PLUS Adverse Credit Reconsideration Loan Counseling

Forms and Documents

Document Name	Status
1845-0129 PLUS Adverse Credit Supporting Statement Oct 2020 30D.docx Supporting Statement A	2020-11-24

IC Document Collections

IC ID	Document Title	Status
212625	PLUS Credit Counseling Other-Credit Reconsideration Loan Counseling	Modified

ICR Details

OMB Control No: 1845-0129	ICR Reference No: 202007-1845-012
Status: Received in OIRA	Previous ICR Reference No: 201706-1845-003
Agency/Subagency: ED/FSA	Agency Tracking No: ED-2020-SCC-0127
Title: PLUS Adverse Credit Reconsideration Loan Counseling
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/24/2020

	Requested	Previously Approved
Expiration Date	36 Months From Approved	01/31/2021
Responses	142,824	475,974
Time Burden (Hours)	107,119	356,982
Cost Burden (Dollars)	0	0

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Abstract: Section 428B(a)(1)(A) of the Higher Education Act of 1965, as amended (HEA), provides that to be eligible to receive a Federal PLUS Loan under the Federal Family Education Loan (FFEL) Program, the applicant must not have an adverse credit history, as determined pursuant to regulations promulgated by the Secretary. In accordance with section 455(a)(1) of the HEA, this same eligibility requirement applies to applicants for PLUS loans under the Direct Loan Program. Since July 1, 2010 there have been no new FFEL Program loans originated and the Direct Loan Program is the only Federal loan program that offers Federal PLUS Loans. The adverse credit history section of the eligibility regulations in 34 CFR §685.200 (b) and (c) were updated in 2014 by the Department of Education (the Department) when a review of and a change to the regulations was made. Specifically, an applicant for a PLUS loan who is determined to have an adverse credit history must complete loan counseling offered by the Secretary before receiving the Federal PLUS loan. The Department is requesting a revision to the information collection regarding the adverse credit history regulations in 34 CFR §685.200 (b) and (c) and the burden these changes create for Federal PLUS loan borrowers, both parent and graduate/professional students.

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Authorizing Statute(s): US Code: 20 USC 1078-2 Name of Law: Higher Education Act of 1965, as amended Federal PLUS Loans
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 47758	08/06/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 67724	10/26/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
PLUS Credit Counseling

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	142,824	475,974	0	-333,150	0	0
Annual Time Burden (Hours)	107,119	356,982	0	-249,863	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: This is a request for a revision of the current information collection. We are estimating a decrease of 249,863 hours of burden to individuals to 107,119 hours 71,412 PLUS applicants x 1.5 hours). The decrease in burden is due to the decrease in the cases of borrowers who have been denied a PLUS loan due to an adverse credit determination and who appeal the loan denial determination using the extenuating circumstances determination or by obtaining an endorser without adverse credit to complete the enhanced PLUS loan counseling.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 11/24/2020

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