1

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /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 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. This request is for a revision to the current information collection 1845
- 0038 that is expiring . This collection pertains to the recordke eping requirements contained in the regulations 

### related to the administration of the Subpart K

- Cash Management section of the Student Assistance General Provisions . The regulatory language has not changed. These program regulations are designed to prov ide benefits to Title IV, HEA applicants , and protect the taxpay ers' interest. The information collection requirements in these regulations are necessary to provide students with required information about their eligibility to receive funding under the federal student financial aid programs and to prevent fraud and abuse of program funds by allowing students to reduce or reject aid being offered as well as being made aware of when such funding can be expected to be available. The Office of Management an d Budget (OMB) Information Collection number 1845

- 0 0 38 currentl y includes regulatory requirements for sections 34 CFR 668.23, 668.24, 668.163, 668.165, and 668.167 . We are requesting that section s 668.23 and 668.24 of this collection package be transferre d to OMB collection 1845

- 0022
. These two sections are not part of Subpart K and in researching this anomaly , it was discovered that prior to the transfer of the collection from the Office of Postsecondary Education (OPE) 1840 series to Federal Student Aid (FSA) 1845 series, 668.23 and 668.24 were part of the OMB collection 1840
- 0537 which transferred to OMB collection 1845
- 0022. To correct this anomaly , the Department is requesting a transfer of the 1,26 0 hours currently attributable to sections 668.23 an d 668.24 to the proper OMB information collection 1 845
- 0022. Additionally , as of July

1, 2010, the authority

for the mak ing of new loans under the Federal Family

Education L oan (FFEL) program was terminated as a result of the Student Aid and Fiscal Resp onsibility (SAFRA) Act that was included in the Health Care and Reconciliation Act of 2010 (HCERA)
. Correspondingl y, we are removing the 1,750 hours that are currently

attributable to section 668.167, FFEL Program funds.

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

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable) The burden for the remaining sections 34 CFR 668.163 and 668.165 is being updated to more accurately

reflect the number of participating institutions and federal st udent aid recipients. Links to specific regulatory language are provided above. 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 re ceived from the current collection. There is no change to the purpose and use of the information
. The schools are required to identify bank accounts that hold federal student aid funds with the word “Federal” in the name of the account. Schools are also required to provide federal student aid recipients with notifications of the types of aid to be disbursed, as well as allow recipients to cancel all or a portion of the loan or TEACH Gr ant. Additionally , schools are required to provide authorizations from the recipients to use funds to pay other charges, or hold funds in a student’s account that would otherwise be disbursed directly to the aid recipient. These requirements are all reco rdkeeping and the institutions must make this information available at the time of an y audit or program review to ensure that the institutions are in compliance with the regulations
. 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 an y consideration given to using technology

to reduce burden. Institutions may

use available technology to transmit documents to and receive documents from federal student aid recipients. This allows for automation of the notices and documenting that they were sent as required. 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. There is no duplication of data as a result of the collection of this information. 5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden. A small en tity 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 dominant 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 impacted b y this collect ion.3

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable) 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. If institutions were not to perform the require ments of these regulations federal student aid recipients would not be able to easily plan their budgets for pay ing for the various costs of attending the institution. Additionally , without the authorization requirements an aid recipient may

have undue bu rden placed on them to pay past or upcoming charges. 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, oth er than health, medical, government contract, grant - in

- aid, or tax records for more than three y ears;  in connection with a statistical survey , that is not designed to produce valid and reliable results than can be generalized to the universe of study ;  requ iring 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 da ta 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 unl ess the agency can demonstrate that it has instituted procedures to protect the information’s confidentiality to the extent permitted by law. This information collection requirement is consistent with all of the guidelines in 5 CFR 1320.5(d)(2).
8. As appli cable, 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 noti ce 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, freq uency

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.4

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable) Consultation with representatives of those from whom information is to be obtain ed 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 circu mstances should be explained. There has been no change to the underl yi ng statutory or regulatory

language. There w as a 60
- day notice in the Federal Register seeking public comment on the se burden calculations. No public comments were received. This notice is the 30

- day notice seeking public comments on the burden calculations. 9. Explain any

decision to provide any

pay ment or gift to respondents, other than remuneration of contractors or grantees with meanin gful 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) is being collected, a Privacy Act statement should be included on the 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 confid entiality 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 exp ectation of confidentiality , simply state that the Department make s no pledge about the confidentiall y of the data. There is no assurance of confidentiality provided to institutions for the submission of this information. 11. Provide 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 the questions ne cessary , 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 e stimates of the hour burden of the collection of information. The statement should:

2 Requests for this information are in accordance with the follow ing ED and O MB 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 I mp lem enting 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

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable)

 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 third party disc losure. 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 i s 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 should 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 a t 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 appropriate 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. The hours identified below reflect recordkeeping burden. Current Bu rden Hour T otals Respondents Responses Hours 2 3 , 768 1,03 2,008 952,788 As noted in I tem 1, the Department is requesting the removal of the respondents (36), responses (36) and hours (1,260) currentl y identified for 34 CFR Sections 668.23 and 668.24 and transfer of the m to OMB information collection 1845

- 0022 which is scheduled for re

- evaluation in August 2013. This would decrease the burden for 1845

- 0038 as follows: Respondents Responses Hours 23,768 1,032,008 952,788

- 36
- 36
- 1,260 23,732 1,031,972 951,528 With these figures as a new starting point , the Department is requesting the removal of all resp ondents, responses and hours associated with 34 CFR 668.167

- FFEL Program Funds as the FFEL program is no longer making new loans and there is no longer burden for requesting or returning funds to FFEL program lenders. This would decrease the burden for 1845
- 0038 as follows:6

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable)

Respondents Responses Hours 23,732 1,031,972 951,528

- 175
- 175
- 1,750 **23,557 1,031,797**  **949,778** Of these figures the new baseline for section : 668.163 is 3,634 respondents, 3,634 resp onses, and 4,477 hours. 668.165 is 1 9,923 respondents, 1,028,163 responses, and 945, 301 hours. With these figures as a new starting burden, the Department is requesting the following updates to the recordkeeping for 34 CFR Sections 668.163 and 668.165. 34 CFR 668.163

– Maintaining and accounting for funds

– identifies how institution s ’ accounts into which federal student aid funds are to be established and maintained. I t also identifies how institutional accounting and internal controls are to be mainta ined
. The Department will increase the number of respondents to more accurately reflect the number of participating institutions, both domestic and foreign. T he burden assessed for this section is based on 3,634 respondent institutions with 1 response each for 4,477 burden hours (4 , 477/3,634 =1.23 19757 hours).

Respondents & Responses Burden Hours For
- profit institutions

– 1,2 89 x 1.23 19757 hours = 1, 5 88 Private institutions

– 1,0 75 x 1.23 19757 hours= 1, 324 Public institutions

– 1, 270 x 1.23 19757 hours= 1, 565 3,634 4 , 477 The current number of certified, eligible institutions is 6,251 . There remains 1 response for each institution multiplied by 1.23 hours. Subtracting the current information collection r espondents an d responses from the current eligible institutions equals 2,617 (6,251

- 3,634) . 2,617 multiplied by 1.23 hours equals 3,219 (rounded up from 3,218.91)
. Respondents & Responses Burden Hours For
- profit institutions

– 916 x 1.23 19757 hours = 1 , 12 8 Private institutions

– 759 x 1.2319757 hours= 93 5 Public institutions

– 942 x 1.23 19757 hours= 1 , 1 61

2,617 3,2 24 This increase in respondents, responses and hours is added to the current information collection burden assessment

Respondents Responses Hours Revised baseline 3,634 3,634 4,477 New burden + 2,617 + 2,617 + 3,2 24 New Section Burden 6, 251 6 , 251 7 , 7017

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable)
34 CFR 668.165

– Notices and authorizations

– requires that institution’s provide their federal student aid recipients with information about how much aid the recipient can expect to receive, when the aid will be available , provide the recipients the option of decreasing or eliminating loan or TEACH Grant fund ing if desired , and receive affirmative confirmation from the recipient of the accepted aid . Additionally , the institution must allow for a recipient to elect to have the institution hold aid funds and allow for the recipient to change that authorization at an y time in writing. The current information collection b urden assessed for this section is based on 19,923 respondent s, 1,028,163 responses for 945 , 301 burden hours (0.9194077 hours per response)
. Of the estimated 15 million aid recipients who wo uld receive the notices and provide the appropriate authorizations, it is estimated that 35% or 5,250,000 are first time aid recipients and it would take them approximately 5 minutes to review the information being provided or 420,000 hours (5,250,000 x 0.08 = 420,000 hours). Of the approximately

15 million aid recipients it is estimated that 65% or 9,750,000 will have received aid previously

and will be able to review and respond in approximately 3 minutes or 487,500 hours (9,750,000 x 0.05 = 487,500 ho urs). Lastl y, it is anticipated that approximately

1% or 150,000 of the aid recipients will wish to alter their award based on the notifications which will require an additional 3 minutes or 7,500 hours (150,000 x 0.05 = 7,500 hours) to revise and then re view the second notification with any changes to the award package. There are 6,251certified, eligible institutions who would be required to provide these notifications to their aid recipients. It is expected that the notification process is a highl y a utomated one and would take approximately 2 minutes per the estimated 15,150,000 aid recipients. Respondents Responses Burden Hours Individuals First time recipients 5,250,000 5,250,000 x 0.08 hours = 420,000 Previous recipi ents 9,750,000 9,750,000 x 0.05 hours = 487,000 Recipients who request a n award change 150,000 150,000 x 0.05 hours = 7,500 For
- profit institutions

2,205 3,030,000 x 0.03 hours = 90,900 Private institutions

1,834 2,8 78 , 5 00 x 0.03 hours = 8 6 , 35 5 Public institutions

2,212 9,241,500 x 0.03 hours = 277,245 New Section Burden Totals *

15,156,251 30,300, 000 1,369,0008

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /2013 RIN Number: XXXX

- XXXX (if applicable)
* The total of respondents, responses and hours includes the current information collection burden assessment
. The revised information collection total for 1845

- 0038 is shown here: Respondents Responses Burden Hours 15,162,50 1 30,306,251 1,376,6 701 An increase of: Respondents Responses Burde n Hours 15, 138,945 29 , 274 , 454 426 , 9 23 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 tak e 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 equ ipment, 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 a nd 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 collection 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 econom ic 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 : There is no new sy stem start - up costs asso ciated with these final regulations.9

ICRAS Tracking and OMB Number: (1413) 1845

- 0038 Revised: 10 / 22 /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 I tems 12, 13, and 14 in a single table. There are no additi onal costs to the Federal government as a result of the regulation s . 15. Explain the reasons for an y program changes or adjustments. Generally, adjustments in burden result from re

- estimating burden and/or from economic phenomenon outside of an agency ’s c ontrol (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 agen cy 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 increase of 15,138,945 respondents, 29,274,454 responses, an d 426,9 23 hours in this adjustment is caused b y the re

- estimation of burden due to the increase in the number of participants and eligible and certified institutions during the time from the last filing of this collection that dealt with 34 CFR sections 66 8.163 and 668.165
. There is no new statutory or regulatory

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

tical techniques that wi ll 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. The results of the collection of information will not be published.
17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate. The Department is not seeking this approval.
18. Explain each exception to the certification statement identified in the Certification of Paperwork Reduction Act. The Department is not requesting an y exceptions to the “Certification of Paperwork Reduction Act Submissions”.