Supporting Statement

Information Collection for the William D. Ford Federal Direct Loan Program:

Federal Direct PLUS Loan Application and Master Promissory Note

Endorser Addendum to Federal Direct PLUS Loan Application and Master Promissory Note

OMB No. 1845-0068

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 copy of the 

appropriate section of each statute and regulation mandating or authorizing the collection of 

information.

Section 455(i) of the Higher Education Act of 1965, as amended (the HEA) requires the U.S. 

Department of Education (the Department) to develop, print, and distribute a standard 

promissory note to schools that participate in the William D. Ford Federal Direct Loan (Direct 

Loan) Program. Under 34 CFR 685.201(b), a parent or a graduate or professional student who 

wishes to borrow a Federal Direct PLUS (Direct PLUS) Loan must complete a Direct PLUS Loan 

MPN. The Direct PLUS Loan Application and Master Promissory Note (MPN) was developed in 

accordance with §432(m)(1)(D) of the HEA, which requires the Department to develop and use 

master promissory notes for loans made under the Direct Loan program. A master promissory 

note is a promissory note under which a borrower may receive loans for a single academic year 

or multiple academic years (see 34 CFR 685.102(b)). A master promissory note has been used 

for Direct PLUS Loans since the 2003-2004 program year.

Under §428B(a)(1)(A) of the HEA, one of the eligibility requirements to receive a Direct PLUS 

Loan is that a parent or a graduate or professional student borrower must not have an adverse 

credit history, as determined by regulations issued by the Department. The Direct Loan Program 

regulations allow a parent or a graduate or professional student who has an adverse credit 

history to receive a Direct PLUS Loan if the individual obtains an endorser who does not have an 

adverse credit history (34 CFR 685.200(b)(5) and 34 CFR 685.200(c)(1)(vii)(A)(2)). The Endorser 

Addendum to the MPN is the means by which an endorser agrees to repay a Direct PLUS Loan if 

the borrower does not repay the loan. If an applicant for a Direct PLUS Loan is determined to 

have an adverse credit history and obtains an endorser, only one loan can be made under the 

MPN. To obtain a subsequent Direct PLUS Loan, the borrower must complete a new MPN.

The Department is requesting a revision of the currently approved collection. The Department is 

making changes to the currently approved forms that include the following:

 Updating information about the interest rate for Direct PLUS Loans to reflect recent 

changes made by the Bipartisan Student Loan Certainty Act of 2013.

 Adding information about the new Pay As You Earn repayment plan that was 

established by final regulations published on November 1, 2012 (77 FR 66088).

 Expanding the descriptions of the Income-Based and Income-Contingent repayment 

plans to provide more detailed information about these plans.
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OMB No. 1845-0068

 Removing information about the no-longer-available up-front interest rebate repayment 

incentive.

 Replacing the single “Repaying Your Loans Chart” at the end of the Borrower’s Rights 

and Responsibilities Statement that accompanies the MPN and Endorser Addendum 

with four separate charts. The single chart in the currently approved forms covers only 

the Standard, Graduated, and Extended repayment plans, and for the Extended plan it 

provides sample payment amounts only for the Extended-Fixed payment option. The 

proposed revised forms will include a new Standard/Graduated/Extended plan chart 

that provides sample payment amounts for both the Extended-Fixed and ExtendedGraduated payment options, plus three new charts that provide sample payment 

amounts for the Income-Based, Pay As You Earn, and Income-Contingent repayment 

plans. 

 In various places, revising language to present information more clearly and concisely.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a

new collection, indicate the actual use the agency has made of the information received from 

the current collection.

The Department will continue to use the information collected on the MPN and Endorser 

Addendum to determine the eligibility of the borrower and endorser, and to process and service 

Direct PLUS Loans made to parent and graduate and professional student borrowers. The MPN 

serves as the borrower’s legally binding promise to repay all loan amounts disbursed under that 

MPN. The Endorser Addendum serves as the endorser’s legally binding promise to repay a Direct 

PLUS Loan if the borrower does not repay the loan. 

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 Department makes maximum use of available information technology to process the MPN 

and Endorser Addendum. A school may use information reported on the Free Application for 

Federal Student Aid (FAFSA) by a graduate or professional student borrower or by the student 

for whom a parent is borrowing a Direct PLUS Loan to complete portions of the MPN before the 

MPN is given to the borrower to sign. This reduces burden by eliminating the need for the 

borrower to provide the same information again. Similarly, schools electronically transmit 

information collected on the MPN to the Department. That information is then used by the 

Department to preprint borrower and/or student information on the Endorser Addendum if an 

applicant for a Direct PLUS Loan is determined to have an adverse credit history.

Since the introduction of the Direct PLUS Loan MPN, the Department has offered borrowers the 

option of completing the MPN through an entirely electronic process, using a personal 

identification number (PIN) provided by the Department. This process is essentially the same as 

the electronic MPN process that has been available to Direct Subsidized and Direct Unsubsidized 

loan borrowers since the 2001-2002 program year. The electronic MPN process for Direct PLUS
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OMB No. 1845-0068

Loans uses an HTML (hypertext markup language) version of the paper MPN and stores the 

HTML version as the authoritative copy of the MPN. The text and data elements on the HTML 

version are identical to the text and data elements on the paper MPN. Currently, approximately

98% of Direct PLUS Loan MPNs are completed electronically.

Since the spring of 2010, the Department has also offered Direct PLUS Loan endorsers the 

option of completing the Endorser Addendum through an entirely electronic process that is 

modeled on the electronic process for the Direct PLUS Loan MPN, as described above. Currently, 

approximately 96% of Direct PLUS Loan endorsers complete the Endorser Addendum 

electronically. 

4. Describe efforts to identify duplication. Show specifically why any similar information 

already available cannot be used or modified for use for the purposes described in Item 2 

above.

Except as explained in Item 3, above, there is no information available from other sources that 

can be used for the purposes described in Item 2.

5. If the collection of information impacts small businesses or other small entities (Item 8b of 

IC Data Part 2), describe any methods used to minimize burden.

No small businesses are affected by this information collection.

6. Describe the consequences to Federal program or policy activities if the collection is not 

conducted or is conducted less frequently, as well as any technical or legal obstacles to 

reducing burden.

A borrower is required to complete an MPN in order to receive a Direct PLUS Loan. However, 

the MPN minimizes the frequency of data collection by allowing a borrower who has completed 

an initial MPN (other than a borrower with an adverse credit history who obtains an endorser) 

to receive subsequent loans for up to 10 years without signing another MPN, if the student for 

whom a parent is borrowing or the graduate or professional student borrower is attending a 

school that has been authorized to use the MPN as a multi-year promissory note and chooses to 

do so. 

The MPN also reduces burden for Direct PLUS Loan borrowers attending schools that are not 

authorized to use the multi-year feature of the MPN or that choose not to do so, since they may 

receive subsequent loans during the same academic year without having to sign a new MPN. 

The Endorser Addendum must be completed each time a borrower who is determined to have 

an adverse credit history obtains an endorser for a Direct PLUS Loan. 

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 quarterly;

 requiring respondents to prepare a written response to a collection of information in 

fewer than 30 days after receipt of it;
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OMB No. 1845-0068

 requiring respondents to submit more than an original and two copies of any 

document;

 requiring respondents to retain records, other than health, medical, government 

contract, grant-in-aid, or tax records for more than three years;

 in connection with a statistical survey, that is not designed to produce valid and 

reliable results than can be generalized to the universe of study;

 requiring the use of a statistical data classification that has not been reviewed and 

approved by 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 unnecessarily impedes 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.

This information collection does not involve any of the conditions listed in 5 CFR 1320.5(d)(2).

8. If applicable, provide a copy and identify the date and page number of publication in the 

Federal Register of the agency’s notice, required by 5 CFR 1320.8(d), soliciting comments on 

the information collection prior to submission to OMB. Summarize public comments received 

in response to that notice and describe actions taken by 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 any), 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 years – 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.

The MPN for Direct PLUS Loans is modeled on the MPN for Direct Subsidized Loans and Direct 

Unsubsidized Loans, which was developed and improved by the Department in consultation 

with schools and other members of the financial aid community.

On August 22, 2013 a notice was published in the Federal Register (78 FR 52169) soliciting 

comments on the revised MPN and Endorser Addendum. The Department received no public 

comments. However, we have made a number of changes to the MPN and Endorser Addendum 

in response to internal reviews of the documents by the Department’s federal loan servicers and 

other Department offices. These are minor changes to wording and formatting for greater 

clarity. We have made no substantive changes to the text of the MPN and Endorser Addendum 

that were posted for public comment during the 60-day comment period, nor have we added 

any new data elements or modified existing data elements. 
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OMB No. 1845-0068

9. Explain any decision to provide any payment or gift to respondents, other than 

remuneration of contractors or grantees.

No payments or gifts will be provided to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the 

assurance in statute, regulation, or agency policy.

The MPN and Endorser Addendum each include a Privacy Act Notice that (1) provides the 

statutory authority for the information collection, (2) explains that disclosure of the information 

is voluntary, but is required for participation in the Direct Loan Program, and (3) identifies the 

third parties to whom the information may be disclosed, and explains the circumstances under 

which such disclosures may occur.

11. Provide additional justification for any questions of a sensitive nature, such as sexual 

behavior and attitudes, religious beliefs, and other matters that are commonly considered 

private. The justification should include the reasons why the agency considers the questions 

necessary, the specific uses to be made of the information, the explanation to be given to 

persons from whom the information is requested, and any steps to be taken to obtain their 

consent.

The MPN and Endorser Addendum do not require respondents to provide any information that 

would be considered sensitive.

12. Provide estimates of the hour burden of the collection of information. The statement 

should:

 Indicate the number of respondents, frequency of response, annual hour burden, 

and an explanation of how the burden was estimated. Unless directed to do so, 

agencies should not conduct special surveys to obtain information on which to 

base hour burden estimates. Consultation with a sample (fewer than 10) of 

potential respondents is desirable. If the hour burden on respondents is expected 

to vary widely because of differences in activity, size, or complexity, show the 

range of estimated hour burden, and explain the reasons for the variance. 

Generally, 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 item 16 of IC 

Data Part 1.

 Provide estimates of annualized cost to respondents of the hour burdens for 

collections of information, identifying and using appropriate wage rate categories. 

The cost of contracting out or paying outside parties for information collection 

activities should not be included here. Instead, this cost should be included in 

Item 14.

The Department estimates the total annual number of respondents for this information 

collection to be 1,087,407 (an estimated 1,022,877 respondents for the MPN and 64,530

respondents for the Endorser Addendum). The estimated time required to complete an MPN or 
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OMB No. 1845-0068

Endorser Addendum is 0.5 hours hour (30 minutes). Based on one response per respondent, this 

equates to a total estimated annual reporting burden of 543,704 hours. 

There is an annual estimated cost to respondents of $10,598.00, calculated by multiplying the 

estimated number of respondents who do not complete the MPN or Endorser Addendum 

electronically (23,039) by the cost of postage ($0.46) required to return the MPN or Endorser 

Addendum. Borrowers who complete the MPN electronically incur no postage costs. They may, 

however, incur minimal costs imposed by Internet providers for Internet access. The 

Department expects that in most cases, any Internet access fees charged to borrowers for the

time required to complete an MPN electronically would be less than the cost of postage.

13. Provide an estimate of the total annual cost burden to respondents or record keepers 

resulting from the collection of information. (Do not include the cost of any hour burden 

shown in Items 12 and 14.)

 The cost estimate should be split into two components: (a) a total capital and start-up 

cost component (annualized over its expected useful life); and (b) a total operation 

and maintenance and purchase of services component. The estimates should take 

into account costs associated with generating, maintaining, and disclosing or providing 

the information. Include descriptions of methods used to estimate major cost factors 

including system and technology acquisition, expected useful life of capital equipment, 

the discount rate(s), and the time period over which costs will be incurred. Capital and 

start-up 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 widely, 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 economic or regulatory impact analysis 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.

Total Annualized Capital/Startup Cost:

Total Annual Costs (O&M):

_______

Total Annualized Costs Requested:

There are no capital/startup costs to respondents, nor are there any annual costs to 

respondents associated with operating or maintaining systems or purchasing services. 

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, 
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OMB No. 1845-0068

operational expenses (such as equipment, overhead, printing, and support staff), and any 

other expense that would not have been incurred without this collection of information. 

Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.

The total estimated annual cost to the Federal government for this information collection is 

$20,827.00. This represents costs associated with printing and distributing the paper versions of 

the Direct PLUS Loan MPN. It is not possible to provide annualized costs associated with the 

implementation of the electronic versions of the Direct PLUS Loan MPN and Endorser 

Addendum, or with the printing of the paper version of the Endorser Addendum. The terms of 

the Department’s contract with the entity that is responsible for performing these functions 

(and other functions) does not provide for itemization of costs associated with specific 

functions.

15. Explain the reasons for any program changes or adjustments to #16f of the IC Data Part 1 

Form.

There is a decrease of 138,406 hours due to a decrease in the number of respondents since the 

previous submission. The previous submission for this collection reported an increase in the 

number of respondents as a result of the Health Care and Education Reconciliation Act of 2010 

(Public Law 111-152), which terminated the authority of lenders to make new FFEL Program

loans effective July 1, 2010. As a result, all new PLUS loans made on or after July 1, 2010 have 

been made through the Direct Loan Program, and this resulted in an initial increase in the 

number of respondents completing the Direct PLUS Loan MPN and Endorser Addendum.

However, because in general a borrower only needs to complete a Direct PLUS Loan MPN once

to receive Direct PLUS Loans for up to 10 years, there has been a decrease in the number of 

respondents since the previous submission.

16. For collections of information whose results will be published, outline plans for tabulation 

and publication. Address any complex analytical techniques that will be used. Provide the 

time schedule for the entire project, including beginning and ending dates of the collection of 

information, completion of report, publication dates, and other actions.

The results of this information collection 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 any exceptions to the “Certification for Paperwork Reduction 

Act Submissions” of OMB Form 83-I.

B. Collection of Information Employing Statistical Methods

This information collection does not employ statistical methods.