**SUPPORTING STATEMENT**

Information Collections Under the Final Regulations Governing the
Federal Family Education Loan Program.

**A. Justification**

1.  **Necessity of Information Collected**

> The Federal Family Education Loan (FFEL) Program final regulations
> revise the current regulations for program administration.
>
> These final regulations are a result of regulatory review of the
> program regulations to reduce administrative burden for program
> participants, provide benefits to borrowers, and protect the
> taxpayers\' interest. This request is for approval of reporting and
> recordkeeping requirements contained in the attached final regulations
> related to the administrative requirements of the FFEL Program. The
> information collection requirements in these final regulations are
> necessary to determine eligibility to receive program benefits and to
> prevent fraud and abuse of program funds.
>
> **FFELP:** (OMB control number: 1845-0020)
>
> Sections 682.200, 682.208, 682.209, 682.210, 682.211, 682.401,
> 682.402, 682.406, 682.409, 682.411, 682.414, 682.602, 682.603, and
> 682.604 contain information collection requirements currently approved
> by OMB. Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)),
> the Department of Education is submitting a copy of these sections to
> the Office of Management (OMB) for its review. We are making the
> following changes to those sections:
>
> **Sections 682.211 --** **Forbearance.**
>
> The final changes to §682.211 provide for a period of forbearance not
> to exceed 60 days necessary for the lender to collect and process
> documentation supporting the borrower's eligibility for loan
> forgiveness under the income-based repayment program. The lender must
> notify the borrower that the requirement to make payments on the loans
> for which forgiveness was requested has been suspended pending
> approval of the forgiveness by the guaranty agency.
>
> The entities affected by the final changes are lenders and guaranty
> agencies. The addition of the new forbearance under the income-based
> repayment program we estimate will increase the burden hours.

**2. Purpose and Use of Information Collected**

**Federal Family Education Loan Program:**

> The Federal Family Education Loan Program loans are maintained by
> three major groups: guaranty agencies, lenders, and schools.
> Recordkeeping requirements are imposed to assure accountability of
> program participants for proper program administration and to justify
> the payment of funds by the federal government. Not collecting the
> information described would be likely to result in a loss of billions
> of dollars of Federal money due to waste, fraud, and abuse.

**3. Consideration of Improved Information Technology**

**FFELP:**

> Guaranty agencies conduct business with the Department electronically.
> Schools and lenders utilize electronically the National Student Loan
> Data System to verify accuracy of records.

**4. Efforts to Identify Duplication**

> A thorough review of procedures indicates that current requirements
> are minimal and avoid duplication. This review was done in conjunction
> with affected parties who have a vested interest in eliminating
> duplication.

**5. Burden Minimization as Applied to Small Business**

No small businesses are impacted by this collection.

**6. Consequences of Less Frequent Data Collection**

> Recordkeeping requirements are imposed to assure accountability of
> program participants for proper program administration and less
> frequent collection could impair accountability of program
> participants.

7.  **Special Circumstances Governing Data Collection**

The collection of this information will be conducted in a manner that is
consistent with the guidelines in 5 CFR 1320.5(d)(2).

**8. Consultation Outside the Agency**

> Under the Administrative Procedure Act (APA) (5 U.S.C.553), the
> Department is generally required to publish a noticed of proposed
> rulemaking and provide the public with an opportunity to comment on
> proposed regulations prior to establishing a final rule. In addition,
> all Department regulations for programs authorized under the title IV,
> HEA programs are subject to the negotiated rulemaking requirements of
> section 492 of the HEA. However, both the APA and the HEA provide for
> exemptions from these rulemaking requirements. The APA provides that
> an agency is not required to conduct notice and comment rulemaking
> when the agency for good cause finds that notice and public procedures
> thereon are impracticable, unnecessary or contrary to the public
> interest. Similarly, section 492 of the HEA provides that the
> secretary is not required to conduct negotiated rulemaking for title
> IV, HEA program if the Secretary determines that applying that
> requirement is impracticable, unnecessary or contrary to the public
> interest within the meaning of the APA.

**9.** **Payments or Gifts to Respondents**

No payments or gifts will be provided to the respondents.

**10. Assurance of Confidentiality**

> A Privacy Act Notice is included on the Application Form and
> Promissory Note. In this notice, the borrower is informed of the
> statutory authority for collecting the information requested. Although
> disclosure of the information is voluntary, the borrower is informed
> that in order to be considered for FFEL Program funds, the information
> must be provided. The information provided is used to verify the
> borrower\'s identity, to determine the borrower\'s eligibility to
> receive an FFEL Program loan and benefits, to permit the servicing of
> the borrower\'s loan(s), and to locate the borrower and collect on the
> loan(s) if the loan(s) become delinquent or default. A listing of the
> persons and entities to which the information may be disclosed and for
> what purposes the information may be disclosed is also included.

**11. Questions of Sensitive Nature**

The Department is not requesting any sensitive data.

**12. Annual Hour Burden for Respondents/Recordkeepers.**

> **FFELP:**
>
> **Sections 682.211 -- Forbearance.**
>
> The final changes to §682.211 provide for a period of forbearance not
> to exceed 60 days necessary for a lender to collect and process
> documentation supporting the borrower's eligibility for loan
> forgiveness under the income-based repayment program. The lender must
> notify the borrower indicating that the requirement to make payments
> on the loans for which forgiveness was requested has been suspended
> pending approval of the forgiveness by the guaranty agency.
>
> The entities affected by these final changes are lenders and guarantee
> agencies.
>
> Projected \# Borrowers Applying for IBR: 125,654
>
> Projected Amt. of Time to Collect
>
> Documentation, Make a Determination
>
> And Notify the Borrower: .25 hours
>
> Total Amount of Increased Burden: 31,414 hours DK Stopped here
>
> [Affected Entity:]{.underline}
>
> BUSINESS or OTHER FOR PROFITS:
>
> Lenders 31,100 hours
>
> NOT-FOR-PROFIT:
>
> Guaranty Agencies: 314 hours
>
> Total: 31,414 hours
>
> [Respondents, Responses and Burden Hours:]{.underline}
>
> \# of Respondents \# of Responses \# Hrs/Response #Hrs
>
> Burden
>
> 125,654 125,654 .25 = 31,414

13. **Annual Cost Burden to Respondents**

> There are no additional costs.

**14**. **Estimated Annual Cost to the Federal Government**

> There are no additional costs to the Federal government as a result of
> the final regulations.

**15. Reasons for Changes to Burden Hour Estimated**

> The implementation of the final regulations as a result of the
> Negotiated Rulemaking process created additional information
> collections burden. A summary below is provided:
>
> [Respondents, Responses and Burden Hours:]{.underline}
>
> \# of Respondents \# of Responses \# Hrs/Response #Hrs
>
> Burden

Section 682.211 -- Forbearance

> 125,654 125,654 .25 = 31,414

Current

Inventory: \# of Respondents \# of Responses #Hrs

Burden

1,112,626 2,658,302 9,890,224

Revised

Inventory: \# of Respondents \# of Responses #Hrs

Burden

**1,238,280 2,783,956 9,921,638**

**16. Collection of Information with Published Results**

The results of the collection of information will not be published.

**17. Approval to Not Display Expiration Date**

ED is not seeking this approval.

**18. Exception to the Certification Statement**

> ED is not requesting any exceptions to the \"Certification for
> Paperwork Reduction Act Submissions\" of OMB Form 83-1.