1

ICRAS Tracking and OMB Number: () 1845
- 009 4 v2 Revised: 11 /21 /20012 RIN Number: XXXX

- XXXX (if applicable)

**SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION**  **William D. Ford Direct Loan Program Regulations**

**– Servicemembers Civil Relief Act**  **(SCRA) A. Justification**  1. Explain the circumstances that make the collection of information necessary . Identify any legal or administrative requirements that necessitate the c ollection. 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 applicable. Effective August 14, 2008, upon the loan holder’s receipt of a written request from a borrower and a cop y of the borrower’s military order s, the regulations at 34 CFR 685 .202 provide that the maximum interest rate (as defined in 50 U.S.C. 527, App. Section 207 (d)) that may be charged on Wi lliam D. Ford Direct Loan ( Direct Loan ) Program loans made prior to the borrower entering active dut y status is six percent while the borrower is on active duty status. This request is for an extension of the approved recordkeeping requirements contained in the regulations related to the administrative requirements of the Direct Loan Program. There are no changes to the currently approved recordkeeping requirements of the Direct Loan Program. The onl y change being made is the reduction in the number of r espondents and the corresponding burden hours due to an error in calculating burden on institutions when they would not be required to review the deferment request. The Direct Loan Program is under the authority

of the Secretary

of Education who does not calculate burden on himself. The information collection requirements in these regulations are necessary to reduce administrative burden for program participants, determine eligibility to receive program benefits and to prevent fraud and abuse of program funds protecting taxpayers’ interest. 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.

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

ICRAS Tracking and OMB Number: () 1845
- 009 4 v2 Revised: 11 /21 /20012 RIN Number: XXXX

- XXXX (if applicable) The required documentation will be retained b y the Department as D irect L oan holders to assure accountability

of program participants for proper program administration and to justify the pay ment of funds by

the federal government. Not collecting the infor mation described would be likely to result in a loss of Federal benefits due borrowers who are on active military

dut y and compliance with the Servicemembers Civil Relief Act. 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. The request from the borrower now may be submitted using the latest Public Service Deferment Request (OMB approved form number 1845

- 0011) with an attached cop y of their military order s. As the form requires a wet signature and an attachment, there is no electronic transmission of the form available at this time. The loan holders may convert the information to electronic copies. 4. Describe efforts to identify duplication. Show spe cificall 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. Because the regulations specificall y require a cop y of the borrower’s military orders to confirm eligibility

to particip ate in this program, there is no duplication as there is no other Department sy stem that would hold this information. 5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden. A s mall 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 op erated 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 businesses are impacted b y this 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. Recordkeeping requirements are imposed t o assure accountability of program participants for proper program administration and less frequent collection could impair accountability of program participants. 7. Explain any

special circumstances that would cause an information collection to be condu cted in a manner:3

ICRAS Tracking and OMB Number: () 1845
- 009 4 v2 Revised: 11 /21 /20012 RIN Number: XXXX

- XXXX (if applicable)

 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 confidentiality that is no t 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 app lication is consistent with these guidelines. 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 prec lude consultation in a specific situation. These circumstances should be explained. This is the 30 day

comment period for this collection. Th e 60 day comment period for this collection package to solicit comments on the current burden assigned to this r egulation was published as Federal Register Notice, Vol. 77, page 58818, on September 24, 2012
. No comments were received during that 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
. No gifts or pay

ments will be provided to respondents.4

ICRAS Tracking and OMB Number: () 1845
- 009 4 v2 Revised: 11 /21 /20012 RIN Number: XXXX

- XXXX (if applicable) 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 th e 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 confidentia lity . 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 Notice is included on the Public Service Deferment Request form (OMB approved form 1845

- 0011). In this notice, the borrower is informed of the statutory authorit y for collecting the information requested. Although disclosure of the informat ion is voluntary , the borrower is informed that in order to be considered for loan program benefit, the information must be provided. The authorities for collecting the requested information from and about the borrower are §421 et seq. and §451 et seq. of the Higher Education Act of 1965, as amended (20 U.S.C. 1071 et seq. and 20 U.S.C. 1087a et seq. ) and the authorities for collecting and using the borrower’s Social Security Number (SSN) are §§428B(f) and 484(a)(4) of the HEA (20 U.S.C. 1078

- 2(f) and 1091 (a)(4)) and 31 U.S.C. 7701(b). Participating in the Federal Famil y Education Loan (FFEL) Program or the William D. Ford Federal Direct Loan (Direct Loan) Program and giving the Department the SSN information are voluntary , but the borrower must provide the requested information, including y our SSN, to participate. The information is used to verify the borrower’s identity , to determine the borrower’s eligibility to receive the benefit, to permit the servicing of the borrower’s loan(s), and to locate the b orrower and collect on the loan upon the expiration of the deferment period. A listing of the persons and entities with whom the information may be disclosed and for what purposes the information may be disclosed is also included. 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 considered private. The justification should include the reasons wh y the agency considers the questions ne cessary , 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 e stimates of the hour burden of the collection of information. The 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

- 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: () 1845
- 009 4 v2 Revised: 11 /21 /20012 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 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 discl osure. 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 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 b urden 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 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. Using information from calendar year 2011 we estimate the number of active duty military borrowers in the D irect L oan program requesting the maximum interest rate of 6 percent available to them under the Servicemembers Civil Relief Act (SCRA) was 2723 . We estimate that it will take each borrower 15 minutes to submit his or her request for protection under the SCRA. # of Respondents # of Responses # Hours of Burden Borrowers 2,723 2,273 x .25 hrs 681 hours Previously

we estimated that institutions would require approximately five minut es for processing the request b y reviewing the deferment request and supporting data. This was done in error. Institutions would not be responsible for reviewing this deferment request. The D irect L oan program is under the authority of the Secretary

of Education and the Secretary does not calculate burden on himself. We are therefore removing 2,250 respondents and 180 hours from the current burden. Respondents, Responses and Burden Hours: # of Respondents # of Responses # Hours of Burden Current Inventory : 4,500 4,500 743 Minus Incorrectly

Ascribed Burden : - 2,250
- 2,250
- 1806

ICRAS Tracking and OMB Number: () 1845
- 009 4 v2 Revised: 11 /21 /20012 RIN Number: XXXX

- XXXX (if applicable) Corrected Inventory : 2,250 2,250 563 Revised Inventory : 2,723 2,723 681 Change in Inventory based on corrected inventory : - 473
- 473
- 118 Change in Inventory

based on current inventory : - 1,777
- 1,777
- 62 Borrowers who wish to submit the Public Service Deferment request will require a first class postage stamp to mail the form and supporting document. The current cost for a first class postage stamp is .45 cents. The number of borrowers 2,743 x .45 cents equals $1,234.35. 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 collecting information such as purchasing compute rs 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 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 submissi on 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 custo mary 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 :7

ICRAS Tracking and OMB Number: () 1845
- 009 4 v2 Revised: 11 /21 /20012 RIN Number: XXXX

- XXXX (if applicable) There are no additional costs burdens associated with this collection other than those other than those listed in item 13. 14. Provide estimates of annualized cost to the Federal government. Also, provide a description o f 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 informatio n. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table. There is no additional cost to the Federal government as a result of these 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 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 yp e 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 request is to extend the current information collection. There has been no revision to the required recordkeeping to assure accurate application of the Servicemembers Civil Relief Act interest rate calculation. The changes to the burden hour estimates are a result of an increase in the number of servicemembers who have requested relief under this regulation. 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 the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions. The results of the collection of 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 D epartment 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 Ac t Submissions” of OMB Form 83

- I.