Section 674.61 Loan Discharge for Death

Section 674.61 – Loan Discharge for Death

The proposed regulations would allow the use of an accurate and complete copy of a borrower’s death certificate, instead of only permitting the submission of the original or a certified copy of the certificate. While all respondents (survivors who submit death certificate information to obtain a Title IV loan death discharge), we estimate that 83.5% will take advantage of the provisions of this proposed regulation. Therefore, while there are 1,692 respondents and responses, 83.5% or 1,413 will potentially benefit by submitting a copy of the death certicate.

The # of death discharges for Title IV loans as of September 30, 2006 are as follows:

Program Type # of loans % by program

FFEL Program 55,148 .78

Direct Loan Program 14,199 .20

Perkins Loan Program 1,692 .02

Total # of Title IV Loan 71,039 1.00

Discharges for Death

Current Requirement:

Amount of time to contact the Office of Vital Statistics (or its equivalent) to obtain a certified copy of a death certificate = .25 hour (15 minutes).

Proposed Requirement:

Amount of time to copy and submit a copy of an original or certified copy of a death certificate = .17 hour (10 minutes).

.25 hour (15 minutes)

less .17 hour (10 minutes)

Burden reduction per record .08 hour (5 minutes)

Total burden reduction:

# of death discharges 71,039

amount of burden reduction X .08 hour (5 minutes)

Total burden hours reduced 5,683 hours

Total burden reduction by program:

Program type: % of discharges total hours of hours of

by program burden reduction reduction by

program

FFEL Program .78 5,683 4,433

Direct Loan Program .20 5,683 1,137

Perkins Loan Program .02 5,683 113

5,638

Affected Entities: % of entities hours of amount of burden reduction

impacted reduction by by affected entity

PERKINS program

SURVIVOR OF

BORROWER: .6 113 68

LOAN HOLDER: .4 113 45

113

Of the 1,692 Respondents and Responses, 83.5% are estimated to benefit from the proposed regulation (the other 16.5% we estimate will provide the original or certified copy of the death certificate).

Respondents, Responses and Burden Hours:

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

Burden

1692 1692 .835* .08 = - 113

2