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ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) **SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION** 
**A. Justification** 1. Explain the circumstances that make the collection of information necessary . Identify any legal or administrative requirements that necessitate the collection. Attach a hard cop y of the appropriate section of each statute and regulation mandating or authorizing the collection of information , or you may provide a valid URL link or paste the applicable section 1 . Specify the review type of the collectio n (new, revision, extension, reinstatement with change, reinstatement without change) . If revised, briefl y specify the changes. If a rulemaking is involved, make note of the sections or changed sections, if applicable. The Department of Education (ED) is submitting for approval the Guaranty Agency Financial Report The Guaranty Agency Financial Report is used by a guaranty agency to request payments of reinsurance for defaulted student loans; make payments for amounts due ED, for collections on default and lender of last resort loan (default) claims on which reinsurance has been paid and for refunding amounts previously paid for reinsurance claims. The form is also used to determine required reserve levels for agencies ; and to collect debt information as required for the “Report on Accounts and Loans Receivable Due from the Public,” SF 220 - 9 (Schedule 9 Report) as required by the U.S. Department of Treasury. The legal authority for collecting this information is Title IV, Part B of the Higher Education Act of 1965; Sec. 428 as amended and 34CFR 682 Subpart D.

1 Please limit pasted text to no longer than 3 paragraphs.2

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 2. Indicate how, by

whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection. The Guaranty Agency Financial Report is completed via two submissions: one contains payment/collection information (and other transactions affecting the federal receivable and posted to the ge neral ledger), the other contains fund balances (and other transactions related to program oversight). Participating guaranty agencies are required to submit the report on a monthly basis. ED uses the information collected to carry out financial activiti es between each guaranty agency and ED. The data collected is used for ED’s accounting transactions, posting to the general ledger, preparing financial statements, create payment file for Treasury to make payments and complies with the CFO Act. In additi on, this information is used in program planning, program oversight, accounting, budgeting, and evaluation. If the information were not collected, ED would not be able to make payments to, or collect monies from Guaranty Agencies as required by law. 3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or forms of information technology , e.g. permitting electronic submission of responses, and the basis for the decision of adopting this means of collection. Also describe any consideration given to using technology

to reduce burden. The data is submitted to the Financial Management System (FMS) via on - line data entry, file transfer proces s (FTP), or email. 4. Describe efforts to identify duplication. Show specificall y wh y an y similar information already available cannot be used or modified for use for the purposes described in Item 2 above. Most of the information collected here is no t available elsewhere in the format needed to pay the agencies’ claims. Information collected will be compared to data collected in the National Student Loan Data System (NSLDS) to reduce duplication of data reported by the agencies.3

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 5. If the collec tion of information impacts small businesses or other small entities, describe any methods used to minimize burden. A small entity may be (1) a small business which is deemed to be one that is independently owned and operated and that is not dominant in it s field of operation; (2) a small organization that is any not - for - profit enterprise that is independently owned and operated and is not dominant in its field; or (3) a small government jurisdiction, which is a government of a city , county, town, township, school district, or special district with a population of less than 50,000. Collection of this information does not involve small business. 6. Describe the consequences to Federal program or policy activities if the collection is not conducted or is c onducted less frequentl y, as well as an y technical or legal obstacles to reducing burden. If the collection of this information were conducted less frequently, it would delay payments mandated by law and adversely affect the cash flow of the guaranty agen cies. Less frequent submission of collections would result in financial loss to the Federal Government.4

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 7. Explain any

special circumstances that would cause an information collection to be conducted in a manner:
 requiring respondents to report information to the agency more often than quarterl y;  requiring respondents to prepare a written response to a collection of information in fewer than 30 day s after receipt of it;
 requiring respondents to submit more than an original and two copies of any document;
 requiring respondents to retain records, other than health, medical, government contract, grant - in - aid, or tax records for more than three years;  in connection with a statistical survey , that is not designed to produce valid and reliable resul ts than can be generalized to the universe of study ;  requiring the use of a statistical data classification that has not been reviewed and approved b y OMB;
 that includes a pledge of confidentiality that is not supported by

authority established in statut e or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or that unnecessaril y i mpedes sharing of data with other agencies for compatible confidential use; or
 requiring respondents to submit prop rietary trade secrets, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information ’ s confidentiality to the extent permitted by law. There are no special circumstances. The collection of this information will be conducted in accordance with the guidelines in 5 CFR 1320.6.5

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 8. As applicable, state that the Department has published the 60 and 30 Federal Register notices as required b y 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken b y the agency in response to these comments. Specifically address comments received on cost and hour burden. Describe effort s to consult with persons outside the agency to obtain their views on the availability

of data, frequency

of collection, the clarity

of instruction and record keeping, disclosure, or reporting format (if any), and on the data elements to be recorded, discl osed, or reported. Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years – even if the collection of information activity

is the same as in prior perio ds. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained. ED has been in partnership with the guaranty agency community in development of the Guaranty Agency Financial Report form an d instructions. No consultation was made with the workgroup regarding the Form 2000 because there were no changes made to the form. The appropriate 60 - day and 30 - day federal register notices will be published. 9. Explain any

decision to provide any pay ment or gift to respondents, other than remuneration of contractors or grantees with meaningful justification . There are no plans to provide any payment or gift to respondents.6

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 10. Describe an y assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy . If personally

identifiable information (PII) is being collected, a Privacy Act statement should be included on the instrument. Please provide a citation for the Sy stems of Record Noti ce and the date a Privacy Impact Assessment was completed as indicated on the I C Data Form . A confidentiality statement with a legal citation that authorizes the pledge of confidentiality should be provided. 2 If the collection is subject to the Privacy Act, the Privacy

Act statement is deemed sufficient with respect to confidentiality . I f there is no expectation of confidentiality , simply state that the Department make s no pledge about the confidentiall y of th e data. No assurance of confidentiality hae been provided to respondents. The information collected here is available to the public under the Privacy Act of 1974 and the Freedom of Information Act 11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. The justification should include the reasons wh y the agency considers the questions necessary , the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent. There are not questions of a sensitive or private nature in this information collection activity

2 Requests for this information are in accordance with the following ED and OMB policies: Privacy Act of 1974, OMB Circular A - 108

– Privacy Act Implementation

– Guidelines and Responsibilities, OMB Circular A - 130 Appendix I

– Federal Agency Responsibilities for Maintaining Re cords About Individuals, OMB M - 03 - 22

– OMB Guidance for Implementing the Privacy Provisions of the E - Government Act of 2002, OMB M - 06 - 15

– Safeguarding Personally Identifiable Information, OM:6 - 104

– Privacy Act of 1974 (Collection, Use and Protection of P ersonally Identifiable Information)7

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 12. Provide estimates of the hour burden of the collection of information. The statement should:
 Indicate the number of respondents by affected public ty

pe (federal government, individuals or households, private sector

– businesses or other for - profit, private sector
– not - for - profit institutions, farms, state, local or tribal governments) , frequency of response, annual hour burden, and an explanation of how the burden was estimated, including identification of burden type: recordkeeping, reporting or th ird party disclosure. All narrative should be included in item 12. Unless directed to do so, agencies should not conduct special survey s to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widel y because of differences in activity , size, or complexity , show the range of estimated hour burden, and explain the reasons for the variance. Generall y, estimates shoul d not include burden hours for customary and usual business practices.
 If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in the ROCI S IC Burden Analy sis Table . (The table should at minimum include Respondent types, IC activity , Respondent and Responses, Hours/Response, and Total Hours)

 Provide estimates of annualized cost to respondents of the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead, this cost should be included in Item 14. The total annual burden has been determined to b e approximately 40,920 hours. This was determined by multiplying the estimated number of annual respondents (31) times the number of responses per respondent (24) times the amount of time needed to collect, complete and review the information for accuracy (55 hours).

Number of Respondents 31 Frequency of Response x 24 Total Annual Responses 744 Hours per response x 55 Total Burden Hours 40,920 The estimated cost to the public will be approximately $150,040. This was determined by multiplying the number of respondents (31) times the amount of time it takes to collect, complete, review, submit, and maintain the forms (55 hours), times an average hourly wage of $88 per hour.8

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 13. Provide an estimate of the total annual cost burden to respondents or record keepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14.)

 The cost estimate should be split into two components: (a) a total capital and start - up cost component (annualized over its expected useful life); and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information. In clude descriptions of methods used to estimate major cost factors including s ys tem and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start - up c osts include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and acquiring and maintaining record storage facilities.
 If cost estimates are expect ed to vary widel y, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, ag encies may consult with a sample of respondents (fewer than 10), utilize the 60 - day

pre - OMB submission public comment process and use existing economic or regulatory

impact anal ys is associated with the rulemaking containing the information collection, as a ppropriate.

 Generally , estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) fo r reasons other than to provide information or keep records for the government or (4) as part of customary and usual business or private practices. Also, these estimates should not include the hourly costs (i.e., the monetization of the hours) captured abo ve in Item 12 Total Annualized Capital/Startup Cost : Total Annual Costs (O&M) :

____________________ Total Annualized Costs Requested : There is no additional annual cost burden to respondents or record keepers resulting from the collection of inform ation.9

ICR No. and OMB Number (1406.20) 1845 - 0026 v.11 Revised: 0 5 / 01 /2013 RIN Number: XXXX - XXXX (if applicable) 14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table. This form will be processed by an ED contractor. It i s estimated that the annual cost to the Federal Government of operating the computer system will be $ 844, 152.25 15. Explain the reasons for any program changes or adjustments. Generally, adjustments in burden result from re - estimating burden and/or fro m economic phenomenon outside of an agency ’ s control (e.g., correcting a burden estimate or an organic increase in the size of the reporting universe). Program changes result from a deliberate action that materiall y changes a collection of information and generally are result of new statute or an agency action (e.g., changing a form, revising regulations, redefining the respondent universe, etc.). Burden changes should be disaggregated by type of change (i.e., adjustment, program change due to new statute, and/or program change due to agency discretion) , ty

pe of collection (new, revision, extension, reinstatement with change, reinstatement without change) and include totals for changes in burden hours , responses and cost s (if applicable) . ED is citing total burden hours of 40,920. This is a decrease of 2,640 hours. The decrease is due to a reduction in the number of respondents. 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any c omplex analy

tical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions. ED does not plan to publi sh for statistical use the results of the information being collected; however, management reports will be prepared. 17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that displ ay would be inappropriate. The expiration date for OMB approval of the information collection will be displayed. 18. Explain each exception to the certification statement identified in the Certification of Paperwork Reduction Act. The collection of inf ormation complies with 5 CFR 1320.9.