1

ICRAS and OMB Number : ( 1401 ) 1845

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- AD 12

**SUPPORTING STATEMENT**

**FOR PAPERWORK REDUCTION ACT SUBMISSION FEDERAL**  **FAMILY EDUCATION LOAN (FFEL) PROGRAM REGULATIONS 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 t ype of the collection (new, revision, extension, reinstatement with change, reinstatement without change) . If revised, brie fl y specify the changes. If a rulemaking is involved, make note of the sections or changed sections, if applicable. The Department is requesting a revision of the current information collection. The proposed Federal Family Education Loan (FFEL) Program regulations revise the current regulations for program administration as described below. First , the proposed regulations indicate the regulatory changes made in the provisions related to forbearance, reasonable and affordable loan rehabilitation, and administrative wage garnishment along with the associated changes in burden. Additionally , we describe a series of proposed regulatory

changes that removes u nneeded FFEL regulations that are no longer required as a result of the Student Aid and Fiscal Responsibility (SAFRA) Act that was included in the Health Care and Reconciliation Act of 2010 (HCERA), which as of July 1, 2010, terminated the authorit y for le nders to make new loans under the FFEL program. Both of these circumstances require a change in the current burden hours. 2. I ndicate 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 current information collection allows for the borrowers and loan holders to ensure the proper administration of the FFEL Program, including borrower benefits such as deferm ents and pay

ment options , as well as , loan holder requirements for servicing and collections. The proposed regulations provide for oral acknowledgements and agreements to repay

a defaulted FFEL loan through forbearance. Other proposed provisions include the burden associated with loan holder processing of reasonable and affordable loan rehabilitation agreements, as well as , proposed revisions to administrative wage garnishment provisions.

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

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- AD 12 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 processes involved to implement the proposed regulations related to forbearance, reasonable and affordable loan rehabilitation agreements, and the proposed revi sions to administrative wage garnishment provisions are primarily paper and pencil processes. Most of the remaining proposed changes result from the elimination of unnecessary FFEL regulations and are not electronicall y or technologicall y driven

. 4. Describe efforts to identify duplication. Show specificall y wh y an y similar information alread y available cannot be used or modified for use for the purposes described in I tem 2 above. The current requirements are minimal and avoid duplication. There i s no similar information available that can be used or modified for this purpose at this time. 5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden. A small entit y may be (1) a small business which is deemed to be one that is independently owned and operated and that is not dominant in its field of operation; (2) a small organization that is any not
- for

- profit enterprise that is independently owned and operated and is not domina nt in its field; or (3) a small government jurisdiction, which is a government of a city , count y, town, township, school district, or special district with a population of less than 50,000. No small businesses are affected b y this information collection. 6. Describe the consequences to Federal program or policy activities if the collection is not conducted or is conducted less frequentl y, as well as an y technical or legal obstacles to reducing burden. Most of the proposed changes to the FFEL regulations would specificall y be to reduce burden through the elimination of unnecessary regulations. 7. Explain any

special circumstances that would cause an information collection to be conducted in a manner:

 requiring respondents to report information to the ag ency 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 y ears;3

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 in connection with a statistical survey , that is not designed to produce valid and reliable results than can be generali zed 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 statute 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 proprietary 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. The collection of this information will continue to be conducted in a manner th at is consistent with the guidelines in 5 CFR 1320.6. 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 OM B. 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 efforts 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 an y), and on the data elements to be recorded, disclosed, 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 y ears
– even if the collection of information activity

is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained. Th e proposed regulations were developed through the Negotiated Rulemaking process where the public provided its input and in consultation with schools, and a variet y of professional associations and other interested parties

. The comment period for the burden associated with these proposed regulations will run concurrently with the comment period for the proposed regulations. Although OMB has up to 60 da ys to approve the IC R, it is recommended that the public comment on the ICR within the 30 day s of the regulations publication. 9. Explain any

decision to provide any

pay ment or gift to respondents, other than remuneration of contractors or grantees with m eaningful justification

. No pay ments or gifts will be provided to the respondents. 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) is4

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- AD 12 being collected, a Privacy Act statement should be included on t he instrument. Please provide a citation for the Sy stems of Record Notice and the date a Privacy I mpact Assessment was completed as indicated on the I C Data Form . A confidentiality statement with a legal citation that authorizes the pledge of confidentiali ty should be provided. 2 If the collection is subject to the Privacy Act, the Privacy

Act statement is deemed sufficient with respect to confidentiality

. If there is no expectation of confidentiality , simply state that the Department make s no pledge about the confidentiall y of the data. The collection of privacy protected information (PII) is required under these proposed regulations, such as in the use of the Financial Disclosure for Reasonable and Affordable Rehabilitation Pay

ments form, however no assurance of confidentiality is provided to respondents. Instead, a Privacy Act statement is included on the form alerting the user to the authority

under which the PII is collected as well as information regarding disclosures to third parties. 11. Prov ide additional justification for an y 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 t he agency considers t he 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 an y steps to be taken to obtain their consent. The Department is not requesting an y s ensitive data. 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 t ype: recordkeeping, reporting or t hird 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 potentia l 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 shou ld 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

2 Requests for this information are in accordance with the follow ing 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 Records 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 Personally Identifiable Information)5

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Analy sis Table. (Th e 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, identify ing and using appro priate wage rate categories. The cost of contracting out or pay ing outside parties for information collection activities should not be included here. Instead, this cost should be included in I tem 14. Establishing average burden hours Considerable burden reduc tion was achieved by eliminating the paperwork burden associated with the ending of the authorization to make new FFEL program loans

. Unlike other newl y proposed regulations where the resultant proposed regulation would either increase or decrease burden as a result of the change in regulation, this expansive effort to eliminate the unneeded regulations includes more wholesale changes being proposed to 34 CFR 682. As a result, the entire history of burden associated with OMB 1845

- 0020 was examined. While the burden assessments for OMB 1845

- 0020 stretch back over 13 ye ars, the necessary level of detail doe s no t exist to disaggregate the currentl y approved amount of burden in this collection into its corresponding subsections of 34 CFR 682. Therefore, a new methodology to calculate burden is required. We are able to establish that there are 38 subsections of 34 CFR 682 that have burden under OMB 1845

- 0020. We have div i ded the total of the currently approved burden hours of 12,352,197 hou rs by the 38 affected subsections which on average yi elds 325,058 hours per affected subsection. Each of the proposed subsections listed below will use this number of burden hours as a starting point. The proposed changes as provided below explain the burden impact. The specific number of respondents from the affected entities is unavailable; therefore we are projecting the number of respondents and responses, as well as projecting the proportion of the burden hours for each of the affected entities ba sed upon the number of borrowers per affected entity

. We estimate that of the currentl y approved 25,347,555 respondents spread across 38 subsections of 34 CFR 682 that have burden in OMB 1845

- 0020, there is an average of 667,041 respondents per subsecti on (25,347,555 divided by 38). For profit lenders had 86.98 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 580,192 respondents (667,041 multiplied by .8698) associated with for profit FFEL l enders. Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 86,71 6 respondents (667,041 multiplied by .1300) associated with not

- for

profit FFEL lenders. Pu blic lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 133 respondents (667,041 multiplied by

.0002) associated with public FFEL lenders.6

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- AD 12 We estimated the number of responses using the same basis for our estimation of respondents. We estimate that of the currentl y approved 25,347,555 responses spread across 38 subsections of 34 CFR 682 that have burden in OMB 1845

- 0020, there is an average of 667,401 responses per subsection ( 25,347,555 divided by 38). For profit lenders had 86.98 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 580,192 responses (667,401 multiplied by .8698). Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 86,716 responses (667,401 multiplied by

.1300). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s da ta, therefore we estimate that there are 133 responses (667,401 multiplied by .0002). For profit lenders had 86.98 percent of the FFEL borrowers for the most recently completed year’s data, therefore we estimate that there are 282,735 hours of burden ( 325 ,058 multiplied by

.8698) associated with for profit lenders . Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 42,258 hours of burden ( 325,058 multiplied by .1300) associated with not

- for

- profit lenders . Public lenders had .02 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 65 hours of burden ( 325,058 multiplied by .0002) associated with publi c lenders

. Section 682.102

- Repay ing a loan

. The proposed regulations would amend the section heading, remove §§682.102(a)

- (d), which describes the application process for Stafford, PL US, and Consolidation loans, and re - designate the paragraphs in current §682.102(e), which describes the loan repay me nt process, as §682.102(a)

- (g). These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.102

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .487313 4 325,058 Section 682.200

- Definitions

- Le nder

. The proposed regulations would remove the provisions of current §682.601(a)( 3), (a)(5), and (a)(7), and place these provisions into paragraph (8) of the definition of “Lender” in §682.200(b) to §682.200. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020.7

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Sec tion 682.200

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 .4873134 325,058 Section 682.205

- Disclosure Requirements for Lenders

. The proposed regulations would remove §682.205(a)

– the in itial disclosure statement, (b)

– statement of borrower rights and responsibilities, (g)

– plain language disclosure, and (i)

– separate disclosure for Consolidation loans, from the FFEL regulations and renumber the remaining provisions. The remaining prov isions include providing repay ment information, providing required disclosures during the repay ment period, and providing required disclosures for borrowers having difficulty making payments. The proposed changes would decrease the required burden b y 162, 529 hours, therefore the current burden hours would decrease from 325,058 hours to 162,529 hours under OMB Control Number 1845

- 0020. The specific number of respondents from the a ffected entities is unavailable; therefore we are projecting the number of respondents and responses based upon the number of borrowers per affected entity . We estimate that of the currently approved 25,347,555 respondents spread across 38 subsections of 34 CFR 682 that have burden in OMB 1845

- 0020, there is an average of 667,04 1 respondents per subsection (25,347,555 divided by 38). However, with the removal of several sections from the regulations, we estimate that burden, the number of respondents, as well as the number of responses will decrease by 50 percent making the numb er of respondents 333,521 (667,041 multiplied by .50) and the number of responses 333 , 52 1 (667 , 04 1 multiplied by .50). For profit lenders had 86.98 percent of the FFEL borrowers for the most recently completed year’s data, therefore we estimate that there are 290,097 respon dents (333,521 multiplied by

.8698). Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 43,358 respon dents (333,521 multiplied by .1 3 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 66 respon dents (333,521 multiplied by .0002). As noted above the average number of responses is 333 , 52 1

. For p rofit lenders had 86.98 percent of the FFEL borrowers for the most recently completed ye ar’s data, therefore we estimate that there are 290 , 0 97 respons es ( 333 , 52 1 multiplied by .8698). Private not

- for

profit lenders had 13 percent of the FFEL borrowers fo r the most recentl y completed ye ar’s data, therefore we estimate that there are 43 , 3 58 respons es ( 333 , 52 1 multiplied by .13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that th ere are 6 6 respons es ( 333 , 52 1 multiplied by

.0002).8

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- AD 12
Section 682.205

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Less 333,520 333,520 162,529

---------- ---------- ----------- Equals 333,521 333,521 .48731 26 162,529 Section 682.206

- Due Diligence in making a loan

. The proposed regulations would remove §682.206 from the FFEL regulations. The SAFRA Act eliminated the authority to make new FFEL program loans, including FFEL consolidation loans. As a result, the requirements governing the making of new FFEL program loans are no longer needed and the previous burden associated with the making of a loan b y a lender would be removed. The proposed change would remove all of the prior assessment of 325,058 hours of burden associated under OMB Control Number 1845

- 0020. The number of respondents and number of responses are also reduced to zero. S ection 682.206

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Less 667,041 667,041 325,058

------------ ---------- ------------ Equals 0 0 0 Section 682.208

- Due diligence in servicing a loan

. The proposed regulations would replace the term “national credit bureau(s)” with “nationwide consumer reporting agency (ies)” to more accurately reflect the reporting requirements. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.208

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 .4873134 325,0589

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- AD 12 Section 682.209

- Repayment of a loan

. The proposed regulations would amend §682.209(a)(3)(i) b y adding a new paragraph which specifies that borrowers with fixed interest rates on their Stafford loans enter repay ment on those loans the day after six months following the date the borrower was no longer enrolled on at least a half

- time basis. The proposed regulations would remove current §§682.209(e)

- (g) and (j) from the reg ulations and re

- designate the remaining paragraphs as paragraphs (e)

- (g). Re

- designated §682.209(e) (current paragraph (h)) would be amended to specify that a FFEL Consolidation borrower repay ing under the income

- based repay

ment plan may

make a scheduled monthly pay ment of less than the interest that accrues on the loan. The proposed changes would decre ase the burden by 65,012 hours, therefore the current burden assessment would decrease from 325,058 to 260,046 hours (or 80 percent of the average burden hours) under OMB Control Number 1845

- 0020. The specific number of respondents from the a ffected entities is unavailable; therefore we are projecting the number of respondents and responses based upon the number of borr owers per affected entity . We estimate that of the currently approved 25,347,555 respondents spread across 38 subsections of 34 CFR 682 that have burden in OMB 1845

- 0020, there is an average of 667,041 respondents per subsection (25,347,555 divided by 38) . However, with the removal of several sections from the regulations, we estimate that burden, the number of respondents, as well as the number of responses will decrease by 2 0 percent making the number of respondents and responses 533,633 (667,041 multip lied by

.80) . For profit FFE L lenders had 86.98 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 464,154 respondents (533,633 multiplied by

.8698). Private not

- for

- profit lenders had 13 pe rcent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 69,372 respondents (533,633 multiplied by .13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s dat a, therefore we estimate that there are 107 respondents (533,633 multiplied by .0002). As noted above the average number of responses is 533,633. For profit lenders had 86.98 percent of the FFEL borrowers for the most recently completed ye ar’s data, the refore we estimate that there are 464,154 responses (533,633 multiplied by .8698). Private not

- for

profit lenders had 13 percent of the FFEL borrowers for the most recentl y completed ye ar’s data, therefore we estimate that there are 43,358 responses (533, 633 multiplied by .1300). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 66 responses (333,521 multiplied by

.0002).10

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- AD 12 Section 682.209

- Changed Burden : # of Res pondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 133,408 133,408 65,012

---------- ---------- ---------- Equals 533,633 533,633 .4873124 260,046 Section 682.210

- Deferment

. The proposed regulations would amend §682.210(a)(4) of the general provisions section of the deferment regulations to provide that a borrower’s representative may request a military service deferment on behalf of the borrower. In §682.210(b), the introductory language in paragraphs (b)(1) through (6) of §682.210 would be revised to identify the cohort of borrowers to which each paragraph applies. Throughout §682.210(b) cross

references woul d be added to the eligibility criteria that are applicable to deferments available to these borrowers. The proposed regulations also amend §682.210(s)(2) b y removing the exception clause at the end of the provision, and §682.210(u)(5) by replacing the wor ds “military active” with the word “post

- active”. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.210

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 .4873134 325,058 Sections 682.211

– Forbearance The proposed regulations amend the current FFELP regulations to authorize a lender to grant forbearance to a borrower or endorser who i s in default on a loan, but prior to default claim pay

ment, based on the borrower’s or endorser’s oral request. The proposed regulations provide that a forbearance agreement in this situation must include a new agreement to repay

the debt signed by

the bo rrower or endorser (as required under the current regulations), or a written or oral affirmation of the borrower’s or endorser’s obligation to repay

the debt. The proposed regulations define “affirmation” for this purpose to be an acknowledgment of the lo an b y t he borrower or endorser in a legall y binding manner that can take the form of: 1) a new signed repay ment agreement or schedule, or another form of signed agreement to repay the debt (as under current regulations), or 2) an oral acknowledgment and ag reement to repay the debt that is documented b y the lender in the borrower’s or endorser’s file and confirmed by the lender in a notice to the borrower; or 3) a pay ment made on the loan by the borrower or endorser. The proposed regulations also specify th at if a forbearance in this situation is based on the borrower’s or endorser’s oral request and affirmation, the lender must orally review with the borrower the terms and conditions of the forbearance, and that the lender11

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- AD 12 must send the borrower or endorser a notice that confirms the terms of the forbearance and the borrower’s or endorser’s affirmation of the obligation to repay the debt within 30 day s of that agreement. The proposed regulations require the lender to retain a record of the terms and conditi ons of the forbearance and affirmation in the borrower’s or endorser’s file. For the 2011 calendar ye ar, we estimate that 172,915 FFEL borrowers requested forbearance after defaulting on a loan. Of that number, 49,350 borrowers have commerciall y held F FEL Program Loans. Of those borrowers, we estimate that 25 percent (12,338 borrowers) would have exercised an option to orally acknowledge the debt and agreed to repay

the debt. Of the commerciall y held FFEL loans, we estimate that public holders will have 2 FFEL borrowers who seek to orally acknowledge a defaulted FFEL Program loan. On average, we estimate that it would take the lender .17 hours (10 minutes) per oral acknowledgment to orally review with the borrower the terms and conditions of the forb earance and document the conversation and place that documentation in the borrower’s or endorser’s file. For public holders, we estimate that burden would increase by such a small amount as to not increase burden (2 borrowers multiplied by .17 hours per o ral forbearance request equals less than one half of one hour). Of the commerciall y held FFEL loans, we estimate that not

- for

- profit holders will have 1,551 FFEL borrowers who seek an oral forbearance on a defaulted FFEL Program loan. On average, we estim ate that it would take the lender .17 hours (10 minutes) per oral acknowledgment to orally review with the borrower the terms and conditions of the forbearance and document the conversation and place that documentation in the borrower’s or endorser’s file. For not
- for

- profit holders, we estimate that burden would increase b y 264 hours (1,551 borrowers multiplied by .17 hours per oral forbearance request). Of the commerciall y held FFEL loans, we estimate that proprietary holders will have 10,785 FFEL bor

rowers who seek an oral forbearance on a defaulted FFEL Program loan. On average, we estimate that it would take the lender .17 hours (10 minutes) per oral acknowledgment to orally review with the borrower the terms and conditions of the forbearance and do cument the conversation and place that documentation in the borrower’s or endorser’s file. For not

- for

- profit holders, we estimate that burden would increase b y 1,833 hours (10,785 borrowers multiplied by .17 hours per oral forbearance request). We estimate there would be an equal amount of burden on the borrower engaged in the oral acknowledgement and agreement to repay the debt request with the lender. Th is increase s burden b y 7,349 hours for all FFEL borrowers (12,338 commercially held and 30, 891 ED

- held = 43,229 borrowers multiplied by .17 hours per oral forbearance request).12

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- AD 12 W e estimate that these proposed FFEL forbearance regulations would increase burden b y 9,446 hours under OMB Control Number 1845

- 0020. Collectively , t he proposed changes would increase the burden assessment of 325,058 by 9,446 hours for a total of 3 3 4, 504 hours under OMB Control Number 1845

- 0020.
Section 682.211

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Plus 55,567 55,567 9,446

----------- ---------- ----------- Equals 722 , 60 8 722,60 8 .462912 8 334,504 Section 682.212

- Prohibited transactions

. There is no change to the current language in this section of the regulations, however the current burden referenced in OMB Control Number 1845

- 0020 is inc orrect. We propose removal of the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020, therefore burden would decrease by 325,058 hours for a total of 0 hours

. Section 682.212

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.214

- Compliance with equal credit opportun ity requirements

. The proposed regulations would remove §682.214 from the FFEL regulations. The SAFRA Act ended the making of new FFEL loans and therefore these requirements can be eliminated from the FFEL regulations. The proposed change would remove the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020, therefore burden would decrease by 325,058 hours for a total of 0 hours

. The number of respondents and the number of responses are also reduced to zero.13

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- AD 12 Section 682.214

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.216

- Teacher loan forgiveness program

. The proposed regulations provide for minor language changes. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.216

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 .4873134 325,058 Section 682.301

- Eligibility of borrowers for interest benefits on Stafford and Consolidation L oans . The proposed regulations would remove §682.301(c) from the regulations. The SAFRA Act ended the making of new FFEL loans and this provision related to determining borrower eligibility

for the interest subsidy

on new loans would be eliminated. The propo sed change would remove the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020, therefore burden would decrease by 325,058 hours for a total of 0 hours

. The number of respondents and the number of responses are also reduced to zero

. Section 682.301

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.305

- Procedures for pay ment of interest benefits and special allowance and collection of origination and loan fees

. Section 682.305(c)(1)(ii) specifies that, regardless of the dollar volume of loans originated or held, a school lender or an eligible lender se rving as trustee for a school or school

- affiliated organization originating FFEL loans as a lender must submit an independent compliance audit to the Department each ye ar. The proposed regulations14

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- AD 12 would remove the reference to FFEL lenders originating loa ns. The proposed regulations would also remove the language specify ing that a school and lender serving as a trustee for a school must submit an independent compliance audit to the Department each ye ar. The number of school lenders or lenders serving as a trustee on behalf of a school or a school affiliated organization whose purpose is to originate loans for whom the proposed regulations provide relief is so small as to not be substantive. As a result, these proposed changes would not alter the prio r burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.305

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .487313 4 325,058 Section 682.401

- Basic Prog ram Agreement

. The proposed regulations would remove from §682.401 language which addresses new loan originations, the process supporting loan origination, and a guaranty agency ’s efforts to secure new loan volume. These provisions can be eliminated fro m the FFEL regulations because no new FFEL loans are being made. The remaining provisions proposed for elimination relate to school eligibility to participate in a guaranty agency ’s program and the authority of an agency to limit, suspend, or terminate a school from its program. For purposes of new loans, schools now participate onl y in the Direct Loan Program. An y future actions to limit, suspend, or terminate a school’s participation in the student loan programs would be undertaken b y the Department un der 34 CFR part 668, subpart G. Therefore, §682.401(b)(6) can also be eliminated from the FFEL regulations. The proposed changes would decrease the burden by 32,506 hours, therefore the current burden hours would decrease from 325,058 hours by 32,506 ho urs to 292,552 hours under OMB Control Number 1845

- 0020. The specific number of respondents from the affected entities is unavailable; therefore we are projecting the number of respondents and responses based upon the number of borrowers per affected entity . We estimate that of the currently approved 25,347,555 respondents spread across 38 subsections of 34 CFR 682 that have burden in OMB 1845

- 0020, there is an average of 667,041 respondents per subsection (25,347,555 divided by 38). However, with the removal of several sections from the regulations, we estimat e that burden, the number of respondents, as well as the number of responses will decrease by 10 percent making the number of respondents 600,337 (667,041 multiplied by .90) and the number of responses 60 0 , 337 (66 7 ,04 1 multiplied by .90). For profit FFE L lenders had 86.98 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 522,173 respondents ( 600,337 multiplied by

.8698). Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there15

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- AD 12
are 78,044 respondents ( 600,337 multiplied by .13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we es timate that there are 1 2 0 respondents ( 600,337 multiplied by .0002). As noted above the average number of responses is 60 0 ,3 37 . For profit FFEL lenders had 86.98 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we es timate that there are 52 2 , 173 responses ( 60 0 ,3 37 multiplied by .8698). Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 7 8 ,0 4 4 responses ( 60 0 ,3 37 multipli ed by

.13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 1 2 0 responses ( 60 0 ,3 37 multiplied by

.0002). Section 682.401

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 66,704 66,704 32,506

---------- ----------- ------------ Equals 600,337 600,337 .4873130 292,552 Section 682.402

- Death, disability , closed school, false certification, unpaid refunds, and bankruptc y pa ym ents
. We have determined that the total increase in burden is 54 hours and are non

- substantive and therefore will submit a simple change form (Form 83C) under OMB 1845

- 0015. There were no further changes to this section that impacted the burden under OMB 1845

- 0020. As a result, the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020 would not be altered. Section 682.402

- Burde n : # of Respondents # of Responses Hours/Response Burden Hours 667,041 6 67,041 .4873134 325,058 Section 682.404

- Federal reinsurance agreement

. The proposed regulations would make conforming language changes required due to the elimination of previous cross references or obsolete requirements. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020.16

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- AD 12
Section 682.404

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .487313 4 325,058 Section 682.405

- Lo an rehabilitation agreement

. The proposed regulations would add new §§685.211(f)(1)(i) and 682.405(b)(1)(iii) to provide that the Secretary (in the Direct Loan Program) and the guarant y agency (in the FFEL Program) would base the determination of reasonable and affordable rehabilitation pay ment am ounts on information provided b y the borrower on a form approved by the Secretary , and, if requested, supporting documentation provided by the borrower. Proposed §§685.211(f)(1)(i)(A) and 682.405(b)(1)(iii)(A) would provide that the Secretary and the gu aranty

agency will consider the borrower's and, if applicable, the borrower’s spouse's current disposable income in determining a reasonable and affordable rehabilitation pay ment. Disposable income includes public assistance pay ments and other income rece ived b y the borrower and the spouse, such as welfare benefits, Social Securit y benefits, Supplemental Securit y Income benefits, and workers’ compensation benefits. Under proposed §§685.211(f)(1)(i)(A) and 682.405(b)(1)(iii)(A), spousal income would not be considered if the spouse does not contribute to the borrower’s household income. Proposed §§685.211(f)(1)(i)(B) and 682.405(b)(1)(iii)(B) would provide that, in determining the reasonable and affordable pay ment amount, the Secretary and the guarant y agen cy

will consider the borrower’s family size, as defined in §§685.221(a)(3) and 682.215(a)(3). Under proposed §§685.211(f)(1)(iii) and 682.405(b)(1)(v), the Secretary or the guarant y agency would provide the borrower with a written rehabilitation agreement within 15 business day s of the determination of the borrower’s reasonable and affordable pay ment amount. The written rehabilitation agreement would include the rehabilitation pay ment amount, a prominent statement that the borrower may object orall y or in writing to the pay ment amount, and the method and timeframe for raising an objection to the pay ment amount. The written rehabilitation agreement would provide an explanation of an y other terms and conditions applicable to the required series of pay ments. The Secretary

or the guarant y agency may not impose any other conditions unrelated to the amount or timing of the rehabilitation payments in the rehabilitation agreement. The written rehabilitation agreement would inform the borrower of the effects of h aving a loan rehabilitated. For FFEL Program loans, the written repay ment agreement would inform the borrower of the amount of an y unpaid collection costs to be added to the unpaid principal of the loan when the loan is sold to an eligible FFEL lender

. P roposed §§685.211(f)(3) and 682.405(b)(1)(vi) would provide that the borrower’s rehabilitation pay

ment amount would be recalculated if the borrower objects to the17

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- AD 12 pay ment amount contained in the written repay ment agreement that the Secretary or the guarant y agency would send to the borrower under proposed §§685.211(f)(4) and 682.405(b)(1)(vi). Under §§685.211(f)(5) and 682.405(b)(1)(vii) a borrower who objects to the monthly repay ment amount contained in the written repayment agreement would provide the Secretary or guarant y agency the documentation needed to recalculate a monthly pay ment amount under the IBR formula. The Secretary or the guarant y agency would recalculate the rehabilitation pay ment amount using the formula for calculating a monthl y pay me nt amount under the IBR plan in §685.221(b)(1) and (b)(2) of the Direct Loan regulations or §682.215(b)(1) of the FFEL regulations. I f the recalculated amount using the IBR plan formula is less than $5, the borrower’s recalculated monthl y rehabilitation p ay ment would be $5. If the borrower does not provide the required documentation to the Secretary

or the guaranty

agency , the Secretary

or the guaranty

agency would not proceed with the rehabilitation process. Under proposed §685.211(f)(7), a Direct Loan borrower may request that the Secretary adjust the borrower’s monthly rehabilitation pay

ment if there is a change in the borrower’s financial circumstances. The borrower would be required to provide the documentation specified in proposed §685.211(f)(1)(i ) to support the request. This is comparable to the requirement in §682.405(b)(1) of the current FFEL regulations. We estimate that of the 192,029 FFEL loans held by lenders, 66,283 loans are held by state guarant y agencies and 125,746 loans are held by not
- for

- profit guaranty agencies, with the remaining 107,130 loans (299,159 minus 192,029) held b y the Department. Under the proposed regulations, 66,283 FFEL borrowers whose loans are held by state guarant y agencies will request rehabilitation of their defaulted loans and complete the loan rehabilitation form. We estimate that for each loan rehabilitation form submitted it would take the guarant y agency on average 0.5 hours (30 minutes) to review and process the loan rehabilitation form. Under these p roposed regulations, we estimate that burden would increase b y 33,142 hours (66,283 borrowers requesting loan rehabilitation multiplied by

0.5 hours per loan rehabilitation request) under OMB Control Number 1845

- 0020. Under the proposed regulations, we e stimate that of the 192,029 FFEL loans held by non Federal entities, 125,746 FFEL borrowers whose loans are held b y not
- for

- profit guarant y agencies will request rehabilitation and complete the loan rehabilitation form. We estimate that for each loan reha bilitation form submitted it would take the guarant y agency on average 0.5 hours (30 minutes) to review and process the loan rehabilitation form. Under these proposed regulations, we estimate that burden will increase b y 62,873 hours (125,746 borrowers re questing loan rehabilitation multiplied by 0.5 hours per loan rehabilitation request) under OMB Control Number 1845

- 0020. Proposed §§682.405(b)(1)(vi) and 685.211(f)(3) would require a guarant y agency and the Secretary to recalculate the borrower’s rehabi litation pay ment amount if the borrower18

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- AD 12 objects to the pay

ment amount contained in the written repay ment agreement that the guarant y agency or the Secretary sent to the borrower. Of the 299,159 FFEL borrowers in calendar year 2011 that requested rehabil itation of their defaulted loans, we estimate that 12 percent or 35,899 borrowers would raise an objection to the initial determination of the reasonable and affordable monthly pay ment amount by

the guarant y agency or the Secretary. We estimate that each objection will entail a phone conversation or email that would span on average 0.17 hours (10 minutes). This would increase burden to the borrowers for a total of 6,103 hours (35,899 borrowers objecting to the initial determination of the reasonable and a ffordable pay ment amount multiplied by

0.17 hours per loan rehabilitation request) under OMB Control Number 1845

- 0020. Proposed §§682.405(b)(1)(vii)and 685.211(f)(5) would require a borrower who objects to the monthly

repay ment amount contained in the wri tten repay ment agreement to provide the guarant y agency or the Secretary the documentation needed to calculate a monthly pay ment amount under the income

- based repay ment plan formula. If the borrower does not provide this information to the guarant y agency or the Secretary , no rehabilitation agreement would exist with the borrower, and the guarant y agency or the Secretary would not proceed with the rehabilitation. Of the 299,159 FFEL borrowers in calendar year 2011 that requested rehabilitation of their defaulted loans, we estimate that 12 percent or 35,899 borrowers would choose to submit documentation for a monthly pay ment amount to be calculated using the income

based repay

ment plan formula. We estimate that on average, each borrower would take 0.33 h ours (20 minutes) to collect, cop y, and submit the required documentation. We estimate that burden would increase b y 11,847 hours (35,899 borrowers required to submit documentation multiplied by 0.33 hours per loan rehabilitation request) under OMB Contro l Number 1845

- 0020. Proposed §§682.405(b)(1)(ix) and 685.211(f)(7) would require the Secretary or the guarant y agency, upon the borrower’s request, to adjust the borrower’s monthly rehabilitation pay

ment due to a change in the borrower’s financial circums tances. The borrower would be required to provide documentation supporting the request. We estimate that 10 percent of the 299,159 FFEL borrowers who requested rehabilitation of their defaulted loans (29,916 FFEL borrowers, 19,203 of whom have FFEL pro gram loans that are held by

lenders and 10,713 of whom have FFEL program loans that are held by the Department) would have a change in their financial circumstances in the initial y ear the proposed regulation is implemented. We estimate that on average ea ch borrower would take 0.33 hours (20 minutes) to collect, cop y, and submit the required documentation. We estimate that burden would increase b y 9,872 hours (29,916 borrowers with changes in financial circumstances multiplied by 0.33 hours per loan rehab ilitation request) under OMB Control Number 1845

- 0020.19

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- AD 12 Of the 19,203 borrowers with FFEL loans held b y lenders, 6,628 are held by public guarant y agencies and 12,575 are held b y not
- for

- profit guarant y agencies. Under the proposed regulations, we estimat e 6,628 FFEL borrowers whose loans are held by public guarant y agencies would have a change in their financial circumstances in the initial y ear the proposed regulation is implemented. We estimate that for each request submitted it would take on average t he guarant y agency 0.5 hours (30 minutes) to review and process the request. Under these proposed regulations, we estimate that burden would increase by 3,314 hours (6,628 borrowers requesting loan rehabilitation multiplied 0.5 hours per loan rehabilitati on request equals 3,314 hours) under OMB Control Number 1845

- 0020. Under the proposed regulations, we estimate that 12,575 FFEL borrowers whose loans are held b y not
- for

- profit guarant y agencies would request a change in their reasonable and affordable pay

ment amount due to changed financial circumstances in the initial y ear the proposed regulation is implemented. We estimate that for each request submitted it would take on average the guarant y agency 0.5 hours (30 minutes) to review and process the req uest for a change in the pay ment amount. Under these proposed regulations, we estimate that burden will increase b y 6,288 hours (12,575 borrowers requesting a change in the loan rehabilitation pay ment amount multiplied by 0.5 hours per request) under OMB Control Number 1845

- 0020. The proposed regulations would add new §§682.405(a)(3)(i) and 685.211(f)(12)(i) to the FFEL and Direct Loan Program regulations requiring a guarant y agency or the Secretary , respectivel y, to suspend collecting on a defaulted loan through Administrative Wage Garnishment (AWG) after the borrower makes five qualify ing pay ments under a loan rehabilitation agreement. The guaranty agency or the Secretary

would not be permitted to suspend AWG prior to the fifth pay ment, and, after the f

ifth pay ment, the borrower would have the option to request that the guarant y agency or the Secretary

continue collecting on the loan through AWG while the borrower makes voluntary pay ments under the rehabilitation agreement. Under proposed §682.405(a)( 3)(ii), we estimate that state guaranty agencies will have 663 FFEL borrowers from whom they will be collecting pay

ments through AWG while the borrower is also making voluntary repay ments to rehabilitate the loan. After the borrower has made five qualify i ng voluntary loan pay ments (in addition to the AWG pay ments), the holder would suspend AWG. We estimate that on average each suspension of AWG would take one hour (60 minutes). We estimate that burden would increase b y 663 hours (663 borrower requests mu ltiplied by 1 hour per AWG suspension equals 663 hours) under OMB Control Number 1845

- 0020. Under proposed §682.405(a)(3)(ii), we estimate that not

- for

- profit guaranty agencies will have 1,257 FFEL borrowers from whom they will be collecting pay

ments usin g AWG while the borrower is also making voluntary repay ments to rehabilitate the loan. After the borrower has made five qualify ing voluntary loan pay ments (in addition to the AWG pay ments) the holder would suspend AWG. We estimate that on average each su spension of AWG would take 1 hour (60 minutes). We estimate that burden would20

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- AD 12 increase b y 1,257 hours (1,257 borrower requests multiplied by 1 hour per AWG suspension equals 1,257 hours) under OMB Control Number 1845

- 0020. Any burden under proposed §685.2 11(f)(12)(i) is attributable to the Department and therefore not a part of this burden assessment of affected entities. Collectively , the proposed changes in §682.405(a) and (b) would increase burden by 135,359 hours in OMB Control Number 1845

- 0020. The substantive changes of 135,359 hours above would be in addition to the previous burden assessment of 325,058 hours under OMB Control Number 1845

- 0020 for a total burden of 460,417 hours. The specific number of respondents from the affected entities is unavailable; therefore we are projecting the number of respondents and responses based upon the number of borrowers per affected entity . We estimate that of the currently approved 25,347,555 respondents spread across 38 subsections of 34 CFR 682 that hav e burden in OMB 1845

- 0020, there is an average of 667,041 respondents per subsection (25,347,555 divided by 38). For profit FFEL lenders had 86.98 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 580,192 respondents (667,041 multiplied by

.8698). Private not

- for

- profit lenders had 13 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 86,715 respondents (667,041 multiplied by .13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 133 respondents (667,041 multiplied by .0002). We estimated the number of responses using the same basis for our e stimation of respondents. We estimate that of the currentl y approved 25 , 347 , 5 5 5 responses spread across 38 subsections of 34 CFR 682 that have burden in OMB 1845

- 0020, there is an average of 66,704 responses per subsection (25 , 347 ,5 55 divided by 38). For profit FFEL lenders had 86.98 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 580 , 19 2 responses (667 , 04 1 multiplied by .8698). Private not

- for

- profit lenders had 13 percent of the FFEL borrow ers for the most recentl y completed year’s data, therefore we estimate that there are 86 , 7 15 responses (667 , 04 1 multiplied by

.13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate t hat there are 13 3 responses (667 , 04 1 multiplied by .0002). Section 682.405

- New Burden: # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Plus 314,866 314,866 135,359

----------- ---------- ----------- Equals 9 81,907 9 81,907 .46 89008 460,41721

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- AD 12 Section 682.406

- Conditions for claim pay ments from the Federal Fund and for reinsurance coverage

. The proposed regulations would make a minor wording change due to the elimination of previous cross references and add an ending date coinciding with the implementation of the SAFRA Act, which allowed for no new FFEL loans to be made. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.406

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 .4873134 325,058 Section 682.409

- Mandatory assignment by

guaranty agencies of defaulted loans to the Secretary

. The proposed regulations would make no changes to this secti on of the regulations. These proposed regulations would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.409

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .4873134 325,058 Section 682.410

- Fiscal, administrative, and enforcement requirements

. The proposed regulations would add a new §682.410(b)(9)(i)(T) to the regulations, which specifies the functions that may be performed by

a third

- part y servicer or collection contractor employ ed by

the guarant y agency

for services needed in the administrati ve wage garnishment ( AWG ) process. The proposed regulations would make clear that the guarant y agency may not delegate to any third part y the decision to order withholding of an individual borrower’s wages, and must create and retain records to demonstr ate that each order issued has been individually authorized by

an appropriate official of the guaranty agency . The proposed regulations would also specify

the manner by

which a withholding order may be sent to employ ers and the permissible activities that may be performed by

a third

- party

servicer or collection contractor employ ed b y the guarant y agency with respect to withholding orders. Onl y an authorized official of the guaranty agency may determine that an individual withholding order is to be issued. The guarantor must record the official’s determination for each order it issues by either including the official’s signature on the order, or, b y retaining in the agency ’s records, the identity of the approving official, the22

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- AD 12 date of the approval, the amo unt or rate of the order, the name and address of the employ er to whom the order was issued and the debt for which the order was issued. In calendar ye ar 2011, we estimate there were 84,293 FFEL borrowers whose loans were held by state guaranty

agencies a nd for which the guarant y agency had initiated AWG. We estimate that on average the guarant y agency would take .25 hours (15 minutes) to meet the recordkeeping requirements specified above. Total burden hours would increase by 21,073 hours (84,293 multip lied by .25 hours) under OMB 1845

- 0020. In calendar ye ar 2011, we estimate there were 159,912 FFEL borrowers whose loans were held by

not
- for

- profit guaranty

agencies and for which the guarant y agency had initiated AWG. We estimate that on average the g uarant y agency would take .25 hours (15 minutes) to meet the recordkeeping requirements specified above. Total burden hours would increase b y 39,978 hours (159,912 multiplied by .25 hours) under OMB 1845

- 0020. The proposed changes in §682.410(b)(9)(i)(T) (2) would increase burden by 61,051 hours under OMB Control Number 1845

- 0020. The proposed regulations would also replace §682.410(b)(9)(i)(L) of the FFEL regulations with §682.410(b)(9)(i)(H) to provide that if a borrower’s written request for a hearing is received b y the guarant y agency after the 30 th day

following the date of the garnishment notice and a decision is not rendered within 60 day s following receipt of the borrower’s written request for a hearing, the guaranty agency must suspend the order b eginning on the 61st day after the hearing request was received until a hearing is provided and a decision is rendered. If a borrower does not request a hearing within the 30

- day time limit, the guarant y agency must go forward with the AWG. However, if a borrower does eventually request a hearing, a guarant y agency is still required to provide one in sufficient time to have a decision issued within 60 day s of the request. The Department added a provision specify ing that if this hearing is not provided an d a decision issued within 60 day s, then the agency

must suspend the AWG order beginning on the 61 st day until a decision is issued. In calendar ye ar 2011, we estimate there were 84,293 FFEL borrowers whose loans were held by state guaranty

agencies and f

or which the agencies had initiated AWG. We estimate that 10 percent of these borrowers (8,429) would request a hearing and that in 10 percent of those cases (843) a decision would not be rendered until after 60 day s following the receipt of the borrower’ s request. On average, we estimate that it would take one hour (60 minutes) to suspend an administrative wage garnishment order. The total increase in burden would be 843 hours (843 FFEL borrowers undergoing AWG who requested a hearing where a decision w as not rendered until after 60 day s following the receipt of the borrower’s request multiplied by one hour per suspension) under OMB 1845

- 0020.23

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- AD 12 In calendar ye ar 2011, we estimate there were 159,912 FFEL borrowers whose loans where held by

not
- for

- profit g uarant y agencies and for which the agencies had initiated AWG. We estimate that 10 percent of these borrowers (15,991) would request a hearing and that in 10 percent of those cases (1,599) a decision would not be rendered until after 60 day s following the receipt of the borrower’s request. On average, we estimate that it would take one hour (60 minutes) to suspend an administrative wage garnishment order. The total increase in burden would be 1,599 hours (1,599 FFEL borrowers undergoing AWG who requested a hearing where a decision was not rendered until after 60 day s following the receipt of the borrower’s request multiplied by one hour per suspension) under OMB 1845

- 0020. The proposed changes in §682.410(b)(9)(i)(H) would increase burden b y 2,442 hours in OMB Control Number 1845

- 0020. The proposed regulations would add new paragraph 682.410 (b)(9)(i)(J) and would provide for the manner by which the hearing is administered and certain provisions relating to bringing forth additional evidence and continuan ces. Specifically, the proposed regulations would require that the hearing be conducted as an informal proceeding, require witnesses in an oral hearing to testify under oath or affirmation, and require maintenance of a summary record of an y hearing. The p roposed regulations would also allow the borrower to request a continuance to submit additional evidence. In calendar ye ar 2011, we estimate there were 84,293 FFEL borrowers whose loans where held by

state guaranty

agencies and for which the agencies ha d initiated AWG. We estimate that 10 percent of these borrowers (8,429) would request a hearing. We estimate that on average each summary record would take 1 hour (60 minutes). The total burden increase for this recordkeeping would be 8,429 hours (8,429 hearings multiplied by one hour per hearing) under OMB 1845

- 0020. In calendar ye ar 2011, we estimate there were 159,912 FFEL borrowers whose loans where held by

not
- for

- profit guarant y agencies and for which the agencies had initiated AWG. We estimate that 10 percent of these borrowers (15,991) would request a hearing. We estimate that on average each summary record would take one hour (60 minutes). The total burden increase for this recordkeeping would be 15,991 hours (15,991 hearings multiplied by

o ne hour per hearing) under OMB 1845

- 0020. The proposed changes in §682.410(b)(9)(i)(J) would increase burden b y 24,420 hours in OMB Control Number 1845

- 0020. Proposed §682.410(b)(9)(i)(Q) would clarify that a borrower who wishes to object to AWG on the basis that he or she is not subject to garnishment because of recent reemplo ym ent after involuntary separation, bears the burden of raising and proving that claim. In calendar ye ar 2011, we estimate that there were 84,293 FFEL borrowers whose loans wher e held by

state guaranty

agencies and for which the agencies had initiated AWG. Of24

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- AD 12 that number, we estimate that 8 percent (6,743) became unemplo yed involuntarily. Furthermore, we estimate that a sub

- group of those who became unemplo yed involuntarily , 5 percent (337) gained subsequent reemploy ment. We estimate that the average amount of time for each AWG borrower in this sub

- group to provide documentation that supports their claim to not be subject to AWG due to their recent reemplo ym ent to be .5 hours. The increased burden to provide documentation that would support the borrower’s claim that he not be subject to AWG due to recent reemploy ment is 169 hours (337 borrowers whose student loans were being collected b y AWG, who became employ ed involuntarily , but subsequentl y gained reemploy ment multiplied by

.5 hours per claim) under OMB 1845

- 0020. In calendar ye ar 2011, we estimate that there were 159,912 FFEL borrowers whose loans where held by

not
- for

- profit guarant y agencies and for which the agencies ha d initiated AWG. Of that number, we estimate that 8 percent (12,793) became unemploy ed involuntarily . Furthermore, we estimate that a sub

- group of those who became unemploy ed involuntarily , 5 percent (640) gained subsequent reemploy ment. We estimate tha t the average amount of time for each AWG borrower in this sub

- group to provide documentation that supports their claim to not be subject to AWG due to their recent reemplo ym ent to be .5 hours. The total amount of increased burden to provide documentation that would support the borrower’s claim that he not be subject to AWG due to recent reemploy

ment is 320 hours (640 borrowers whose loans were being collected b y AWG, who became employed involuntarily, but subsequentl y gained reemplo ym ent multiplied by .5 hours per claim) under OMB 1845

- 0020. The proposed changes in §682.410(b)(9)(i)(Q) would increase burden b y 489 hours in OMB Control Number 1845

- 0020. Collectively , the proposed changes in §682.410 would increase burden by 88,402 hours in OMB Control Num ber 1845

- 0020. Apart from the changes made to the Administrative Garnishment section of the regulations indicated above , the proposed regulations would only make minor wording changes to conform to cross reference changes and delete obsolete references. There are no further changes to this section. These proposed changes would not alter the prior burden assessment of 325, 058 hours under OMB Control Number 1845

- 0020 and the earlier assessment that increased burden b y 88,402 hours in OMB 1845

- 0020 for a total of 413,460 hours. Section 682.410

- Changed Burden : # of Respondents # of Responses Hours/Response Burden H ours 667,041 667,401 325,058 Plus 271,044 271,044 88,402

---------- ---------- ---------- Equals 938,08 5 938,085 .440 2 79 6 413,46025

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- AD 12 Section 682.411

- Lender due diligence in collecting guarant y agency loans

. The proposed regulations would make a minor wording change. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.411

- Burden : # of Res pondents # of Responses Hours/Response Burden Hours 667,041 667,041 .4873134 325,058 Section 682.412

- Consequences of the failure of a borrower or student to establish eligibility

. The proposed regulations would make a minor wording change. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.412

- New Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .487313 4 325,058 Section 682.414

- Records, reports, and inspection requirements for guaranty agency programs . The proposed regulations would make a minor wording change. The proposed changes would decrease the previous burden assessment by 16,253 hours, therefore the current burden of 325,058 would decrease to 308,805 hours under OMB Control Number 1845

- 0020. The specific number of respondents from the affected entities i s unavailable; therefore we are projecting the number of respondents and responses based upon the number of borrowers per affected entity . We estimate that of the currently approved 25,347,555 respondents spread across 38 subsections of 34 CFR 682 that ha ve burden in OMB 1845

- 0020, there is an average of 667,041 respondents per subsection (25,347,555 divided by 38). However, with the removal of several sections from the regulations, we estimate that burden, the number of respondents, as well as the number of responses will decrease by 5 percent making the number of respondents and responses 633,689 (667,041 multiplied by

.95) For profit FFE L lenders had 86.98 percent of the FFEL borrowers for the most recentl y completed year’s data, therefore we estimate that there are 551,183 respondents ( 6 33,6 89 multiplied by

.8698). Private not

- for

- profit lenders had 13 percent of the FFEL26

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- AD 12 borrowers for the most recently completed y ear’s data, therefore we estimate that there are 82,380 respondents and responses ( 6 33, 6 89 multiplied by .13 00 ). Public lenders had .02 percent of the FFEL borrowers for the most recently completed y ear’s data, therefore we estimate that there are 1 26 respondent s and responses ( 6 33,6 89 multiplied by .0002). Section 682.414

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 33,352 33,352 16,253

---------- ----------- ------------ Equals 633,689 633,689 .487313 2 308,805 Section 682.417

- Determination of Federal funds or assets to be returned

. The proposed regulations make no changes to this section of the regulations. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.417

- New Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .4873134 325,058 Section 682.418

- Prohibited uses of the assets of the Operating Fund during periods in which the Operating Fund contains transferred fun ds owed to the Federal Fund

. The proposed regulations would remove §682.418 from the FFEL regulations. The proposed change would remove all of the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020 .The number of respondents and r esponses are also reduced to zero

. Section 682.418

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.421

- Funds transferred from the Federal Fund to the Operating Fund by a guarant y agency . The proposed regulations would remove §682.421 from the FFEL regulations. The proposed change would remove the prior burden assessme nt of 325,058 hours under27

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- AD 12 OMB Control Number 1845

- 0020 . The number of respondents and the number of responses are also reduced to zero

. Section 682.421

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.507

- Due diligence in collecting a loan

. Section 682.508

- Assignment of a loan

. Section 682.511

- Procedures for filing a claim

. Section 682.515

- Records, reports, and inspection requirements for Federal GSL program lenders The proposed regulations would remove all of the regulations under subpart E (§§682.500 through 682.515) and reserve the subpart. The proposed regulations would also remove FISL

- related Appendix C to part 682 from the regulations. The proposed change would remove the prior burden assessment of 1,300,232 hours (325,058 hours per section m u ltiplied by 4 sections) u nder OMB Control Number 1845

- 0020 . The number of respondents and responses are also reduced to zero

. Section 682.507

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.508

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 028

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- AD 12 Section 682.511

– Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.51 5
- Changed Burden: # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0
Section 682.602

- Rules for a school or school

- affiliated organization that makes or originates loans through an eligible lender trustee

. The proposed regulations w ould remove §682.602 from the FFEL regulations. The proposed change would remove the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020 . The number of respondents and responses are also reduced to zero

. Section 682.60 2

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- Equals 0 0 0 Section 682.603

- Certification by a school that participated in connection with a loan application The proposed regulations would make conforming language changes required due to the elimination of a cross reference and reorganization due to a deletion of previous requirements. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020.29

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- AD 12 Section 682.603

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .487313 4 325,058 Section 682.604

- Processing the borrower’s loan proceeds and counseling borrowers (Required exit counseling for borrowers)

. The proposed regulations would change the heading of §682.604, remove current paragraph (a), remove and reserve paragr aph (b), and remove paragraphs (c)

- (f) and (h). The proposed regulations would also re

- designate current paragraph (g) as paragraph (a). Newl y redesignated §682.604(a)(1) would be amended to include another option for providing exit counseling to a stude nt borrower who withdraws without the school’s knowledge or fails to complete required exit counseling. In addition to the existing options described under “Current Regulations,” a school could also send written counseling materials to an e

- mail address p rovided by the student borrower. Newl y redesignated §682.604(a)(2) would be amended b y replacing cross

- references to current paragraph (a), which we are proposing to remove, with the substantive information contained in the cross

- referenced provision that must be included in the counseling. A new paragraph (a)(5) would also be added to newly redesignated §682.604(a) to clarify that: (1) a school’s compliance with the Direct Loan Program exit counseling requirements in 34 CFR 685.304(b) satisfies the FFEL regulatory exit counseling requirements for student borrowers who received both FFEL and Direct Loan program loans for attendance at the school if the school provides the information required by §682.604(a)(2)(i) and (a)(2)(ii); and (2) a student’s comple tion of interactive exit counseling offered b y the Secretary meets both the FFEL exit counseling requirements and the Direct Loan exit counseling requirements in 34 CFR 685.304(b). The proposed changes would decrease the previous burden assessment of 32 5,058 hours by 211,288 hours, therefore the current burden of 325,058 hours would decrease to 113,770 hours under OMB Control Number 1845

- 0020. Section 682.604

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 433,577 433,577 211,288

---------- ---------- ----------- Equals 233,464 233,464 .4873128 113,770 Section 682.605

- Determining the date of a student’s withdrawal

. The regulatory language in this section has not changed. These proposed regulations would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020.30

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- AD 12
Section 682.605

- New Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .487313 4 325,058 Section 682.610

- Administrative and fiscal requirements for schools that participated

. These proposed changes would not alter the prior burden assessment of 325,058 hours under O MB Control Number 1845

- 0020. Section 682.610

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 .4873134 325,058 Section 682.711

- Reinstatement after termination

. The proposed regulations remove the language regarding the loss of a school lender’s participation upon the loss of the school’s eligibility to participate in Title IV, Federal Student Assistance. These proposed changes would not alter the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.711

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .4873134 325,058 Section 682.712

- Disqualif ication review of limitation, suspension, and termination actions taken b y guarantee agencies against lenders

. The proposed regulations would remove a cross

- reference to a section proposed for deletion. These proposed changes would not alter the prior bur den assessment of 325,058 hours under OMB Control Number 1845

- 0020. Section 682.712

- Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 .4873134 325,05831

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- AD 12 Section 682. 713 Disqualification review of limitation, suspension, and termination actions taken b y guaranty agencies against a school

. The proposed regulations would remove §682.713 from the FFEL regulations. The proposed change would remove the prior burden assessment of 325,058 hours under OMB Control Number 1845

- 0020 . The number of respondents and the number responses are also reduced to zero

. Section 682.713

- Changed Burden : # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,401 325,058 Less 667,041 667,401 325,058

---------- ---------- ----------- E quals 0 0 0 The Department is requesting a revision of the current FFEL Program information collection under OMB 1845

- 00 20 to reflect the proposed regulatory changes explained above

. Currently Approved Number s : # of Respondents # of Responses Hours/Response Burden Hours 25,347,555 25,347,555 12,352,197 New Burden : Section 682.102: # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.200 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.205 # of Respondents # of Responses Hours/Response Burden Hours 333,521 333,521 162,529 Sec tion 682.206 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.208 # of Respondents # of Responses Hours/Res ponse Burden Hours 667,041 667,041 325,058 Section 682.209 # of Respondents # of Responses Hours/Response Burden Hours 533,633 53 3 ,363 260,046 Section 682.210 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,05832

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- AD 12 Section 682.211 # of Respondents # of Responses Hours/Response Burden Hours 722,60 8 722,60 8 334,504 Section 682.212 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.214 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.216 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.301 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.305 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.401 # of Respondents # of Responses Hours/Response Burden Hours 600,337 600,337 292,552 Section 682.402 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.404 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.405 # of Respondents # of Responses Hours/Response Burden Hours 9 81,907 9 81,907 460,417 Section 682.406 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.409 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.410 # of Respondents # of Responses Hours/Response Burden Hours 939,085 939,085 413,460 Section 682.411 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.412 # of Respondents # of Respons es Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.41433

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- AD 12

# of Respondents # of Responses Hours/Response Burden Hours 633,689 633,689 308,805 Section 682.417 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Sec tion 682.418 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.421 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.507 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.508 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.511 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.515 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682 .602 # of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Section 682.603 # of Respondents # of Responses Hours/ Response Burden Hours 667,041 667,041 325,058 Section 682.604 # of Respondents # of Responses Hours/Response Burden Hours 233,464 233 ,464 113,770 Section 682.605 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.610 # o f Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.711 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.712 # of Respondents # of Responses Hours/Response Burden Hours 667,041 667,041 325,058 Section 682.71334

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- AD 12

# of Respondents # of Responses Hours/Response Burden Hours

0 0 0 Sub

- total of New Burden : # of Respondents # of Responses Hours/Response Burden Hours 16,9 84,98 2 1 6 , 9 84,98 2 8,197,127
Diffe rence : ( 8 , 3 62 , 57 3 ) (8,3 62 ,57 3 ) ( 4, 155,070 ) 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 I tems 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. I nclude descriptions of methods used to estimate major cost factors including s ys tem and technology acquisition, expected useful life of capital equip ment, the discount rate(s), and the time period over which costs will be incurred. Capital and start
- up costs 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 expected to vary widel y, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of contracting out information c ollection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60

- day

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

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

 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) for reasons other than to provide information or keep records for the government or (4) as part of customary and usual business or private practices. Als o, these estimates should not include the hourly costs (i.e., the monetization of the hours) captured above in Item 12 Total Annualized Capital/Startup Cost : Total Annual Costs (O&M) :

___ _________________ Total Annualized Costs Requested :35

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- AD 12 There are no capital/startup costs to respondents, nor are there an y annual costs to respondents associated with operating or maintaining s ys tems or purchasing services. 14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to esti mate 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 agg regate cost estimates from I tems 12, 13, and 14 in a single table. The cost to the federal government is minimal

. 15. Explain the reasons for an y 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 t ype 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)

. The Department is requesting a revision of the current FFEL Program information collection under OMB 1845

- 0020 to reflect the statutory and regulatory

changes to the program. The proposed regulations modify forbearance provisions, reasonable and affordable loan rehabilitat ion processes, and a number of provisions affecting administrative wage garnishment provisions. Substantial changes would be made to the proposed repeal of unneeded FFEL regulations in 34 CFR 682 as a result of the Student Aid and Fiscal Responsibility (S AFRA) Act that was included in the Health Care and Reconciliation Act of 2010 (HCERA) which, as of July 1, 2010, terminated the authority for lenders to make new loans under the FFEL program. There is a proposed overall reduction of 4,155,070 in burden ho urs from the current collection.

- 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analy

tical techniques that will be used. Provide the time schedule for the entire p roject, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions. The results of this collection of information will not be published. 17. If seeking approval to not display the exp iration date for OMB approval of the information collection, explain the reasons that display would be inappropriate. The Department is not seeking this approval.36

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- AD 12 18. Explain each exception to the certification statement identified in the Certification o f Paperwork Reduction Act. The Department is not requesting an y exceptions to the “Certification for Paperwork Reduction Act Submissions” of OMB Form 83

- 1.