83c

PAPERWORK REDUCTION ACT
CHANGE WORKSHEET
Agency/Subagency

OMB Control Number

U.S.
 Department
 of
 Education/Federal
 Student
 Aid

Agency form number(s)
Annual reporting and record
keeping hour burden
Number of respondent
Total annual responses
Percent of these responses
collected
electronically
Total annual hours
Difference
Explanation of difference

1845-­‐0014

Enter only items that
change

New Record

Current Record
N/A

N/A

660,000

660,000

660,000

660,000

6%

80%

217,800

110,220
107,580

Greater
 use
 of
 electronics,
 streamlining

of
 form,
 removal
 of
 income-­‐driven

repayment
 plans.

N/A

Program change
adjustment
Annual reporting and record
keeping cost burden (in
thousands of dollars)
Total annualized
0

0
capital/startup
costs
Total annual costs (O&M)
0
0
Total annualized cost
0
0
requested
Difference
0
Explanation of difference
0
Program change adjustment
0
Other change**
The
 collection
 currently
 approved
 under
 1845-­‐0014
 is
 the
 Repayment
 Plan
 Selection
 (RPS
 form)
 for
 the
 William
 D.
 Ford
 Federal
 Direct
 Loan

(Direct
 Loan)
 Program.

 Direct
 Loan
 borrowers
 use
 the
 RPS
 form
 to
 select
 an
 initial
 repayment
 plan
 before
 they
 enter
 repayment
 on
 their

loans,
 or
 to
 request
 a
 change
 from
 their
 current
 repayment
 plan
 to
 a
 different
 repayment
 plan.

Recently,
 the
 Department
 has
 undertaken
 to
 streamline
 and
 simplify
 the
 application
 process
 for
 all
 repayment
 plans,
 but
 in
 particular
 the

income-­‐driven
 repayment
 plans,
 which
 include
 the
 Income-­‐Based
 Repayment
 plan,
 the
 Income-­‐Contingent
 Repayment
 plan,
 and
 the
 newly

regulated
 Pay
 As
 You
 Earn
 repayment
 plan.

 When
 the
 Department
 set
 out
 to
 combine
 and
 streamline
 the
 application
 process
 for
 the

selection
 of
 income-­‐driven
 repayment
 plans,
 our
 intent
 was
 to
 remove
 as
 much
 language
 as
 possible
 from
 the
 Direct
 Loan
 Repayment
 Plan

Selection
 Form
 (1845-­‐0014)
 relating
 to
 those
 plans,
 and
 place
 it
 exclusively
 in
 1845-­‐0102.

 This
 was
 to
 ensure
 that
 borrowers
 would
 only

need
 to
 submit
 one
 form
 to
 request
 a
 repayment
 plan
 for
 all
 of
 their
 eligible
 loans.

 Indeed,
 when
 the
 Department
 submitted
 the

Department
 specifically
 called
 out
 that
 burden
 with
 1845-­‐0102
 was
 appearing
 to
 increase
 because
 it
 was
 "being
 combined
 with
 1845-­‐0014

to
 the
 extent
 that
 it
 contained
 information
 regarding"
 income-­‐driven
 plans.

 This
 information
 was
 also
 reflected
 in
 the
 Supporting
 Statement

that
 was
 made
 available
 to
 the
 public.

 Therefore,
 the
 Department
 specifically
 solicited
 public
 comment
 on
 our
 approach
 to
 1845-­‐0014.

 The

public
 has
 had
 the
 opportunity
 to
 comment
 on
 the
 proposal,
 no
 comments
 have
 been
 received
 to
 date,
 and
 no
 comments
 are
 expected.

The
 Department
 proposes
 to
 strip
 nearly
 all
 information
 out
 of
 1845-­‐0014
 relating
 to
 the
 income-­‐driven
 plans.

 Previously,
 more
 than
 one

page
 was
 devoted
 to
 the
 income-­‐driven
 plans,
 and
 that
 is
 no
 longer
 necessary
 information
 to
 the
 form.

 The
 only
 mention
 of
 the
 income-­‐
driven
 plans
 will
 be
 in
 passing,
 via
 a
 checkbox
 that
 will
 allow
 borrowers
 to
 indicate
 that
 they
 wish
 to
 repay
 their
 loans
 that
 are
 not
 eligible
 for

an
 income-­‐driven
 plan
 under
 another
 plan,
 which
 is
 a
 right
 available
 to
 borrowers
 under
 the
 Direct
 Loan
 regulations.

 The
 remaining
 changes

to
 1845-­‐0014
 that
 the
 Department
 proposes
 is
 to
 place
 information
 that
 was
 previously
 contained
 in
 a
 supplemental
 document
 that
 the

Department
 made
 available
 in
 conduction
 with
 1845-­‐0014
 in
 the
 form,
 itself.

 This
 supplemental
 document,
 called
 Repayment
 Plan
 Choices,

contained
 general
 information
 about
 the
 various
 repayment
 plans,
 and
 helped
 borrower
 engage
 in
 the
 cost-­‐benefit
 analysis
 that
 would
 help

them
 decide
 which
 repayment
 plan
 was
 best
 for
 them.

 This
 document
 is
 not
 a
 collection,
 and,
 therefore,
 was
 never
 subject
 to
 public

comment.

 However,
 the
 Department
 did
 solicit
 comment
 from
 stakeholders,
 such
 as
 loan
 servicers,
 loan
 holders,
 and
 Direct
 Loans
 schools

in
 creating
 the
 document.

 The
 general
 information
 about
 the
 plans
 is
 now
 contained
 in
 Section
 2
 of
 revised
 1845-­‐0014.

 Sample
 repayment

amounts
 are
 now
 contained
 in
 Section
 6
 of
 revised
 1845-­‐0014.
 The
 document
 called
 Repayment
 Plan
 Choices
 would
 be
 discontinued.

These
 changes
 do
 have
 an
 impact
 upon
 burden,
 though
 as
 a
 reduction
 in
 burden.

 Between
 the
 increase
 in
 the
 number
 of
 Direct
 Loan

borrowers,
 and
 the
 number
 of
 borrowers
 who
 selected
 a
 repayment
 plan
 that
 is
 separate
 from
 the
 default
 repayment
 plan,
 though
 the

income-­‐driven
 repayment
 plans
 have
 been
 stripped
 from
 this
 form,
 the
 Department
 estimate
 the
 total
 number
 of
 respondents
 will
 stay
 the

same.

 In
 addition,
 as
 the
 federal
 loan
 servicers’
 computer
 systems
 have
 become
 more
 advanced,
 an
 increasing
 number
 of
 Direct
 Loan

borrowers
 have
 been
 able
 to
 complete
 their
 request
 on
 the
 Web,
 which
 lessens
 the
 need
 to
 print
 and
 mail
 the
 form.

 Finally,
 through
 the

removal
 of
 the
 information
 related
 to
 the
 income-­‐driven
 repayment
 plans,
 the
 hours
 per
 response
 has
 decreased
 to
 .167
 hours
 (10
 minutes).

 This
 yield
 an
 overall
 reduction
 in
 burden
 associated
 with
 1845-­‐0014
 of
 nearly
 50%,
 from
 217,800
 to
 110,220.

Signature of Senior Official or
Date:
For OIRA Use
designee:

_______________________________
11/26/2012

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_______________________________
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**This form cannot be used to extend an expiration date
OMB 83-C