This collection is approved on an emergency basis and will be limited to only a 6 month approval. ED will be required to go through the full PRA process in order to use this collection past the 6 month emergency approval.
table that charts list comparision
Inventory as of this Action
Requested
Previously Approved
12/31/2013
6 Months From Approved
7,770,494
0
0
282,713
0
0
0
0
0
The Department is publishing interim final regulation implementing the changes to the Direct Loan Program made by MAP-21.
The manner in which the Department will be implementing the interim final regulations; specifically, 685.200(f), will require institutions to submit additional information to the COD System and NSLDS under the authority in 685.301(e) and 685.309(b), respectively. Therefore, the collection requirements associated with 685.301(e) and 685.309(b) will change as a result of this rulemaking. Although 685.301(e) and 685.309(b) are not modified by this rulemaking, the burden associated with each provision will ultimately change as a result of this rulemaking and the analysis of the burden associated with those provisions will accompany this rulemaking. Section 685.304 also contains information collection requirements.
The interim final regulation in 685.200(f) provides that a borrower is not eligible to receive an additional Direct Subsidized Loan if the sum of the borrowers subsidized usage periods equals or exceeds the borrowers maximum eligibility period. The interim final regulation also provides different rules for borrowers who are enrolled in teacher certification programs for which the institution awards no academic credential, preparatory coursework necessary for enrollment in an undergraduate program, and preparatory coursework necessary for enrollment in a graduate or professional program.
These data will allow the Department to calculate the borrowers maximum eligibility period, subsidized usage period, and remaining eligibility period as described in 685.200(f)(1)(ii)-(f)(1)(iv), determine whether the borrower is eligible to receive an additional Direct Subsidized Loan, and ensure that borrowers do not receive Direct Subsidized Loans if they are no longer eligible to receive a Direct Subsidized Loan under 685.200(f)(2).
The Department will determine whether the borrower is responsible for accruing interest on their previously received Direct Subsidized Loans. To ensure that the Department has the information to necessary to make that determination, institutions will be required to report additional information to NSLDS. For example, institutions will be required to report: the CIP code and the credential level for the program in which a borrower is enrolled; the length of the program in academic years, weeks, or months (consistent with current institutional reporting in the COD System); and a more detailed enrollment status of the borrower (e.g., full-time, three-quarter-time, half-time, or less-than-half-time).
These data will allow the Department to determine whether a borrower who is not eligible for additional Direct Subsidized Loans is responsible for accruing interest on his or her previously received Direct Subsidized Loans.
The regulations implement a new statutory requirement that significantly limits a borrowers eligibility for Direct Subsidized Loans and potentially results in the borrower becoming responsible for accruing interest on existing Direct Subsidized Loans. Under section 485(l) of the HEA, which requires that borrowers be provided with entrance and exit counseling on the provisions governing federal student aid, institutions will be required to revise the entrance and exit counseling provided to borrowers.
For entrance counseling, the added counseling requirements under 685.304 will require institutions to explain the new provisions to borrowers.
On July 6, 2012, the President signed the Moving Ahead for Progress in the 21st Century Act (MAP-21) into law. MAP-21 included a limitation on borrower eligibility for Direct Subsidized Loans for borrowers in the William D. Ford Federal Direct Loan (Direct Loan) Program. Specifically, a new borrower on or after July 1, 2013 is no longer eligible to receive Direct Subsidized Loans if the period during which the borrower has received such loans exceeds 150 percent of the published length of the borrowers educational program. Additionally, the borrower becomes responsible for accruing interest on any Direct Subsidized Loan made to the borrower on or after July 1, 2013 if he or she is enrolled after reaching this 150 percent limit.
Section 100302(b) of MAP-21 waives the negotiated rulemaking requirements in section 492 of the HEA (as well as the master calendar requirements in section 482 of the HEA) for regulations to implement the 150 percent limit on subsidized loan eligibility in the Direct Loan Program. Consequently, the negotiated rulemaking requirements in section 492 of the HEA do not apply to the interim final regulations and we will not subject them to negotiated rulemaking.
For the reasons outlined in the Departments justification to OMB for the waiver of the Administrative Procedure Acts requirements for notice-and-comment rulemaking, which was transmitted to OMB on February 22, 2013, the Department requests that OMB allow the Department to clear the collection associated with the interim final regulations using the emergency clearance procedures of the Paperwork Reduction Act of 1995, outlined in 42 U.S.C. 3507(j).
In addition to developing and issuing the interim final regulations, there are a number of other steps necessary for the Department to implement the changes to the Direct Loan Program for July 1, 2013, which make normal clearance of the collection impracticable. For example, we must alter the Department's financial aid systems to comply with the HEA.
Under current financial aid systems, schools would be unable to accurately monitor a borrowers eligibility for Direct Subsidized Loans under the 150 percent limit because the determination of maximum and remaining subsidized loan eligibility requires information about a borrowers attendance and receipt of Direct Subsidized Loans at all schools, which may not be available to the school the borrower is attending. Therefore, the Department must make the necessary system changes to the National Student Loan Data System (NSLDS), the Common Origination and Disbursement (COD) System, and the Central Procession System (CPS) to collect additional information, monitor borrower eligibility, alert borrowers and schools that a borrower is about to reach or has reached the 150 percent limit on eligibility for Direct Subsidized Loans, and ensure that no Direct Subsidized Loans are made to an ineligible borrower. Making such changes in a timely manner requires that the Department have the authority to collect the additional information as of the date the interim final regulations are published in the Federal Register. Doing otherwise would delay the effective date of the regulations and the Departments ability to comply with the requirements of MAP-21.
In order to make changes to its systems, the Department must rely on collections that have been cleared. Because collections that have been cleared under the emergency procedures are cleared immediately (even if temporarily), the Department would not be required to further delay these necessary changes. If the Department were required to put the collection through the normal clearance process, the Department could not begin implementing such changes until after the collection was cleared. We would be forced to delay the operational changes 2014.
This is a new collection. The burden hours calculated below include time for reviewing the change in regulations; for determining the method and means to incorporate changes; develop or update systems and forms and formats for gathering the required information; and to prepare the required reports. The regulatory changes in 685.200(f) cause changed to reporting. The regulatory changes in 685.304 require increased counseling of students by institutions.
$0
No
No
No
No
No
Uncollected
Ian foss 202 275-4552
Reginfo record details
No
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Interim Final[1].pdf
Collection Instrument_20130322.docx
Burden Table.xls
150% Limitation - Proprietary Institutions