ICRAS 2014 1845-NEW2 – Affected Public – Private Institutions 2/241/2014

The Secretary proposes to amend the Student Assistance General Provisions by adding Subpart 

Q to 34 CFR Part 668, to establish measures for determining whether certain postsecondary

educational programs lead to gainful employment in recognized occupations, and the conditions 

under which these educational programs remain eligible for student financial assistance 

programs authorized under Title IV of the Higher Education Act of 1965, as amended (HEA). 

This will be a new collection and includes proposed §668.406 – Alternative earnings appeals for 

debt to earnings (D/E) rates.

Section 668.406(b) –Survey requirements.

The proposed regulations would provide an institution the opportunity to make an alternate 

earnings appeal under §668.406(b). The appeal would only be available to challenge final D/E 

rates that would put the program in jeopardy of a loss of eligibility in the succeeding award year.

We estimate that private non-profit institutions would have 12 gainful employment programs in 

the zone and that 34 programs would be failing for a total of 46 programs. We expect that most 

institutions would determine that SSA data reflect accurately the earnings of students and would 

therefore not elect to conduct the survey. Accordingly, we estimate that for-profit institutions 

would submit alternate earnings appeals under the survey appeal option for 10 percent of those 

programs, which would equal 5 appeals annually. We estimate that conducting the survey, 

providing the institutional certification, and obtaining the examination-level attestation 

engagement report would total, on average. 100 hours of increased burden, therefore burden 

would increase 500 hours under OMB Control Number 1845-NEW2.

Section 668.406(c) –State sponsored data system requirements.

We estimate that there would be 34 failing GE programs at private non-profit institutions and 12 

programs in the zone, for a total of 46 programs. We expect that most institutions would 

determine that SSA data reflect accurately the earnings of students who completed a program 

and would therefore not elect to submit earnings data from a State-sponsored system. 

Accordingly, we estimate that in 10 percent of those cases, institutions would obtain earnings 

data from a State-sponsored system, resulting in 5 appeals. We estimate that, on average each 

appeal would take 20 hours, including execution of an agreement for data sharing and privacy

protection under FERPA between the institution and the State agency, preparing the list(s), 

submitting the list(s) to the appropriate State agency, reviewing the results, calculating the 

proposed revised D/E rates, and submitting those results to the Secretary. Therefore burden 

would increase by 100 hours under OMB Control Number 1845-NEW2.

Section 668.406(d) – Low borrowing rate requirements:

We estimate that 5 percent of the total 46 programs at private non-profit institutions (12 zone 

programs plus 34 failing programs) or 2 programs at for private non-profit institutions would 

submit a low borrowing rate appeal and that generally this would be an automated process, 

however, there would be some situations, probably at a small institution where the process could 

be a manual process and therefore we estimate the average amount of time to collect the data, 

compile and submit the low borrower rate appeal would on average be 5 hours per appeal. The 
ICRAS 2014 1845-NEW2 – Affected Public – Private Institutions 2/241/2014

estimated burden would be 10 hours (2 appeals times 5 hours per appeal) under OMB Control 

Number 1845-NEW2.

Section 668.406(e) – Alternate appeal procedures.

We estimated above that private non-profit institutions would have 5 alternative survey appeals 

annually, plus 5 State-sponsored data system appeals, and 2 low borrowing rate appeals for a 

total of 12 appeals. We estimate that completing and submitting a notice of intent to use survey

alternate earnings data, State data, or a low borrowing rate appeal increases burden, on average, 

by 0.25 hours per submission or 3 hours under OMB Control 1845-NEW2. 

TOTALS

Responses 24

Respondents 24

Burden Hours 613