Rule2021-12384
Repeal of the William D. Ford Federal Direct Loan Program Subsidized Usage Limit Restriction
Primary source
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Published
June 14, 2021
Effective
August 13, 2021
Issuing agencies
Education Department
Abstract
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 usage loan limit restriction and makes other technical changes.
Full Text
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<title>Federal Register, Volume 86 Issue 112 (Monday, June 14, 2021)</title>
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[Federal Register Volume 86, Number 112 (Monday, June 14, 2021)]
[Rules and Regulations]
[Pages 31432-31438]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-12384]
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DEPARTMENT OF EDUCATION
34 CFR Part 685
RIN 1840-AD60
Repeal of the William D. Ford Federal Direct Loan Program
Subsidized Usage Limit Restriction
AGENCY: Office of Postsecondary Education, Department of Education.
ACTION: Final regulations.
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SUMMARY: 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
[[Page 31433]]
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: <a href="/cdn-cgi/l/email-protection#540035392d7a153631263a35203c2d1431307a333b22"><span class="__cf_email__" data-cfemail="3662575b4f18775453445857425e4f76535218515940">[email protected]</span></a>.
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:
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.
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 Sec.
685.200(a)(2)(i) introductory text and redesignate Sec.
685.304(b)(4)(xiii) and (xiv).
Borrower Eligibility (Sec. 685.200)
We remove a reference to eligibility requirements for first-time
borrowers from Sec. 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 Sec.
685.200(f) are removed.
Entrance Counseling (Sec. 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 (Sec. 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-and-comment rulemaking when
the agency, for good cause, finds that the 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 cost-saving 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 notice-and-comment rulemaking.
In addition, under section 492 of the HEA (20 U.S.C. 1098a), all
regulations
[[Page 31434]]
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
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.
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 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
[[Page 31435]]
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 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 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.
[GRAPHIC] [TIFF OMITTED] TR14JN21.001
Note: Asterisk refers to split by balance status being
suppressed due to small cell sizes.
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 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.
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\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 <a href="http://www.bls.gov/oes/current/oes_nat.htm#00-0000">www.bls.gov/oes/current/oes_nat.htm#00-0000</a>. Last accessed March 31, 2021.
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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 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\
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\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 <a href="http://www.bls.gov/oes/current/oes_nat.htm#11-0000">www.bls.gov/oes/current/oes_nat.htm#11-0000</a>.
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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
[[Page 31436]]
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 (<a href="http://StudentAid.gov">StudentAid.gov</a>, 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 coronavirus-related
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
Volume shift cost
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1 percent................................................... $852
2 percent................................................... 1,073
5 percent................................................... 1,739
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Accounting Statement
As required by OMB Circular A-4 (available at <a href="http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf">www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf</a>), 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]
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Benefits
Category -------------------------------
7% 3%
------------------------------------------------------------------------
Reduction in paperwork burden on 4.8 4.8
students and institutions from
elimination of subsidized usage limit
information in entrance and exit
counseling requirements................
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Category Costs
-------------------------------
7% 3%
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Costs to modify Government systems for $.06 $.05
administering student loans to
implement repeal of SULA...............
------------------------------------------------------------------------
Category Transfers
-------------------------------
7% 3%
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Increased transfers of subsidized loans $96.2 $98.7
to eligible students...................
Restoration of subsidized loan benefits $85.4 $82.7
to affected borrowers..................
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Alternatives Considered
While the statute could have been implemented prospectively without
consideration to borrowers with outstanding balances on unsubsidized
loans because of SULA, the Department interprets this repeal by
Congress to reverse the impact of SULA, which was instituted initially
as a cost-saving
[[Page 31437]]
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.
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 Sec. Sec. 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
Sec. 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.
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\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 <a href="http://www.bls.gov/oes/current/oes_nat.htm#00-0000">www.bls.gov/oes/current/oes_nat.htm#00-0000</a>. Last accessed on March 31, 2021. 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
available at <a href="http://www.bls.gov/oes/current/oes_nat.htm#11-0000">www.bls.gov/oes/current/oes_nat.htm#11-0000</a>. The
institutional rate, $93.74, is representing the $46.87 median hourly
wage for postsecondary administrators doubled to capture benefits
and overhead.
1845--0116 Burden To Be Discontinued From Counseling Requirements
----------------------------------------------------------------------------------------------------------------
Respondent type Responses Hours Cost \3\
----------------------------------------------------------------------------------------------------------------
Individual...................................................... -4,950,095 -175,175 $-3,533,280
Public Institution.............................................. -3,630 -4,538 -425,392
Private Institution............................................. -3,262 -4,078 -382,272
Proprietary Institution......................................... -3,430 -4,288 -401,957
-----------------------------------------------
Total discontinued for 1845-0116............................ -4,960,417 -188,079 -4,742,901
----------------------------------------------------------------------------------------------------------------
However, the specific reporting and recordkeeping requirements in
Sec. Sec. 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 Responses Hours
------------------------------------------------------------------------
Public Institution...................... 1,241,812 28,570
Private Institution..................... 532,524 13,736
Proprietary Institution................. 367,979 10,439
-------------------------------
Subtotal............................ 2,142,315 52,745
-------------------------------
New Total for 1845-0021......... 11,184,455 792,491
------------------------------------------------------------------------
[[Page 31438]]
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
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(Assistance Listing Number: 84.268 Federal Direct Student Loans.)
List of Subjects in 34 CFR Part 685
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.
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
0
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.
* * * * *
Sec. 685.200 [Amended]
0
2. Section 685.200 is amended by:
0
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.''.
0
b. Removing paragraphs (a)(2)(i)(A) and (B) and (f).
0
c. Removing the parenthetical authority citation at the end of the
section.
Sec. 685.304 [Amended]
0
3. Section 685.304 is amended by:
0
a. In paragraph (a)(6)(xiv), adding ``and'' after the semicolon.
0
b. In paragraph (a)(6)(xv), removing ``; and'' and adding a period in
its place.
0
c. Removing paragraphs (a)(6)(xvi) and (b)(4)(xii).
0
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
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</html>Indexed from Federal Register on June 14, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.