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ICRAS Tracking and OMB Number: () 1845-0094 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 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.

Effective August 14, 2008, upon the loan holder’s receipt of a written request from a 

borrower and a copy of the borrower’s military orders, 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 William D. Ford Direct Loan (Direct Loan) Program loans made 

prior to the borrower entering active duty 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 only change being made is the reduction in the number of respondents 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.

 

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Please limit pasted text to no longer than 3 paragraphs.
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ICRAS Tracking and OMB Number: () 1845-0094 v2 Revised: 11/21/20012

RIN Number: XXXX-XXXX (if applicable)

The required documentation will be retained by the Department as Direct Loan holders to 

assure accountability of program participants for proper program administration and to 

justify the payment of funds by the federal government. Not collecting the information 

described would be likely to result in a loss of Federal benefits due borrowers who are on 

active military duty and compliance with the Servicemembers Civil Relief Act.

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 request from the borrower now may be submitted using the latest Public Service 

Deferment Request (OMB approved form number 1845-0011) with an attached copy of their 

military orders. 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 specifically why any similar information 

already available cannot be used or modified for use for the purposes described in Item 2 above.

Because the regulations specifically require a copy of the borrower’s military orders to 

confirm eligibility to participate in this program, there is no duplication as there is no other 

Department system 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 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.

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.

Recordkeeping requirements are imposed to 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 conducted 

in a manner:
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ICRAS Tracking and OMB Number: () 1845-0094 v2 Revised: 11/21/20012

RIN Number: XXXX-XXXX (if applicable)

 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.

This application is consistent with these guidelines.

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.

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 for this collection. The 60 day comment period for this 

collection package to solicit comments on the current burden assigned to this regulation 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 payment or gift to respondents, other than remuneration 

of contractors or grantees with meaningful justification.

No gifts or payments will be provided to respondents.
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ICRAS Tracking and OMB Number: () 1845-0094 v2 Revised: 11/21/20012

RIN Number: XXXX-XXXX (if applicable)

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.

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 authority 

for collecting the information requested. Although disclosure of the information 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 Family 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 your 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 borrower 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 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:

 

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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: () 1845-0094 v2 Revised: 11/21/20012

RIN Number: XXXX-XXXX (if applicable)

 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), 

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.

Using information from calendar year 2011 we estimate the number of active duty military

borrowers in the Direct Loan 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 minutes for 

processing the request by reviewing the deferment request and supporting data. This was 

done in error. Institutions would not be responsible for reviewing this deferment request. 

The Direct Loan 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 -180
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ICRAS Tracking and OMB Number: () 1845-0094 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 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 : 
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ICRAS Tracking and OMB Number: () 1845-0094 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 

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 additional cost to the Federal government as a result of these regulations.

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 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 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.

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 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-I.