Sections 674.19 & 674.50 Retention of Disbursement Records

Sections 674.19 and 674.50 – Retention of Disbursement Records Supporting MPNs

The proposed regulations would require that upon request that schools retain disbursement records for each loan made to a borrower on a MPN until all the loans on the MPN are satisfied. The proposed changes would also require an institution to submit disbursement records, upon request, for each loan assigned to the Department for the enforcement of the loan.

# of loans projected for 2007-2008:

Program Type # of loans X % of E-MPNs = # affected

by program

Perkins Loan Program 501,000 .15 75,150

Projected # of Perkins Loans assigned:

# affected 75,150

% assigned to ED X .0005

Projected # of Perkins assigned 38

to ED w/documentation

Amount of time to submit:

Electronic records .08 hours (5 minutes)

Copy and mail paper documents + .50 hours (30 minutes)

Total time per loan assigned .58 hours

Affected Entity:

# of assignments X hours of burden = total hours

increased burden

INSTITUTIONS: 38 .58 22

Respondents, Responses and Burden Hours:

# of Respondents # of Responses # Hrs/Response #Hrs

Burden

38 38 .58 = 22

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