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.
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
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