Section 685.301 – Maximum Length of a Loan Period
The proposed changes would eliminate the maximum 12-month loan period for annual loan limits in the Direct Loan program thus allowing institutions to certify a single loan for student in shorter non-term or nonstandard term programs or when the loan period is longer than 12 months. As a result, these changes will decrease burden for schools and lenders.
# of borrowers in the Direct Loan program in 2007-2008:
Loan Type # of loans
Subsidized 1,503,000
Unsubsidized 1,094,000
PLUS 242,000
Total 2,839,000
% of affected loans .10
# of affected loans 283,900
Amount of time to certify
and disburse loan X .5 hours (30 minutes)
Decrease in burden 141,950
Affected Entities:
burden hours X % affected = Total burden reduction
INSTITUTIONS: 141,950 .5 70,975
LENDERS: 141,950 .5 70,975 141,950
Respondents, Responses and Burden Hours:
# of Respondents # of Responses # Hrs/Response #Hrs
Burden
8,767 283,900 .5 = -141,950
| File Type | application/msword |
| File Title | SUPPORTING STATEMENT |
| Author | I.R.G. |
| Last Modified By | Sheila.Carey |
| File Modified | 2007-06-06 |
| File Created | 2007-06-06 |