FR2021 Final Removing SULA

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Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Rules and Regulations
TABLE 1—Continued
[Datum NAD 1983]
Event

Location

Event date

(9) Munising Fourth of July Celebration Fireworks; Munising, MI.

All U.S. navigable waters of South Bay within an approximate 800foot radius from the fireworks launch site at the end of the
Munising City Dock, centered in position: 46°24′50.08″ N,
086°39′08.52″ W.
All U.S. navigable waters of the St. Marys River within an approximate 1,000-foot radius around the eastern portion of the U.S. Army
Corp of Engineers Soo Locks North East Pier, centered in position:
46°30′19.66″ N, 084°20′31.61″ W.
All U.S. navigable waters of Lake Huron within an approximate 750foot radius of the fireworks launch site, centered approximately
1000 yards west of Round Island Passage Light, at position
45°50′30″ N, 084°36′30″ W.
All U.S. navigable waters of Lake Michigan and Harbor Springs Harbor within the arc of a circle with an approximate 1,200-foot radius
from the fireworks launch site located on a barge in position
45°25′30″ N, 084°59′06″ W.
All U.S. navigable waters of Lake Michigan and Bay Harbor Lake
within the arc of a circle with an approximate 750-foot radius from
the fireworks launch site located on a barge in position 45°21′50″
N, 085°01′37″ W.
All U.S. navigable waters of Lake Michigan and Petoskey Harbor, in
the vicinity of Bay Front Park, within the arc of a circle with an approximate 1,200-foot radius from the fireworks launch site located
in position 45°22′40″ N, 084°57′30″ W.
All U.S. navigable waters of Lake Charlevoix, in the vicinity of Veterans Park, within the arc of a circle with an approximate 1,400foot radius from the fireworks launch site located in position
45°13′30″ N, 085°01′40″ W.
All U.S. navigable waters of Lake Huron within an approximate
1,000-foot radius of the fireworks launch site located near the end
of Mason Street, South of State Avenue, at position 45°02′42″ N,
083°26′48″ W.
All U.S. navigable waters of the West Arm of Grand Traverse Bay
within the arc of a circle with an approximate 1,200-foot radius
from the fireworks launch site located on a barge in position
44°46′12″ N, 085°37′06″ W.
All U.S. navigable waters of Lake Charlevoix, in the vicinity of Depot
Beach, within the arc of a circle with an approximate 1,200-foot radius from the fireworks launch site located on a barge in position
45°19′08″ N, 085°14′18″ W.
All U.S. navigable waters of Round Lake within the arc of a circle
with an approximate 500-foot radius from the fireworks launch site
located on a barge in position 45°19′03″ N, 085°15′18″ W.

On July 4, 2021 from 7 p.m. to
12:30 a.m.

(10) Sault Sainte Marie Fourth of
July Celebration Fireworks; Sault
Sainte Marie, MI.
(11) Mackinac Island Fourth of July
Celebration Fireworks; Mackinac
Island, MI.
(12) Harbor Springs Fourth of July
Celebration Fireworks; Harbor
Springs, MI.
(13) Bay Harbor Yacht Club Fourth
of July Celebration Fireworks;
Petoskey, MI.
(14) Petoskey Fourth of July Celebration Fireworks; Petoskey, MI.
(15) Boyne City Fourth of July
Celebration Fireworks; Boyne
City, MI.
(16) Alpena Fourth of July Celebration Fireworks; Alpena, MI.
(17) Traverse City Fourth of July
Celebration Fireworks; Traverse
City, MI.
(18) Charlevoix Venetian Festival
Friday
Night
Fireworks;
Charlevoix, MI.

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(19) Charlevoix Venetian Saturday
Night Fireworks; Charlevoix, MI.

This action is being taken to provide
for the safety of life on navigable
waterways during the fireworks
displays. The regulations for safety
zones within the Captain of the Port
Sault Sainte Marie Zone, § 165.918,
apply for these fireworks displays.
This notice of enforcement is issued
under authority of 33 CFR 165.918 and
5 U.S.C. 552(a). In addition to this
notice of enforcement in the Federal
Register, the Coast Guard will provide
the maritime community with advance
notification of this enforcement period
via Broadcast Notice to Mariners or
Local Notice to Mariners. If the Captain
of the Port Sault Sainte Marie
determines that the safety zone need not
be enforced for the full duration stated
in this notice he or she may use a
Broadcast Notice to Mariners to grant

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ACTION:

Dated: June 8, 2021.
A.R. Jones,
Captain, U.S. Coast Guard, Captain of the
Port Sault Sainte Marie.

SUMMARY:

BILLING CODE 9110–04–P

DEPARTMENT OF EDUCATION
34 CFR Part 685
RIN 1840–AD60

Repeal of the William D. Ford Federal
Direct Loan Program Subsidized
Usage Limit Restriction
Office of Postsecondary
Education, Department of Education.

AGENCY:

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On July 4, 2021 from 10:15 p.m.
to 10:45 p.m.
On July 4, 2021 from 10:15 p.m.
to 10:45 p.m.
On July 4, 2021 from 10 p.m. to
11 p.m.
On July 4, 2021 from 6 p.m. to 11
p.m.
On July 4, 2021 from 9 p.m. to 11
p.m.
On July 4, 2021 from 10 p.m. to
10:30 p.m.
Rain date: July 5, 2021 from 10
p.m. to 10:30 p.m.
On July 23, 2021 from 10 p.m. to
11p.m.
On July 24, 2021 from 10 p.m. to
11 p.m.

Final regulations.

general permission to enter the
respective safety zone.

[FR Doc. 2021–12410 Filed 6–11–21; 8:45 am]

On July 4, 2021 from 9:30 p.m. to
11 p.m.
Rain date: July 5, 2021 from 9:30
p.m. to 11 p.m.
On July 4, 2021 from 9:45 p.m. to
11 p.m.

The Secretary removes and
amends regulations to conform with
changes made by the Consolidated
Appropriations Act, 2021. Specifically,
the Secretary removes the subsidized
usage loan limit restriction (SULA) for
any borrower who receives a Federal
Direct Stafford Subsidized Loan first
disbursed on or after July 1, 2021,
regardless of the award year associated
with the loan. In addition, all subsidy
benefits will be reinstated retroactively
to the date on which the loss of subsidy
was applied for all Federal Direct
Stafford Subsidized Loans with an
outstanding balance on July 1, 2021, and
for all award years since the 2013–2014
award year. The Secretary also removes
regulations related to the subsidized

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Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Rules and Regulations
usage loan limit restriction and makes
other technical changes.
DATES:

Effective date: August 13, 2021.

FOR FURTHER INFORMATION CONTACT:

Tamy Abernathy, 400 Maryland Avenue
SW, Room 2C–129, Washington, DC
20202. Telephone: (202) 453–5970.
Email: [email protected].
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay
Service (FRS), toll free, at 1–800–877–
8339.
SUPPLEMENTARY INFORMATION:

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Background
Section 705(b) of the Consolidated
Appropriations Act, 2021 authorizes the
Secretary to implement the repeal of
section 455(q) of the Higher Education
Act of 1965, as amended, before, but not
later than, July 1, 2023. The Act further
provides that the Secretary shall specify
on what date and for which award years
the implementation of such repeal will
be effective prior to July 1, 2023. The
Secretary specifies that the
implementation of the repeal will be
effective as of July 1, 2021 and will
apply beginning with the 2013–2014
award year.
Through this regulatory action, the
Secretary removes 34 CFR
685.200(a)(2)(i)(A) and (B) and (f) and
685.304(a)(6)(xvi) and (b)(4)(xii) to
reflect changes to section 455(q) of the
Higher Education Act of 1965, as
amended (HEA), which established the
subsidized usage loan limit. The
subsidized usage loan limit was
repealed by section 705(a) of the
Consolidated Appropriations Act, 2021.
Under these regulations, the
subsidized usage loan limit will not
apply to any borrower that receives a
Federal Direct Stafford Subsidized Loan
first disbursed on or after July 1, 2021,
regardless of the award year associated
with the loan. In addition, in the case
of a borrower who has a Federal Direct
Subsidized Stafford Loan which is
outstanding as of July 1, 2021 and on
which the borrower has been
responsible for interest because the
borrower exceeded the subsidized usage
loan limit, the Department of Education
(Department) will adjust the borrower’s
account to remove the interest that
accrued and reapply the borrower’s
payments accordingly. Any borrower
who has subsidized loan eligibility may
receive additional subsidized loans and
will not be subject to the subsidized
usage limit.

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Summary of the Major Provisions of
This Regulatory Action
In these final regulations we remove
34 CFR 685.200(a)(2)(i)(A) and (B) and
(f) and 685.304(a)(6)(xvi) and (b)(4)(xii)
to reflect the repeal of section 455(q) of
the HEA. In addition, we amend
§ 685.200(a)(2)(i) introductory text and
redesignate § 685.304(b)(4)(xiii) and
(xiv).
Borrower Eligibility (§ 685.200)
We remove a reference to eligibility
requirements for first-time borrowers
from § 685.200(a)(2)(i)(A) and (B).
Provisions specifying the limitations on
a borrower’s eligibility for Direct
Subsidized Loans and the borrower’s
responsibility for accruing interest in
§ 685.200(f) are removed.
Entrance Counseling
(§ 685.304(a)(6)(xvi))
We remove the requirement that
entrance counseling include
information on the limitation on
eligibility of Federal Direct Stafford
Subsidized Loans based on the
borrower’s subsidized usage period.
Exit Counseling (§ 685.304(b)(4)(xii))
We remove the requirement that exit
counseling include the following
information on the limitation on
eligibility for Federal Direct Subsidized
Loans based on the borrower’s
subsidized period:
(a) How the borrower’s maximum
eligibility period, remaining eligibility
period, and subsidized usage period are
determined;
(b) The sum of the borrower’s
subsidized usage periods at the time of
the exit counseling;
(c) The consequences of continued
borrowing or enrollment;
(d) The impact of the borrower
becoming responsible for accruing
interest on total student debt;
(e) That the Secretary will inform the
student borrower of whether he or she
is responsible for accruing interest on
his or her Direct Subsidized Loans; and
(f) That the borrower can access the
National Student Loan Data System
(NSLDS) to determine whether he or she
is responsible for accruing interest on
any Direct Subsidized Loans.
Waiver of Proposed Rulemaking
Under the Administrative Procedure
Act (5 U.S.C. 553) (APA), the
Department generally offers interested
parties the opportunity to comment on
proposed regulations. However, the
APA provides that an agency is not
required to conduct notice-andcomment rulemaking when the agency,
for good cause, finds that the

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31433

requirement is impracticable,
unnecessary, or contrary to the public
interest (5 U.S.C. 553(b)(B) and (d)(3)).
There is good cause to waive
rulemaking in this case because this
final regulatory action removes
regulations for which the statutory
authority has been repealed. This
regulatory action adopts no new
regulations and does not establish or
affect substantive policy. Furthermore,
section 705(b) of the Consolidated
Appropriations Act, 2021 authorizes the
Secretary to implement the repeal of
section 455(q) of the HEA before, but
not later than, July 1, 2023. The statute
further provides that the Secretary shall
specify in a designation on what date
and for which award years the
implementation of such repeal will be
effective prior to July 1, 2023. The
repeal of section 455(q) of the HEA
under section 705 of the Consolidated
Appropriations Act, 2021 reverses the
impact of SULA for affected borrowers
and acknowledges that SULA was first
authorized to be a temporary and costsaving measure to the Federal
Government. To fully implement the
repeal, the Secretary has specified that
the implementation of the repeal will be
effective beginning with the 2013–2014
award year, which was the first year that
SULA was implemented. Implementing
otherwise would allow for the
regulations to continue to apply to
current students. Accordingly, we are
rescinding regulations that are not valid
because we no longer have statutory
authority to implement and doing so in
the manner that fully effectuates the
repeal (i.e., the repeal will be effective
beginning with the 2013–2014 award
year). Notice-and-comment rulemaking
is unnecessary in that the Department
does not have discretion to retain these
regulatory provisions or implement in a
different manner, regardless of public
opinion and input.
While we do have discretion as to the
effective date of the rule (as opposed to
the award year)—as long as it is before
July 1, 2023—there is no significant
substantive impact of the effective date
of the rule, as, regardless of the effective
date provided, the rule would have to
apply to all award years since SULA
was implemented to fully effectuate the
statute. Thus, with regard to all
substantive aspects of the rule, we do
not have discretion to implement in an
alternative manner based on public
input. Therefore, under 5 U.S.C.
553(b)(B), the Secretary has determined
that proposed regulations are
unnecessary, and, thus, waives noticeand-comment rulemaking.
In addition, under section 492 of the
HEA (20 U.S.C. 1098a), all regulations

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Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Rules and Regulations

proposed by the Department for
programs authorized under title IV of
the HEA are subject to negotiated
rulemaking requirements. Section
492(b)(2) of the HEA provides that
negotiated rulemaking may be waived
for good cause when its use would be
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Section 492(b)(2)
of the HEA also requires the Secretary
to publish the basis for waiving
negotiations in the Federal Register at
the same time as the regulations in
question are first published. There is
good cause to waive the negotiated
rulemaking requirement in this case,
since, as explained above, notice and
comment rulemaking is unnecessary in
this case.
Executive Orders 12866 and 13563

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Regulatory Impact Analysis
Under Executive Order 12866, the
Office of Management and Budget
(OMB) determines whether this
regulatory action is ‘‘significant’’ and,
therefore, subject to the requirements of
the Executive order and subject to
review by OMB. Section 3(f) of
Executive Order 12866 defines a
‘‘significant regulatory action’’ as an
action likely to result in a rule that
may—
(1) Have an annual effect on the
economy of $100 million or more, or
adversely affect a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or Tribal governments or
communities in a material way (also
referred to as an ‘‘economically
significant’’ rule);
(2) Create serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impacts of entitlement grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
stated in the Executive order.
OMB has determined that this rule is
an economically significant action and
would have an annual effect on the
economy of more than $100 million.
This rule restores subsidy benefits for
borrowers holding approximately $2.4
billion in outstanding loans and allows
current and future borrowers to borrow
additional subsidized loans. Given the
scale of Federal student aid amounts
disbursed yearly, the addition of even
small percentage changes could result in
transfers between the Federal
Government and students of more than
$100 million on an annualized basis.

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Pursuant to Subtitle E of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (also known as the
Congressional Review Act) (5 U.S.C. 801
et seq.), the Office of Information and
Regulatory Affairs (OIRA) designated
this rule as a ‘‘major rule,’’ as defined
by 5 U.S.C. 804(2).
We have also reviewed this regulatory
action under Executive Order 13563,
which supplements and explicitly
reaffirms the principles, structures, and
definitions governing regulatory review
established in Executive Order 12866.
To the extent permitted by law,
Executive Order 13563 requires that an
agency—
(1) Propose or adopt regulations only
upon a reasoned determination that
their benefits justify their costs
(recognizing that some benefits and
costs are difficult to quantify);
(2) Tailor its regulations to impose the
least burden on society, consistent with
obtaining regulatory objectives and
taking into account—among other things
and to the extent practicable—the costs
of cumulative regulations;
(3) In choosing among alternative
regulatory approaches, select those
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety,
and other advantages; distributive
impacts; and equity);
(4) To the extent feasible, specify
performance objectives, rather than the
behavior or manner of compliance a
regulated entity must adopt; and
(5) Identify and assess available
alternatives to direct regulation,
including economic incentives—such as
user fees or marketable permits—to
encourage the desired behavior, or
provide information that enables the
public to make choices.
Executive Order 13563 also requires
an agency ‘‘to use the best available
techniques to quantify anticipated
present and future benefits and costs as
accurately as possible.’’ OIRA has
emphasized that these techniques may
include ‘‘identifying changing future
compliance costs that might result from
technological innovation or anticipated
behavioral changes.’’
As required by Executive Order
13563, the Department has assessed the
potential costs and benefits, both
quantitative and qualitative, of this
regulatory action, and we are issuing
these regulations only on a reasoned
determination that their benefits would
justify their costs. In choosing among
alternative regulatory approaches, we
selected those approaches that
maximize net benefits. Based on the
analysis that follows, the Department
believes that the regulations are

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consistent with the principles in
Executive Order 13563.
We also have determined that this
regulatory action would not unduly
interfere with State, local, or Tribal
governments in the exercise of their
governmental functions.
In accordance with the Executive
orders, the Department has assessed,
both quantitatively and qualitatively,
the potential costs and benefits of this
regulatory action.
In this regulatory impact analysis, we
discuss the need for regulatory action,
the potential costs and benefits, net
budget impacts, and regulatory
alternatives we considered.
Elsewhere in this section, under
Paperwork Reduction Act of 1995, we
identify and explain burdens
specifically associated with information
collection requirements.
Need for Regulatory Action
As discussed in the preamble, the
final regulations implement statutory
changes made by section 705 of the
Consolidated Appropriations Act, 2021.
These regulations remove regulations
that implemented section 455(q) of the
HEA, which limited the amount of
Federal Direct Stafford Loans a borrower
could receive based on their subsidized
usage. As allowed by section 705(b) of
the Consolidated Appropriations Act,
2021 the Secretary is making this
change effective for all Federal Direct
Stafford Subsidized Loans first
disbursed on or after July 1, 2021,
regardless of the award year associated
with the loan. In addition, in the case
of a borrower who has a Federal Direct
Subsidized Stafford Loan which is
outstanding as of July 1, 2021, and on
which the borrower has been
responsible for interest because the
borrower exceeded the subsidized usage
loan limit, the Department will adjust
the borrower’s account to remove the
interest that accrued and reapply the
borrower’s payments accordingly.
Since the subsidized loan limit based
on the borrower’s subsidized usage have
been repealed, the regulations requiring
that the borrower be given information
on those limits during entrance and exit
counseling are also being removed.
Costs, Benefits, and Transfers
The primary beneficiaries of these
regulations are affected borrowers who
will either be eligible for subsidized
loans without being subject to the
subsidized usage limit when they obtain
loans on or after July 1, 2021, or who
will have their subsidized interest
benefits restored for existing loans that
previously lost the subsidy due to the
subsidized usage limit. Affected

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borrowers will face a reduced financial
burden associated with their student
loans as they will be able to obtain
additional subsidized loans or have
their interest benefits restored. This
difference may allow students to afford

31435

limitation, as shown in Table 1. Of
these, approximately 316,350 loans with
an outstanding balance of $1.1 billion
are eligible for reinstatement of subsidy
benefits.

additional courses they need to
complete an educational program. The
Department estimates that
approximately 354,000 loans with a
total of $1.2 billion in disbursements
were subject to the subsidized usage

Table 1: Swnmary of Subsidized Loans Subject to Loss
of Subsidy
Program
School Control

Balance Status

2-year

Public

No Balance
Positive Balance
No Balance
Positive Balance
No Balance
Positive Balance

Private, Non-profit
Proprietary
2-year

4-year

Total

Foreign
Public

Proprietary
Total

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The benefit of restoring subsidized
loan interest benefits to individual
students will depend on the outstanding
balances and interest rates on the
affected loans. For example, on a $5,500
Direct Subsidized Loan with a 2.75%
interest rate, the amount of interest that
accrues per day is $0.41. If a borrower
is in a deferment for 1 year and does not
pay off the interest as it accrues, the
loan would accrue interest totaling
$149.64. At the end of the deferment
period, the interest would capitalize and
then the amount of interest that accrues
per day would be $0.42. Across multiple
loans and years, the amount can be
significant.
Future students will also benefit from
not having to consider the potential loss
of subsidized interest benefits when
making decisions about course choices
or the timing for completing their
programs, simplifying their decision
making. Restoring the interest rate

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Total Balance

22,999,441
327,171,269
2,406,114
19,569,896
12,254,723
102,503,049

16,260

37,660,278

Positive Balance

152,071

449,244,214

476,702,509

*

189
18,056
175,554
11,025
83,184
7,999
57,613

707,948
51,257,358
596,184,854
31,910,596
286,680,366
16,309,764
169,756,237

704,415

No Balance
Positive Balance
No Balance
Positive Balance
No Balance
Positive Balance
No Balance

Note: Asterisk refers to split by balance
status being suppressed due to small cell
sizes.

Total Disbursed

9,266
107,545
1,145
6,924
5,849
37,602

No Balance

Private, Non-profit

4-year

Loan Count

347,774,140
20,717,606
108,210,763

623,642,932
299,756,647
180,970,825

37,080

99,477,718

Positive Balance

316,351

1,052,621,457

1,104,370,404

Overall (includes Foreign)

353,620

1,152,807,123

1,105,074,819

subsidy may help with completion,
which is a key factor in achieving the
economic benefits associated with
postsecondary education. As noted in
the Paperwork Reduction Act section of
this preamble, these students will also
have a reduced burden from the
elimination of entrance and exit
counseling material associated with the
subsidized loan usage limit. This is
estimated to save students 175,175
hours annually for a savings of $3.5
million at an assumed wage rate of
$20.17 1 for students’ time.
Institutions will also be affected by
the removal of the subsidized loan usage
limitation. The ability of some
borrowers to obtain additional
subsidized loans may lead them to
enroll in extra courses or to complete
programs, which may provide some
1 Students’

hourly rate estimated using national
median hourly wage for all occupations. Bureau of
Labor Statistics, May 2020 Occupational
Employment Statistics Data. Available at
www.bls.gov/oes/current/oes_nat.htm#00–0000.
Last accessed March 31, 2021.

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additional revenue to institutions. As
indicated in the Paperwork Reduction
Act section of this preamble,
institutions will no longer have to
include information about subsidized
loan limits in entrance and exit
counseling for affected borrowers. This
is estimated to reduce paperwork
burden by 12,904 hours for estimated
savings of $1.2 million at a wage rate of
$$93.74, representing the $46.87 median
hourly wage for postsecondary
administrators doubled to capture
benefits and overhead.2
The Federal Government will be
making increased transfers to subsidized
loan borrowers as noted in the Net
Budget Impact section. This change will
also require the Department to pay for
system changes to implement the repeal
2 Bureau of Labor Statistics, Occupational
Employment and Wage Statistics, May 2020
National Occupational Employment and Wage
Estimates Management Occupations—
Postsecondary Administrators, 2020 median hourly
wage. Available at www.bls.gov/oes/current/oes_
nat.htm#11–0000.

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of the subsidized usage limit. The
Department estimates that the SULA
Repeal Phases 1 and 2 will cost
$454,025. Phase 1 consists of modifying
existing triggers in the reporting of
origination and disbursement data to the
Common Origination and Disbursement
(COD) system and the reporting of
enrollment data to the National Student
Loan Data System (NSLDS) with an
estimated cost of $279,025. Phase 2
involves evaluating and implementing
the impacts of SULA repeal to the Office
of Partner Participation and Oversight
(PPO)/FSA Partner Connect, DCC/
Digital Platform (StudentAid.gov,
myStudentAid app), Customer Care
Platform, Marketing and
Communications Platform as well as
other interfaces and reports that include
SULA data and is expected to cost
approximately $175,000.
Net Budget Impact
The total net budget impact of the
regulations is $1,888 million in outlays
over 10 years. We estimate that these
regulations will have a net Federal
budget impact for Federal student loan
cohorts between 2021–2030 of $635
million as well as an effect on past
cohorts of $180.1 million for the
restoration of interest benefits. We also
estimate a potential shift from
unsubsidized loans to subsidized loans
after July 1, 2021, with a two percent
shift costing approximately $1,073
million in additional outlays for the
Federal student loan cohorts between
2021–2030. A cohort reflects all loans
originated in a given fiscal year.
Consistent with the requirements of the

Credit Reform Act of 1990, budget cost
estimates for the student loan programs
reflect the estimated net present value of
all future non-administrative Federal
costs associated with a cohort of loans.
The Net Budget Impact is compared to
a modified version of the 2020
President’s Budget baseline (PB2021)
that adjusts for the Coronavirus Aid,
Relief, and Economic Security (CARES)
Act and extension of coronavirusrelated student loan provisions and
other recent regulations.
The net budget impact of the
increased transfers associated with the
removal of the subsidized loan usage
limitation come from the restoration of
subsidized loan interest benefits to
existing borrowers and additional
subsidized loan volume, as future
borrowers are no longer subject to the
limitation. The loss of subsidized loan
benefits was previously modeled by
applying interest to subsidized loans
assumed to be affected by the limitation.
Reversing this added interest for
existing cohorts is estimated to cost
$180 million and $635 million for
cohorts from 2021 to 2030.
The potential increase in subsidized
loan volume, either from those who did
not borrow because of the limit or who
took out unsubsidized loans instead, is
challenging to predict. While borrowers
with $1.6 billion in disbursements were
affected by the limit, it is likely that
others managed their subsidized loan
usage, with the help of their
institutions, to not trigger the loss of
subsidized benefits. Future borrowers
will not face the same constraint, so
some borrowers who would not be

identified as being affected by the
subsidized loan usage limit will also
take additional subsidized loans. The
peak year for disbursements affected by
the subsidized usage limitation was
2016, with approximately $356.5
million in subsidized loans. This
represents around 2 percent of the
$22.95 billion in subsidized loans
disbursed in AY 2015–2016. Table 2
demonstrates the cost of shifting loan
volume from unsubsidized to
subsidized with the 2 percent shift
within the range evaluated.

TABLE 2—COST OF SHIFTING FROM
UNSUBSIDIZED
TO
SUBSIDIZED
LOANS FOR COHORTS 2021–2030
[Millions]
Estimated
cost

Volume shift
1 percent .....................................
2 percent .....................................
5 percent .....................................

$852
1,073
1,739

Accounting Statement
As required by OMB Circular A–4
(available at www.whitehouse.gov/sites/
default/files/omb/assets/omb/circulars/
a004/a-4.pdf), in the following table we
have prepared an accounting statement
showing the classification of the
expenditures associated with the
provisions of these final regulations.
This table provides our best estimate of
the changes in annual monetized
transfers as a result of this rule.
Expenditures are classified as transfers
from the Federal Government to affected
student loan borrowers.

TABLE 3—ACCOUNTING STATEMENT: CLASSIFICATION OF ESTIMATED EXPENDITURES
[In millions]
Benefits
Category
7%
Reduction in paperwork burden on students and institutions from elimination of subsidized usage limit information in entrance and exit counseling requirements ..............................................................................................

3%
4.8

Category

Costs
7%

Costs to modify Government systems for administering student loans to implement repeal of SULA ..................

3%
$.06

Category

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Increased transfers of subsidized loans to eligible students ..................................................................................
Restoration of subsidized loan benefits to affected borrowers ...............................................................................

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consideration to borrowers with
outstanding balances on unsubsidized
loans because of SULA, the Department

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Frm 00010

$.05

Transfers
7%

Alternatives Considered
While the statute could have been
implemented prospectively without

4.8

Fmt 4700

Sfmt 4700

3%
$96.2
$85.4

$98.7
$82.7

interprets this repeal by Congress to
reverse the impact of SULA, which was
instituted initially as a cost-saving

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Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Rules and Regulations
measure to the Department. The
Department views section 705 of the
Consolidated Appropriations Act, 2021,
as it does other provisions in the Act, to
streamline the student aid process and
to provide additional support for
students. Solely lifting the restriction for
borrowers on a going-forward basis
would not provide relief for those
borrowers who have been subject to
SULA to date, most notably during a
time of unprecedented financial strain
due to COVID–19. The Department
believes that the only equitable
approach to implementing this repeal is
to apply it to the 2013–2014 award year,
or the first year SULA was
implemented, as permitted by the
statute. Therefore, no other alternatives
were considered for the revisions to the
regulations included in this document
because these changes implement
changes to the HEA enacted by
Congress, and the Department did not
exercise discretion in developing these
amendments which remove the SULA
restriction as mandated by the statute.
Regulatory Flexibility Act Certification
The Regulatory Flexibility Act does
not apply to this rulemaking because
there is good cause to waive notice and
comment under 5 U.S.C. 553.

1845—0116

Paperwork Reduction Act of 1995
As part of its continuing effort to
reduce paperwork and respondent
burden, the Department provides the
general public and Federal agencies
with an opportunity to comment on the
discontinuance of collections of
information in accordance with the
Paperwork Reduction Act of 1995 (PRA)
(44 U.S.C. 3506(c)(2)(A)). This helps
ensure that: The public understands the
Department’s collection instructions,
respondents can provide the requested
data in the desired format, reporting
burden (time and financial resources) is
minimized, collection instruments are
clearly understood, and the Department
can properly assess the impact of
collection requirements on respondents.
Respondents also have the opportunity
to comment on the Department’s burden
reduction estimates. A Federal agency
may not conduct or sponsor a collection
of information unless OMB approves the
collection under the PRA and the
corresponding information collection
instrument displays a currently valid
OMB control number. Notwithstanding
any other provision of law, no person is
required to comply with, or is subject to
penalty for failure to comply with, a
collection of information if the
collection instrument does not display a
currently valid OMB control number.
These final regulations do not create
any new information collection

requirements. The final regulations
remove requirements related to the
subsidized loan usage limit that was
repealed by section 705(a) of the
Consolidated Appropriations Act, 2021.
That action will eliminate the burden
assessed to the applicable regulations in
the following previously approved
information collection. The appropriate
information collection filings will be
made to coincide with the effective date
of these regulations to discontinue a
portion of the currently approved
information collection, as noted below,
and to transfer part of this collection to
another approved information
collection. We are removing OMB
control number 1845–0116 from the
regulations because the collection is no
longer necessary.
We are removing
§§ 685.200(a)(2)(i)(A) and (B) and (f) and
685.304(a)(6)(xvi) and (b)(4)(xii) from
the regulations as discussed above. With
this action, the burden assessed for the
regulations in § 685.304 under OMB
Control Number 1845–0116, ‘‘William
D. Ford Federal Direct Loan Program—
150% Limitation’’ is being
discontinued. Other reporting or
recordkeeping requirements in these
regulatory sections are not affected by
this discontinuation and burden
continues to be assessed under 1845–
0021.

BURDEN TO BE DISCONTINUED FROM COUNSELING REQUIREMENTS

Respondent type

Responses

Hours

Cost 3

Individual ......................................................................................................................................
Public Institution ...........................................................................................................................
Private Institution .........................................................................................................................
Proprietary Institution ...................................................................................................................

¥4,950,095
¥3,630
¥3,262
¥3,430

¥175,175
¥4,538
¥4,078
¥4,288

$¥3,533,280
¥425,392
¥382,272
¥401,957

Total discontinued for 1845–0116 ........................................................................................

¥4,960,417

¥188,079

¥4,742,901

However, the specific reporting and
recordkeeping requirements in
§§ 685.301(c) and 685.309(b) of these

regulatory sections are not affected by
this discontinuation and burden in this
collection related to those sections will

be transferred from 1845–0116 to 1845–
0021.

Respondent type

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31437

Responses

Hours

Public Institution .......................................................................................................................................................
Private Institution .....................................................................................................................................................
Proprietary Institution ...............................................................................................................................................

1,241,812
532,524
367,979

28,570
13,736
10,439

Subtotal .............................................................................................................................................................

2,142,315

52,745

New Total for 1845–0021 ..........................................................................................................................

11,184,455

792,491

3 Individual costs, $20.17, are based on Students’
hourly rate estimated using national median hourly
wage for all occupations. Bureau of Labor Statistics,
May 2020 Occupational Employment Statistics
Data. Available at www.bls.gov/oes/current/oes_
nat.htm#00–0000. Last accessed on March 31, 2021.

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Institutional costs are based on the Bureau of Labor
Statistics, Occupational Employment and Wage
Statistics, as listed in the May 2020 National
Occupational Employment and Wage Estimates
Management Occupations—Postsecondary
Administrators, 2020 median hourly wage which is

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available at www.bls.gov/oes/current/oes_
nat.htm#11–0000. The institutional rate, $93.74, is
representing the $46.87 median hourly wage for
postsecondary administrators doubled to capture
benefits and overhead.

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31438

Federal Register / Vol. 86, No. 112 / Monday, June 14, 2021 / Rules and Regulations

Intergovernmental Review
The William D. Ford Federal Direct
Loan Program is not subject to Executive
Order 12372 and the regulations in 34
CFR part 79.
Assessment of Educational Impact
Based on our own review, we have
determined that the final regulations do
not require transmission of information
that any other agency or authority of the
United States gathers or makes
available.
Accessible Format: On request to the
program contact person listed under FOR
FURTHER INFORMATION CONTACT,
individuals with disabilities can obtain
this document in an accessible format.
The Department will provide the
requestor with an accessible format that
may include Rich Text Format (RTF) or
text format (txt), a thumb drive, an MP3
file, braille, large print, audiotape, or
compact disc, or other accessible format.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. You may access the official
edition of the Federal Register and the
Code of Federal Regulations at
www.govinfo.gov. At this site you can
view this document, as well as all other
documents of this Department
published in the Federal Register, in
text or Portable Document Format
(PDF). To use PDF, you must have
Adobe Acrobat Reader, which is
available free at the site.
You may also access documents of the
Department published in the Federal
Register by using the article search
feature at: www.federalregister.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
You may also view this document in
text or PDF at the following site:
www.ifap.ed.gov/.
(Assistance Listing Number: 84.268
Federal Direct Student Loans.)

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Administrative practice and
procedure, Colleges and universities,
Loan programs—Education, Reporting
and recordkeeping requirements,
Student aid, Vocational education.
Michelle Asha Cooper,
Acting Assistant Secretary for Postsecondary
Education.

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1. The authority citation for part 685
continues to read in part as follows:

■

Authority: 20 U.S.C. 1070g, 1087a, et seq.,
unless otherwise noted.

*

*

§ 685.200

*

*

*

[Amended]

2. Section 685.200 is amended by:
a. In paragraph (a)(2)(i) introductory
text, removing ‘‘must—’’ and adding in
its place ‘‘must demonstrate financial
need in accordance with title IV, part F
of the Act.’’.
■ b. Removing paragraphs (a)(2)(i)(A)
and (B) and (f).
■ c. Removing the parenthetical
authority citation at the end of the
section.
■
■

§ 685.304

[Amended]

3. Section 685.304 is amended by:
a. In paragraph (a)(6)(xiv), adding
‘‘and’’ after the semicolon.
■ b. In paragraph (a)(6)(xv), removing ‘‘;
and’’ and adding a period in its place.
■ c. Removing paragraphs (a)(6)(xvi)
and (b)(4)(xii).
■ d. Redesignating paragraphs
(b)(4)(xiii) and (xiv) as paragraphs
(b)(4)(xii) and (xiii), respectively.
■
■

[FR Doc. 2021–12384 Filed 6–11–21; 8:45 am]
BILLING CODE 4000–01–P

ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 81
[EPA–HQ–OAR–2017–0548; FRL–10019–90–
OAR]
RIN 2060–AV06

Revised Air Quality Designations for
the 2015 Ozone National Ambient Air
Quality Standards
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:

This final action revises or
affirms the initial air quality
designations for 14 counties associated
with seven nonattainment areas for the
2015 primary and secondary National
Ambient Air Quality Standards
(NAAQS) for ozone. In a July 10, 2020,
decision, the District of Columbia
Circuit Court remanded to the
Environmental Protection Agency (EPA
or Agency), but did not vacate, the April
30, 2018, designations for 16 counties
associated with nine nonattainment
areas located in seven states. In
response, the EPA has re-evaluated the

SUMMARY:

List of Subjects in 34 CFR Part 685

For the reasons discussed in the
preamble, the Secretary amends part
685 of title 34 of the Code of Federal
Regulations as follows:

PART 685—WILLIAM D. FORD
FEDERAL DIRECT LOAN PROGRAM

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Fmt 4700

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designations for the remanded counties
by applying a uniform, nationwide
analytical approach and interpretation
of the designation provisions of the
Clean Air Act (CAA) in considering the
specific facts and circumstances of the
areas using only data and information
available at the time of the original
designations. In this final action, the
EPA is revising the designations and/or
boundaries of 13 counties associated
with six nonattainment areas in four
states (Illinois, Indiana, Missouri, and
Wisconsin) and is affirming the April
30, 2018, designation of one county
associated with a nonattainment area in
Michigan. The EPA is addressing the
two additional remanded counties
associated with two nonattainment
areas in a separate Federal Register
document.
DATES: The effective date of this rule is
July 14, 2021.
ADDRESSES: The EPA has established a
public docket for these ozone
designations at https://
www.regulations.gov under Docket ID
No. EPA–HQ–OAR–2017–0548.1
Although listed in the docket index,
some information is not publicly
available, e.g., Confidential Business
Information or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the internet and will be publicly
available only in hard copy form.
Out of an abundance of caution for
members of the public and our staff, the
EPA Docket Center and Reading Room
are currently closed to the public, with
limited exceptions, to reduce the risk of
transmitting COVID–19. The Docket
Center staff will continue to provide
remote customer service via email,
phone, and webform. For further
information on EPA Docket Center
services and the current status, please
visit us online at https://www.epa.gov/
dockets.
In addition, the EPA has established
a website for the designations for the
2015 ozone NAAQS at https://
www.epa.gov/ozone-designations. The
website includes the EPA’s final revised
designations action, technical support
documents, revised responses to
comments and other related
information.
FOR FURTHER INFORMATION CONTACT: For
general questions concerning this
action, contact Carla Oldham, Office of
Air Quality Planning and Standards,
1 The https://www.regulations.gov platform is in
the process of being upgraded. Users may be
automatically redirected to https://
beta.regulations.gov. Both website addresses
contain the same information.

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