1

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12 **SUPPORTING STATEMENT**

**FOR PAPERWORK REDUCTION ACT SUBMISSION FINANCIAL DISCLOSURE FOR REASONABLE AND AFFORDABLE** 

**REHABILITATION PAYMENTS FORM 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 for a new information collection for a new form used to obtain standardized financial information from borrowers with de faulted FFEL or DLprogram loans. This information would be used b y either the Secretary or a guaranty agency to make a determination of a reasonable and affordable monthly loan pay ment which if made according to the agreed schedule would afford defaulted borrowers an opportunity for loan rehabilitation. The proposed regulations would add new §§682.405(b)(1)(iii) and 685.211(f)(1)(i) requiring a guarant y agency and the Secretary , respectively , to base determinations of reasonable and affordable rehabilit ation pay ment amounts of defaulted loans on information provided on an OMB

- approved form, and, if requested, supporting documentation. Proposed §§682.405(b)(1)(iii)(A) and 685.211(f)(1)(i)(A) would require a guarant y agency and the Secretary to consider the borrower's, and if applicable, the spouse's current disposable income in determining a reasonable and affordable rehabilitation pay ment of default loans. Under proposed §§682.405(b)(1)(iii)(A) and 685.211(f)(1)(i)(A) spousal income would not be consid ered if the spouse does not contribute to the borrower’s household income. Proposed §§682.405(b)(1)(iii)(B) and 685.211(f)(1)(i)(B) would require a guarant y agency and the Secretary to consider the borrower’s family size, as defined in §682.215(a)(3) of the income

- based repay ment plan regulations, in determining the borrower’s rehabilitation pay ment amount of default loans.

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

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12 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 information provided on the proposed Financial Disclosure for Reasonable and Affordable Rehabilitation Pay ments form would be provided b y the borrower to the Direct Loan or FFEL loan holder (either the guaranty agency or the Department) for the purpose of determining the loan rehabilitation monthly repay ment amount. This would be a new form. 3. Describe whether, and to what extent, the collection of information involve s 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. While the proposed form would be downloadable from the Department’s Web site, once printed it would be completed by the borrower and spouse (if applicable), and submitted with copies of supporting documentation to the loan holder. 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. The current requirements are minimal and avoid duplication. There is no similar information available that can be used or modified for this purpose at this time. 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 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 special district with a population of less than 50,000. No small bus inesses 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. Absent this proposed data collection form, the loan holder would not have sufficient or accurate information required to calculate the loan rehabilitation monthly repay ment amount. 7. Explain any

special circumstances that would cause an information coll ection to be conducted in a manner:3

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12

 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 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 b y OMB;  that includes a pledge of c onfidentiality 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 fo r 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 pe rmitted by law. The collection of this information will continue to be conducted in a manner that is consistent with the guidelines in 5 CFR 1320.6. 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 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 form at (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 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. Th e proposed regulations were developed through the Negotiate d Rulemaking process where the public provided its input and in consultation with schools, and a variet y of professional associations and other interested parties
. The comment period for the burden associated with these proposed regulations will run concu rrently with the comment period for the proposed regulations. Although OMB has up to 60 day s to approve the IC R, it is recommended that the public comment on the ICR within the 30 day s of the regulations publication.4

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12 9. Explain any

decision to provide an y pa ym ent or gift to respondents, other than remuneration of contractors or grantees with meaningful justification
. No pay ments or gifts will be provided to the 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
. If there is no expectation of confidentiality , simply state that the Department make s no pledge about the confidentiall y of th e data. A Privacy

Act Notice is included on the Financial Disclosure for Reasonable and Affordable Rehabilitation Pay ments form that is being cleared in this information collection. In this notice, the borrower is informed of the statutory authorit y for collecting the information requested. Although disclosure of the information is voluntary , the borrower is informed that in order to be considered for the reasonable and affordable rehabilitation repay ment amount benefit the information must be provided. The information provided is used to verify the borrower’s identity , to determine the borrower’s eligibility

for the rehabilitation benefits and to permit the servicing of the loan(s) and to locate the borrower and collect on the loans. 11. Provide additi onal justification for an y 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 wh y t he agency considers the questio ns 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. Prov ide 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 s ector

– 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

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 Impl em enting 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 : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12

party 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 responde nts 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 inc lude 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 sh ould 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 wag e 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. Section 682.402

– Lo an Rehabilitation Agreement In calendar ye ar 2011, there were approximately 299,159 FFEL borrowers (192,029 borrowers whose FFEL Program loans are commerciall y held and 107,130 FFEL Program borrowers whose loans are held b y ED) that requested and received loan rehabilitation agreements of their default loans. We estimate that on average it would take a borrower 1.5 hours (90 minutes) to complete and submit the loan rehabilitation form. Under these proposed regulations, we estimate that burden will increase b y 448,739 hours (299,159 borrowers re questing loan rehabilitation multiplied by 1.5 hours per loan rehabilitation requests) under OMB Control Number 1845

- NEW 1
. Section 6 82.402
- New Burden : # of Respondents # of Responses Hours/Response Burden Hours 299,159 299,159 1
. 5 hrs 448,739 Section 6 85.211

– Miscellaneous Repay ment Provisions In calendar ye ar 2011, there were approximately 92,870 Direct Loan borrowers that requested and received loan rehabilitation agreements of their default loans. We estim ate that it would take a borrower on average 1.5 hours (90 minutes) to complete and submit the Financial Disclosure for Reasonable and Affordable Rehabilitation Payments form. Under these proposed regulations, we estimate that burden will increase by 139, 305 hours (92,870 borrowers requesting loan rehabilitation multiplied by 1.5 hours per loan rehabilitation request) under OMB Control Number 1845

- NEW1. Section 6 85.211
- New Burden :6

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12

# of Respondents # of Responses Hours/Response Burden Hours 92,870 92,870 1.5 hrs 139,305 Currently Approved Numbers: # of Respondents # of Responses Hours/Response Burden Hours 0 0 0 Total New Burden Numbers Requested :

392,029 392,029 588,044
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 ass ociated 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 rat e(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; an d 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 reasons for the variance. The cost of contracting out information collection services sho uld 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 part of customary and usual business or private practices. Also, these estimates sho uld 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 :7

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12 There are no capital/startup costs to respondents, nor are there any annual costs to respondents associated with operating or maintaining s ys tems 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, operational expens es (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 cos t to the federal government is minimal
. 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 b urden 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 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 totals for changes in burden hours , responses and cost s (if applicable)
. This is a new information collection request. The proposed regulations provide for a new form approved b y the Secretary to be used for the standardized collection of data used to determine the loan rehabilitation monthly repay ment amount . It is anticipated that approximately

392,029 borrowers will require 588,044 hours to complete the form an d gather and submit supporting documentation. 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analy

tical techniques that will be used. Provide the time schedule for th e entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions. The results of this collection of information will not be published. 17. If seeking approval to not displ ay 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 Certi fication of Paperwork Reduction Act. The Department is not requesting an y exceptions to the “Certification for Paperwork Reduction Act Submissions” of OMB Form 83

- 1.8

ICRAS Tracking and OMB Number : ( 1981.01 ) 1845
- NEW1 v .1 Revised: 6/27 / 201 3 RIN Number: 1840
- AD12