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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

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 copy 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 section1. Specify the 

review type of the collection (new, revision, extension, reinstatement with change, reinstatement 

without change). If revised, briefly specify the changes. If a rulemaking is involved, make note 

of the sections or changed sections, if applicable.

As provided by 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 this 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 fully 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, by category, 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 published on October 29, 2009 (74 FR 55937) related to the administrative 

requirements of the non-Title IV revenue requirement (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 year.

 

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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

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 days after the end of the fiscal year 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 revenue 

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 failure 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 specifically why any similar information 

already 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 collection of information impacts small businesses or other small entities, describe any

methods used to minimize burden. A small entity may be (1) a small business which is deemed 

to be one that is independently owned and operated and that is not dominant in 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, county, town, township, school district, or special district with a 

population of less than 50,000.

No small businesses are impacted by this collection.
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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

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 frequently, as well as any technical or legal obstacles to reducing 

burden.

Per statute, the information must be collected annually. If the information is not collected 

annually a school not meeting this revenue requirement could continue to participate in 

the Title IV, HEA programs inappropriately, risking abuse of HEA program funding and 

inhibiting the Department’s ability to institute either provisional certification or loss of 

eligibility to participate proceedings against the institution. Additionally, the Department 

is required to publicly disclose the institutional information on the Department’s College 

Navigator Website.

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;

 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.

The information collection requirements require no special circumstances.

8. As applicable, state that the Department has published the 60 and 30 Federal Register notices 

as 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.
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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

RIN Number: XXXX-XXXX (if applicable)

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.

This is the 30 day comment period request. The 60 day Federal Register notice was 

published in Volume 77, page 60413 on October 3, 2012. There has been no change to 

the regulations since 2009 when these regulations were last reviewed through negotiated 

rulemaking. No public comments were received.

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

of contractors or grantees with meaningful justification.

There are no payments or gifts to respondents.

10. Describe any 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 Systems of Record Notice and the date a Privacy Impact Assessment was 

completed as indicated on the IC Data Form. A confidentiality statement with a legal citation that 

authorizes the pledge of confidentiality should be provided.2If 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 makes no pledge 

about the confidentially of the data.

The Department requirements do not cover any confidential information.

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 Department is not requesting any sensitive data.

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

 Indicate the number of respondents by affected public type (federal government, 

individuals or households, private sector – businesses or other for-profit, private 

sector – not-for-profit institutions, farms, state, local or tribal governments), 

 

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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)
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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

RIN Number: XXXX-XXXX (if applicable)

frequency of response, annual hour burden, and an explanation of how the burden was 

estimated, including identification of burden type: recordkeeping, reporting or third 

party disclosure. All narrative should be included in item 12. 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 the ROCIS IC Burden 

Analysis Table. (The table should at minimum include Respondent types, IC activity, 

Respondent and Responses, Hours/Response, and Total Hours)

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

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

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

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

14.

The 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

Institutions:

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

2,067 2,067 3,088

Revised Burden Inventory:

# of Respondents # of Responses # of Burden Hours

 134 134 214

The Department estimates that the cost to the institutional respondents will be:

# of Est. $/ Est. $ of 

Respondents Hour Burden

Institutions:

Proprietary (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
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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

RIN Number: XXXX-XXXX (if applicable)

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

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

in Items 12 and 14.)

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

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

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

costs associated with generating, maintaining, and disclosing or providing the 

information. 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. 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 : 

There are no system start up costs or additional cost burdens associated with this 

collection other than those listed in item 12.

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 cost to the government associated with these proposed regulations.
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ICRAS Tracking and OMB Number: (1460.04) 1845-0096 v2 Revised: 12/3/2012

RIN Number: XXXX-XXXX (if applicable)

15. Explain the reasons for any 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 changes result from a deliberate action that materially changes a 

collection of information and generally are result of new statute or an agency action (e.g., 

changing a form, revising regulations, redefining the respondent universe, etc.). Burden changes 

should be disaggregated by type of change (i.e., adjustment, program change due to new statute, 

and/or program change due to agency discretion), type of collection (new, revision, extension, 

reinstatement with change, reinstatement without change) and include totals for changes in 

burden hours, responses and costs (if applicable).

This request is to extend the current information collection. There has been no revision 

to the regulations published on October 29, 2009 requiring reporting of the specific 90/10 

revenue. The change to the burden hours is being considered an adjustment 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 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.

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 any exceptions to the “Certification for Paperwork 

Reduction Act Submissions” of OMB Form 83-1.