Section 682.406 and 682.409 – Certification of Electronic Signature on Title IV Loan Program Master Promissory Notes (MPNs) Assigned to the Department
The proposed regulations would require that upon request schools, lenders, and guarantors would submit an affidavit or certification regarding the creation and maintenance of electronic Master Promissory Notes (MPNs) or promissory notes including the authentication and signature process. Also, the records retention requirement for affected parties would increase from the current requirement of three years after the end of the award year to seven years after all the loans on the MPN are satisfied.
# of borrowers referred for litigation – 2006-2007:
Program Type # of loans X % of E-MPNs = # affected
by program
Perkins Loan Program 28 .15 4
FFEL Program 842 .85 716
Total # of Perkins and 870 1.00 720
FFEL Loans Referred for
Litigation
Burden associated with data collection:
Providing ED with a copy of
the affidavit or certification .5 hours (30 minutes)
The burden associated with the collection of the original data and its retention, exists under the current rules. There is no increase in burden to retain these loan records until 7 years after the loans are satisfied.
Total burden increase:
# loans referred for litigation 720
amount of burden reduction X .5 hours (30 minutes)
Total burden hour increase 360 hours
Affected Entity:
# of affected X % held X burden = burden
loans per affected per MPN increase
entity
FFEL HOLDERS 716 .9 .5 322
GUARANTORS 716 .1 .5 36
358
[NOTE: Remaining additional burden of 2 hours is attributable to the Institutions.]
Respondents, Responses and Burden Hours:
# of Respondents # of Responses # Hrs/Response #Hrs
Burden
716 716 .5 = 358
File Type | application/msword |
File Title | Section 682 |
Author | DoED User |
Last Modified By | DoED User |
File Modified | 2007-06-04 |
File Created | 2007-06-04 |