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OMB Number: 1845
- 0132 6/ 15 /2015 RIN Number: XXXX

- XXXX (if applicable)

**SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION**  **Information on Borrower Defense to Repayment Loan Discharge**  **Claims 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 is a request to for an extension of the emergency clearance that was granted on this collection on June 5, 2015 to facilitate the continued collection of information from borrowers who believe they have cause to invoke the borrower defenses against repay ment of a student loan as noted in regulation. The regulations for borrower defenses are specified in 34 CFR 685.206(c) . The regulation states , in part, “(c)(1) [i] n any proceeding to collect on a Direct Loan, the borrower may asse rt as a defense against repay ment, an act or omission of the school attended by the student that would give rise to a cause of action against the school under applicable State law.” Prior to 2015, the borrower defense identified above was rarel y asserte d by any borrowers and no specific methods of collecting information was defined or found necessary . T o respond to and protect harmed borrowers , the Department seeks to continue to provide assistance to allow :

 Student borrowers who attended the Heald College programs that the Department has found made mis representations to have their loans discharged if they complete the attached attestation. These borrowers need not prove that Heald College’s actions violated State law as the Department’s findings show a State law violation. The Department continues to estimate that there are potentially 50,000 borrowers in this category
.
 The information process that was established to notify other potentially

eligible borrowers of an interim process for accepting borrower defense claims . Thus, while the Department continues to develop this process, it will post on its website the attached language , which will direct borrowers who choo se not to wait for development of the

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

OMB Number: 1845
- 0132 6/ 15 /2015 RIN Number: XXXX

- XXXX (if applicable) review process, to send their claims to the address provided and to include a short list of information in support of their claim
. The Department continues to estimates that there are potentiall y 100,000 borrowers who may exercise this defense. Itis important to note that borrowers from other schools could also submit borrower defense claims if they believe that their school has engaged in a State law violation related to their education that has harmed them. 2. In dicate 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 utilize the info rmation provided by the borrower to confirm eligibility for the borrower defense against repayment. The information will be provided through a paper request with a borrower signature and attachments evidencing enrollment in a Heald College , as well as the information provided by non - Heald College borrowers who can provide evidence that the ir school has engaged in a State law violation related to their education that has harmed them. 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 mean s of collection. Also describe any consideration given to using technology

to reduce burden. The collection of information can be submitted to U.S. Department of Education, P.O. Box 194 407, San Francisco, CA 94119, or FSAOperations@ed.gov
. 4. Describe efforts to identify duplication. Show specificall y wh y an y similar information already available cannot be used or modified for use for the purposes described in Item 2 above. The information requested of th e borrower is needed for processing the borrower defense c laim r equest
. While borrower and loan information is held by the Department , there is no other mechanism for the Department to investigate or appl y the discharge except for the borrower to make the voluntary request . This request must be initiated by the borrower. 5. If the collection 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 n ot 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. This information collection does not impact an y s mall businesses or other small entities.3

OMB Number: 1845
- 0132 6/ 15 /2015 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 the Department did not collect the information on either the specific form or through the website , we would not have the information needed to apply the discharge and could not provide borrowers with allowable recourse to loan repay ment
. 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 i n 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 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 ap proved 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 mpe des 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 info rmation’s confidentiality to the extent permitted by law. This application is consistent 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 r eceived 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 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.4

OMB Number: 1845
- 0132 6/ 15 /2015 RIN Number: XXXX

- XXXX (if applicable)
This is the request for an extension of the current clearance of the process for gathering information from Heald College borrowers to submit a borrower defense against repay ment claim and the gathering of information from an y federal student loan borrower who believes they have me t the circumstances under the borrow er defense against repayment claim allowed b y regulation. The Department is requesting a 60

- day and 30

- day

comment period for this extension request. This is the 60

- day comment period. 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, regulat ion, 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 Impact Assessment was co mpleted 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 w ith 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. A Privacy

Act statement is included based on the Common Services for Borrowers Sy stem of Records Notice, 18

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- 16, revised in the Federal Register Volume 79, Number 177, September 12, 2014
. 11. Provide additional justification for an y questions of a sensitive nature, such as sexual behavio r 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. There are no questions of a sensitive nature in this collection. 12. Provide estimates of the hour burden of the collection of information. Th e statement should:

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

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- 22

– OMB Guidance for Im

plementing the Privacy Provisions of the E

- Government Act of 2002, OMB M

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- 15

– Safeguarding Personally Identifiable Information, OM : 6
- 104

– Privacy Act of 1974 (Collection, Use and Protection of Personally Identifiable Information)5

OMB Number: 1845
- 0132 6/ 15 /2015 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 gov ernments), 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 dire cted 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 is desirable. If the hour burden on respondents is expected to va ry 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 at minimum include Respondent types, IC activity , Responde nt 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 outsid e parties for information collection activities should not be included here. Instead, this cost should be included in Item 14. The Department continues to estimat e an average of 60 minutes (1 hour) per respondent to complete the Heald College borrower attestation/ application for borrower defense to repay ment loan discharge request. This time includes reviewing the instructions for completion of the attestation/application, locating and providing the required evidence of enrollment , and submission to th e Department
.

Respondents Responses Burden Hours Application 5 0,000 5 0,000 x 1 hour 50,000 Totals 5 0,000 5 0,000 50,00 0 Additionally , the Department continues to estimat e an average of 60 minutes (1 hour) per responde nt to respond to the minimum requested items identified on the studentloan.ed.gov website for borrowers wishing to assert their claim to the borrower defense against repay ment loan discharge. This time includes reviewing the instructions needed for filing a claim, locating and providing the required evidence of enrollment and State law violation and other information , and submission to the Department.

Respondents Responses Burden Hours Application 100,000 100,000 x 1 hour 100,000 Totals 100 ,000 100,000 100,0006

OMB Number: 1845
- 0132 6/ 15 /2015 RIN Number: XXXX

- XXXX (if applicable) NEW COLLECTION TOTAL

Respondents Responses Burden Hours Individuals 150,000 150,000 150,000 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 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 coll ecting 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 widel y, agencies should present ranges of co st 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 anal ys is associated with the rulemaking containing the information collection, as appropriate.
 Generally , estimates should not include pur chases 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 start

- up costs for any respondent. 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.7

OMB Number: 1845
- 0132 6/ 15 /2015 RIN Number: XXXX

- XXXX (if applicable) To begin this new process, the Department will be hiring additional personnel to review the initial applications and refine the intake process. We anticipate hiring additional staff for a total annual cost of approximat ely $ 3.6 million
. 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 or ganic 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 agency action (e.g., changing a form, revising regulati ons, 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, re instatement with change, reinstatement without change) and include totals for changes in burden hours , responses and cost s (if applicable)
. This is request for an extension of the currentl y approved information collection. There is no change to statutory

or regulatory

requirements. We estimate a total of 1 5 0,000 responses , resulting in a total of 1 50,0 00 new burden hours f or 150,000 borrowers
. This burden continues to be necessary to ensure Heald College borrowers who wish to invoke the borrower defense against repay ment of federal student loans can do so in a uniform and informed manner . It will also allow for the uniform and directed collection of minimum borrower defense information from other federal student loan borrowers who believe they can provide evidence of such a claim for repay ment relief. 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analy

ti cal 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. This 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. The OMB control number and expiration dates will be display ed on any

form and website. 18. Explain each exception to the certification statement identified in the Certification of Paperwork Reduction Act. There are no exceptions to the certification statement.