1

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 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 to extend the information collection for the requirements that are contained in the Student Assistance General Provisions regulations

– Subpart K

– Cash Management §668.164

– Disbursing funds. Institutions that participate in the Federal Pell Grant program are required to provide certain Federal Pell Grant eligible students with Federal Pell Grant funds to obtain or purchase their books and supplies when those students establish eligibility as provided in this regulation. The r egulations require institutions to provide a way for a Federal Pell Grant eligible student to obtain or purchase, b y the seventh day of a payment per iod, the books and supplies required for the pay ment period when certain conditions are met. If, 10 day s before the beginning of the pay ment period the institution could disburse Title IV, Higher Education Act of 1965, as amended (HEA) program funds for which the student was eligible, and if disbursed a credit balance would result, the institution is required to provide to the student the lesser of the presumed credit balance or the amount needed b y the student for books and supplies, as determined by the institution. 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. Section 668.164 (i) contains information collection requirements approved by the O ffice of M anagement and B u dget (OMB) . Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), the Department of Education is providing a link to th e section above to the OMB for its review. **Section 668.164**

**– Disbursing funds.** 

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

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable) The regulations require institutions to prov ide a way for a Federal Pell Grant eligible student to obtain or purchase, b y the seventh day of a payment period, the books and supplies required for the pay ment period when certain conditions are met. If, 10 day s before the beginning of the pay ment peri od the institution could disburse Title IV, HEA program funds for which the student was eligible, and if disbursed, a credit balance would result, the institution is required to provide to the student the lesser of the presumed credit balance or the amount needed b y the student for books and supplies, as determined b y the institution. 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. T here are no legal or technical obstacles to the use of technology in this information collection activity
. Itis anticipated that many institutions will provide this information to eligible students through electronic means. 4. Describe efforts to identify duplication. Sho w 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. This information is not duplicated on an y other information collection. 5. If the collection of information impac ts small businesses or other small entities, describe an y 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, township, school district, or spec ial 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. The regulation requires the institution to make a determination earl y in the student’s pay ment period about the amounts of presumed credit balances in order to provide a way for these students to obtain or purchase their books and supplies within 7 day s of the start of the pay ment period. If a determination is not made, a student who would have received sufficient Title IV, HEA program funds in excess of tuition and fees that could be used for books and supplies, may not receive those funds timely or be p rovided a way for the Pell Grant eligible student to obtain or purchase the required books and supplies by the seventh day

of the pay

ment period.3

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable)
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 pr oduce 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

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. This application is consis tent with all of the guidelines in 5 CFR 1320.5(d)(2). 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. 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 w ith 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 th at may preclude consultation in a specific situation. These circumstances should be explained. The Department of Education ( Department ) developed these regulations using negotiated rulemaking committees with members of the community during 2010. There has been no change to the underl yi ng statute or regulations affected. There will be a 60

- day and 30

- day notice Federal Register seeking public comment on the burden calculations
.4

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable) 9. Explain an y 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 o f 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 th e Privacy Act, the Privacy

Act statement is deemed sufficient with respect to confidentiality . I f there is no expectation of confidentiality , simply state that the Department make s no pledge about the confidentiall y of the data. There is no assurance of c onfidentiality 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 c onsidered private. The justification should include the reasons wh y t he 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. There are no questions of a sensitive nature in this application. 12. Provide estimates of the hour burden of the collection of information. The statement should:

 Indicate the number of respondents by affected publi c 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 disclosure. All narrative should be included in item 12. Unless directed to do so, agencies should not conduct special survey s to obtain info rmation 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 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.

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

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable)

 If this request for approval covers more than one form, provide separate hour bur den 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 annualize d 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. Ins tead, this cost should be included in Item 14. **Section 668.164**

**– Disbursing funds.**  Section 668.164(i) : Under the final regulations, if 10 day s prior to the beginning of the pay ment period, the institution could disburse Title IV, HEA program funds for which a student is eligible and if the presumed disbursed amount of Title IV, HEA funds exceeds the cost of tuition and fees, thus producing a presumed credit balance, the institution must provide a way

for the Federal Pell Grant eligible student to obtain or purchase his books and supplies for the payment period within 7 days of the beginning of the payment period. The amount the institution must provide is the lesser of either the presumed credit balance or the amount needed b y the student for books and supplies, as determined by the institution. We estimate that of the 9,026,805 Federal Pell Grant recipients in the 20 12
- 20 13 award ye ar, approximately

30% or 2,708,041 would have or did have a Title IV, HEA credit balance. Of that number, we estimate that 25% ( 2,708,041 X .25 = 677,010 ) of the Federal Pell Grant recipients will have a presumed credit balance 10 day s before the beginning of the pay

ment period. Therefore, we estimate that institution will need to provide a way

for 677,010 Federal Pell Gran t recipients to obtain or purchase their books and supplies within 7 days of the beginning of the pay ment period. We expect that institutions have completed the initial programming changes that would have been required to determine the number of student s affected b y these regulations. Therefore, w e estimate that each institution will spend 1 hour validating current programming and making an y changes to identify these Federal Pell Grant recipients with presumed credit balances , a decrease of 2 hours from the previous information collection filing . Once those recipients are identified, we estimate an additional .08 hours of burden to contact the student and make them aware of the way the institution provides for them to obtain or purchase their books and supplies within the first 7 day s of the pay ment period. AFFECTED ENTITES and BURDEN: PROPRI ETARY INSTITUTIONS: We estimate that 2,199 proprietary institutions participating in the Federal Pell Grant program will, on average, spend 1 hour to validate an d make programming changes needed to identify

Federal Pell Grant students with a presumed credit balance. Therefore,6

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable) the total burden will be 2,199 hours , a decrease of 3,990 hours from the previous burden collection
. Additionally , these 2,199 institutio ns will be required to notify an estimated 139,711 Federal Pell Grant eligible students with a presumed credit balance at an average of .08 hours (5 minutes) or 11,177 hours of additional burden. This is a decrease in burden of 3,236 hours from the previo us burden collection. PRIVATE NON
- PROFIT INSTITUTIONS: We estimate that 1,743 private non

- profit institutions participating in the Federal Pell Grant program will, on average, spend 1 hour to validate and make programming changes needed to identify

Federa l Pell Grant students with a presumed credit balance. Therefore, the total burden will be 1,743 hours, a decrease of 2,826 hours from the previous burden collection. Additionally , these 1,743 institutions will be required to notify an estimated 88,288 Fe deral Pell Grant eligible students with a presumed credit balance at an average of .08 hours (5 minutes) or 7,063 hours of additional burden. This is a decrease in burden of 3,557 hours from the previous burden collection. PUBLIC INSTITUTIONS: We estimat e that 1,896 public institutions participating in the Federal Pell Grant program will, on average, spend 1 hour to validate and make programming changes needed to identify Federal Pell Grant students with a presumed credit balance. Therefore, the total burden will be 1,896 hours, a decrease of 3,753 hours from the previous burden collection. Additionally , these 1,896 institutions will be required to notify an estimated 449,011 Federal Pell Grant eligible students with a presumed credit balance at an avera ge of .08 hours (5 minutes) or 35,921 hours of additional burden. This is an increase in burden of 23,025 hours from the previous burden collection. # of Responses: # of Respondents: Hrs/Response: # of Burden Hours:
PROPRI ETARY INSTITUTIONS: Analy sis and programming

-

2, 199 2, 199 X 1hr 2,199 Id entifying and notification

–

1 39 , 711 * X .08 hrs 1 1 , 177 PRIVATE NON
- PROFIT INSTITUTIONS: Analy sis and programming

-

1, 743 1, 743 X 1hr 1,743 Id entifying and notification

–

88,288 * X .08 hrs 7 , 0637

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable)
PUBLIC INSTITUTIONS: Analy sis and programming

-

1,8 96 1,8 96 X 1hr 1 , 896 Id entifying and notification

–

449,011 * X .08hrs 35 , 921 Total : 682,848 5,838 59,999 Previous t otals :

479,595 479,595 54,336 Net change from previous burden calculation:

203,253
- 473,757 5,663
*

- To correct double counting of the responsible respondents , the institutions ar e onl y counted once while there are two distinct process es for them to perform for this regulatory requirement. 13. Provide an estimate of the total annual cost burden to respondents or record keepers resulting from the collection of information. (Do no t 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. Include descriptions of methods used to estimate major cost factors including s ys tem an d 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 purcha sing 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 reason s 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 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 p art of customary and8

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable) 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 startup costs. 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. T here are no additional costs to the Federal government as a result of the final 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 changes result from a deliberate action that materiall y changes a collection of information and generally are result o f 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)
. This information collection filing is an adjustment to the current burden assessment. Since the initial filing of this information collection package in 2010 there has been no change to the statute or regulations that created this burden calculation. The increase in the burden hours identified here is due to an increase in the number of Pell eligible students and an increase in the number of Title IV certified and eligible institutions that participate in the Pell program. Current Proposed Difference Annual Number of Responses 479 , 595 68 2, 84 8 203,253 Annual Hour Burden 54,336 59,999 5,663 Annual Cost Burden 0 0 0 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex an aly

tical 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.9

ICRAS Tracking and OMB Number: ( 1470 ) 1845
- 0106 Revised: 7 / 18 / 2013 RIN Number: XXXX

- XXXX (if applicable) This information will not be publi shed.
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. ED is not seeking this approval. The OMB expiration dates will be display ed in the Federal Register once approved. 18. Explain each exception to the certification statement identified in the Certification of Paperwork Reduction Act. There are no exceptions.