029.

SLU’s liability was originally dismissed in May 2000 by the Department of Education’s Office of Hearing and Appeals (OHA). The DOE’s Office of Inspector General (OIG) made the initial recommendation that SLU refund the money, after a 1997 audit of student financial aid distributed for the years 1994-95 and 1995-96.

The DOE appealed the OHA’s ruling to the U.S. Secretary of Education on June 29.

How long it will be before the Secretary of Education makes a decision is unknown.