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EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 RIN Number: XXXX
- XXXX (if applicable)

**SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION**  **Student Assistance General Provisions**

**– Non**  **- Title IV Revenue Requirements (90/10)**  **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, briefl y specify the changes. If a rulemaking is involved, make note of the sections or changed sections, if applica ble. As provided b y the Higher Education Opportunity Act (Pub. L . 110
- 315) , the regulations provide that a proprietary institution must derive at least 10% of its annual revenue from sources other than Title IV, HEA funds , sanctions for failing to meet th is requirement, and otherwise implement the statute by 1) specifying a Net Present Value (NPV) formula used to establish the revenue for institutional loans, 2) providing an administratively easier alternative to the NPV calculation, and 3) describing more full y the non
- Title IV eligible programs from which revenue may be counted for 90/10 purposes. The regulations require an institution to disclose in a footnote to its audited financial statements the amounts of Federal and non
- Federal revenues, b y catego ry , that it used in calculating its 90/10 ratio (see section 487(d) of the HEA). This request is for extending approval of reporting requirements contained in the regulations related to the administrative requirements of the non
- Title IV revenue requireme nt (90/10) program. The information collection requirements in the regulations are necessary

to determine eligibility

to receive program benefits and to prevent fraud and abuse of program funds. Section 668.28(b)

– Net present value (NPV) The regulation provides the formula for the net present value (NPV) that institutions calculate if they

do not elect to use the optional fifty (50) percent of the total amount of the loans it made during the fiscal ye ar.

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

EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 RIN Number: XXXX
- XXXX (if applicable) Section 668.28(c)

– Sanctions The proposed regulation provides that the institution must notify the Secretary

no later than 45 day s after the end of the fiscal ye ar if it fails to meet the 90/10 requirement. 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 regulations moved the 90/10 requirement from the definition of the institution of higher education to the program participation agreement section of the regulations and changed the information that must be collection from proprietary schools about the revenue source that must be reported to the Department. The institutions reporting of the meeting or failure to meet the 90/10 reve nue requirements as reported as a footnote to the required annual financial audit will allow the Department to institute either provisional certification or loss of eligibility to participate proceedings. The institutional information regarding the failur e to meet the 90/10 revenue must be reported to the Secretary who must publicly

disclose the institutional information on the Department’s College Navigator Website. 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 reporting of this information via the audited financial statements may be sent to the Department in an electronic format using the eZ
- Audit process. 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 Item 2 above. There is no duplication of data as a result of the collection of this information. 5. If the col lection 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 dominant in its field; or (3) a small government jurisdiction, which is a government of a city , count y, town, townsh ip, school district, or special district with a population of less than 50,000. No small businesses are impacted b y this collection.3

EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 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. Per statute, the information must be collected annually
. 7. Explain any

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

 requiring respondents to report information to the agency more often than quarterl y;  requiring respondents to prepare a written response to a collection of information in fewer than 30 day s after receipt of it;  requiring respondents to submit more than an original and two copies of any document;  requiring respondents to retain records, other than health, medical, government contract, grant - in
- aid, or tax records for more than three y ears;  in connection with a statistical survey , that is not designed to prod uce 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 b y OMB;  that includes a pledge of confidentiality that is not supported by

autho rity 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 r espondents 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 information collection r equirements require no special circumstances. 8. As applicable, state that the Department has published the 60 and 30 Federal Register notices as required b y 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summ arize 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 represe ntatives 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.4

EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 RIN Number: XXXX
- XXXX (if applicable) This is the 60 day

comment period request. There has been no change to the regulations since 2009 when these regulations were last reviewed through negotiated rulemaking. 9. Explain any

decision to provide any

pay ment or gift to respondents, other than remuneration of contractors or grantees with meaningful justification
. There are no pay

ments or gifts to 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 confidentiality statement with a legal citation that authorizes the pledge of confidentiality should be provided. 2 If the collection is subject to the Privacy Act, the Privacy

Act statement is deemed sufficient with respect to confidentiality . I f there is no expectation of c onfidentiality , simply state that the Department make s no pledge about the confidentiall y of the data. The Department requirements do not cover an y confidential information. 11. Provide additional justification for an y questions of a sensitive nature, su ch as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. The justification should include the reasons wh y the agency considers the questions necessary , the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and 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 third p arty disclosure. All narrative should be included in item 12. Unless directed to do so, agencies should not conduct special survey s to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential resp ondents 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

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

– Privacy Act Implementation

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

– Federal Agency Responsibilities for Maintaining 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

EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 RIN Number: XXXX
- XXXX (if applicable)

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 at minimum include Respondent types, IC activity , Respondent and Responses, Hours/Response, and Total Hours)  Provide estimates of annualized cost to respondents of the hour burdens for collections of information, identifying and using appropriate w age 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 hours for proprietary schools to calculate and report the non - Title IV revenue (90/10) requirement will be 1 to 2 hours depending upon the calculation method selected by the institution. Affected Entities and Burden : # of # of # of Respondents Responses Burden Hours Insti tutions: Proprietary

(full NPV calculation) 1,101 1,101 X 2 hours = 2,202 hours Proprietary

(50% of total loans) 1,100 1,100 X 1 hours = 1,100 hours TOTAL 2,201 2,201 3,302 hours Current Burden Inventory : # of Respondents # of Responses # of Burden Hours 2,0 67 2,0 67 3,08 8 Revised Burden Inventory : # of Respondents # of Responses # of Burden Hours 1 34 1 34 21 4 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 m ajor cost factors including s ys tem and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start - up 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.6

EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 RIN Number: XXXX
- XXXX (if applicable)

 If cost estimates are expected to vary widel y, agencies should present ranges o f 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 (fe wer than 10), utilize the 60
- day

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

impact anal ys is associated with the rulemaking containing the information collection, as 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 r ecords for the government or (4) as part of customary and usual business or private practices. Also, these estimates should not include the hourly costs (i.e., the monetization of the hours) captured above in Item 12 Total Annualized Capital/Startup Cost : Total Annual Costs (O&M) :

____________________ Total Annualized Costs Requested : The Department estimates that the cost to the institutional respondents will be: # of Est. $/ Est. $ of Respondents Hour Burden Institutions: P roprietary

(full NPV calculation) 1,101 X $24.61 X 2 hours = 54,191 hours Proprietary

(50% of total loans) 1,100 X $24.61 X 1 hours = 27 , 071 hours TOTAL 2,201 81,262 hours 14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table. There is no new sy stem start - up costs associated with these proposed regulations. 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 control (e.g., correcting a burden estimate or an organic increase in the size of the reporting universe). Program change s 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 to tals for changes in burden hours , responses and cost s (if applicable)
.7

EDICS Tracking and OMB Number: ( 04938 ) 1845
- 0096 v2 Revised: 09 / 2 6 /2012 RIN Number: XXXX
- XXXX (if applicable) This request is to extend the current information collection. There has been no revision to the regulations requiring reporting of the specific 90/10 revenue. The change to the burde n hours is due to the minimal increase in the number of institutions required to report such information. 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analy

tical tec hniques 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. Institutions that fail to meet the 90/10 Rule will be identified publicly on the Department’s College Navigator website. 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 for Paperwork Reduction Act Submissions” of OMB Form 83
- 1.