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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

SUPPORTING STATEMENT

FOR PAPERWORK REDUCTION ACT SUBMISSION

Information Collection for Regulations Governing the Federal Perkins Loan Program

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.

This request is for the extension of the Office of Management and Budget (OMB) 

approval of the reporting and recordkeeping requirement contained in 34 CFR sections 

674.39, 674.41, 674.42, 674.43, 674.45, 674.47, 674.48, and 674.49 under the control 

number 1845-0023. The information collections in these regulations are necessary to 

determine Federal Perkins Loan Program borrower eligibility to receive program benefits 

and to prevent fraud and abuse of program funds. We are not making any changes to the 

language of these regulations. We are requesting an extension of the current collection 

with an increase in respondents and hours due to an increase in the number of loans in the 

portfolio.

Section 674.39 – Loan rehabilitation.

This section establishes that participating institutions are required to have a loan 

rehabilitation program for the purposes of rehabilitating defaulted loans and outlines the 

requirements of the rehabilitation program.

Section 674.41 – Due diligence – general requirements.

This section establishes that institutions are required to inform the borrower on a timely

basis and exercise due diligence in the collection of Perkins loans. Additionally, 

institutions are required to coordinate among the various campus administrative offices to 

share information as it relates to a borrower and the billing and collection process

Section 674.42 – Contact with the borrower.

This section establishes that institutions are required to provide borrowers with 

information about the repayment of the loan, a description of charges, an explanation of 

loan consolidation or other refinancing as well as other information about the amount of

the repayment, the frequency, and to whom the payments must be made. Generally, this 

information is provided to the borrowers as a part of the required exit interview process. 

 

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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

The institution is required to maintain information substantiating the institution’s 

compliance with these due diligence regulations.

Section 674.43 – Billing procedures.

This section establishes that institutions are required to notify borrowers about the 

amount of repayment due, to remind borrowers when their payment is overdue, and to 

demand payment of overdue amounts. 

Section 674.45 – Collection procedures.

This section establishes that borrowers who do not respond satisfactorily to demand 

notices for repayment of defaulted loans must be referred for intensive collection efforts. 

Those efforts include reporting defaults to a national credit bureau, either the use of 

institutional resources to collect of the use of a collection agency, and ultimately, 

litigation to resolve the debt. 

Section 674.47 – Costs chargeable to the Fund.

This section establishes detail about the billing costs, late charge costs, other collections 

costs, as well as write-offs and waivers of collection costs and the limitations of those 

costs that can be charged to the Perkins fund. 

Section 674.48 – Use of contractors to perform billing and collection activities.

This section establishes that institutions that use contractors to perform billing and 

collection activities retain all responsibility to comply with the Title IV program 

requirements and must insure that the third-party provider meets all the compliance 

requirements.

Section 674.49 – Bankruptcy of borrower.

This section establishes that institutions that receive notice that a borrower has filed a 

petition for relief in bankruptcy must follow the procedures in the regulations to avoid a 

discharge of the loan. The institution must assert any defense consistent with its status 

under applicable law to avoid discharge of the loan debt.

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 collected, recorded, and/or disclosed in 34 CFR 674.39, 674.41, 674.42, 

674.43, 674.45, 674.47, and 674.49 will be used by the institution, as necessary, to 

provide for the making and servicing of Perkins Loans. If the information was not 

collected, recorded and/or disclosed as specified in the sections, the processing and 

collection of Perkins Loans could be open to fraud and waste of the program funds.

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 
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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

decision of adopting this means of collection. Also describe any consideration given to using 

technology to reduce burden.

There is nothing in these regulations that prohibits the use of technology to perform the 

required functions. And we continue to review the regulations so that can maximize the 

use of available technology in the making and servicing of Perkins Loans.

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.

A review of the current procedures indicated that the requirements are minimal and avoid 

duplication. 

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.

The recordkeeping and reporting 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:

 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 
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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

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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.

The collection of this information is conducted in a manner that is consistent with 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 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 60 day comment period for this collection package to solicit comments on the 

current burden assigned to this regulation. The regulations were initially developed in 

consultation with the community. There is no change to the regulatory language.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration 

of contractors or grantees with meaningful justification.

No payments or gifts will be provided to the respondents that provide the information.

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 

 

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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: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

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 Federal Perkins Loan Promissory Note. In this 

notice, the borrower is informed of the statutory authority for collecting the information 

required. Although disclosure of the information is voluntary, the borrower is informed 

that in order to be considered for Perkins Loan Program funds, the information must be 

provided. The information provided is used to verify the borrower’s identity, to 

determine the borrower’s eligibility to receive a Perkins Loan Program loan and benefits, 

to permit the servicing of the borrower’s loan(s) and to locate the borrower and collect on 

the loan(s) if the loan(s) become delinquent or default. A listing of the persons and 

entities to which 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:

 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.
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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

Section 674.39 – Loan rehabilitation.

Participating institutions are required to have a loan rehabilitation program for the 

purposes of rehabilitating defaulted Perkins Loans.

Affected Parties:

Individuals 485,482 X .016666 hours = 8,091 hours

Institutions

 Public 557 X .45 hours = 251 hours

 Private 899 X .45 hours = 405 hours

 For-profit 131 X .45 hours = 59 hours

# of Respondents # of Responses # of Burden Hours

487,069 487,069 8,806

Section 674.41 – Due diligence – general requirements.

This section establishes that institutions are required to inform the borrower on a timely

basis and exercise due diligence in the collection of Perkins loans. Additionally, 

institutions are required to coordinate among the various campus administrative offices to 

share information as it relates to a borrower and the billing and collection process

Affected Parties:

Individuals 2,070,514 X .016666 hours = 34,507 hours

Institutions

 Public 557 X 1.42 hours = 791 hours

 Private 899 X 1.42 hours = 1,277 hours

 For-profit 131 X 1.42 hours = 186 hours

# of Respondents # of Responses # of Burden Hours

 2, 072,101 2, 072,101 36,761

Section 674.42 – Contact with the borrower.

This section establishes that institutions are required to provide borrowers with 

information about the repayment of the loan, a description of charges, an explanation of 

loan consolidation or other refinancing as well as other information about the amount of 

the repayment, the frequency, and to whom the payments must be made. Generally, this 

information is provided to the borrowers as a part of the required exit interview process. 

The institution is required to maintain information substantiating the institution’s 

compliance with these due diligence regulations.

Affected Parties:

Individuals 2,070,514 X .016666 hours = 34,507 hours

Institutions

 Public 557 X 1.42 hours = 791 hours

 Private 899 X 1.42 hours = 1,277 hours

 For-profit 131 X 1.42 hours = 186 hours
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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

# of Respondents # of Responses # of Burden Hours

 2, 072,101 2, 072,101 36,761

Section 674.43 – Billing procedures.

This section establishes that institutions are required to notify borrowers about the 

amount of repayment due, to remind borrowers when their payment is overdue, and to 

demand payment of overdue amounts. 

Affected Parties:

Individuals 2,555,996 X .016666 hours = 42,598 hours 

Institutions

 Public 557 X 1.42 hours = 791 hours

 Private 899 X 1.42 hours = 1,277 hours

 For-profit 131 X 1.42 hours = 186 hours

# of Respondents # of Responses # of Burden Hours

 2,557,583 2,557,583 44,852

Section 674.45 – Collection procedures.

This section establishes that borrowers who do not respond satisfactorily to demand 

notices for repayment of defaulted loans must be referred for intensive collection efforts. 

Those efforts include reporting defaults to a national credit bureau, either the use of 

institutional resources to collect of the use of a collection agency, and ultimately, 

litigation to resolve the debt. 

Affected Parties:

Individuals 242,741 X .016666 hours = 4,046 hours

Institutions

 Public 557 X .75 hours = 418 hours

 Private 899 X .75 hours = 674 hours

 For-profit 131 X .75 hours = 98 hours

# of Respondents # of Responses # of Burden Hours

 244,328 244,328 5,236

Section 674.47 – Costs chargeable to the Fund.

This section establishes detail about the billing costs, late charge costs, other collections 

costs, as well as write-offs and waivers of collection costs and the limitations of those 

costs that can be charged to the Perkins fund. 

Affected Parties:

Individuals 242,741 X .016666 hours = 4,046 hours

Institutions

 Public 557 X .83 hours = 462 hours

 Private 899 X .83 hours = 746 hours

 For-profit 131 X .83 hours = 109 hours
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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

RIN Number: XXXX-XXXX (if applicable)

# of Respondents # of Responses # of Burden Hours

244,328 244,328 5,363

Section 674.48 – Use of contractors to perform billing and collection activities.

This section establishes that institutions that use contractors to perform billing and 

collection activities retain all responsibility to comply with the Title IV program 

requirements and must insure that the third-party provider meets all the compliance 

requirements.

Affected Parties:

Institutions

 Public 557 X .92 hours = 512 hours

 Private 899 X .92 hours = 827 hours

 For-profit 131 X .92 hours = 121 hours

# of Respondents # of Responses # of Burden Hours

1,587 1,587 1,460

Section 674.49 – Bankruptcy of borrower.

This section establishes that institutions that receive notice that a borrower has filed a 

petition for relief in bankruptcy must follow the procedures in the regulations to avoid a 

discharge of the loan. The institution must assert any defense consistent with its status 

under applicable law to avoid discharge of the loan debt.

Affected Parties:

Institutions

 Public 557 X .92 hours = 512 hours

 Private 899 X .92 hours = 827 hours

 For-profit 131 X .92 hours = 121 hours

# of Respondents # of Responses # of Burden Hours

1,587 1,587 1,460

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 
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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 : 

There are no start-up costs associated with these regulations.

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 are no additional costs 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).

The Department is requesting an extension of this information collection. The 

regulations requiring this collection remain in place without change. There is an increase 

in hours to account for an increase in the size of the Federal Perkins Loan portfolio.
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ICRAS Tracking and OMB Number: (1404) 1845-0023 v6 Revised: 02/07/2013

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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 the OMB Form 83-I.