SAFRA Act Application: Payments to Loan Servicers for Job Retention and Interim Final Requirements

Forms and Documents

Document Name	Status
SAFRA Act Application for Payments to Loan Servicers Form and Instruction	New
SAFRA Emergency Memo for Application.doc Supplementary Document	2010-06-14
SAFRA justif june 14 KSmith.doc Supporting Statement A	2010-06-14

IC Document Collections

IC ID	Document Title	Status
193267	SAFRA Act Application for Payments to Loan Servicers Form and Instruction	New

ICR Details

OMB Control No: 1840-0815	ICR Reference No: 201006-1840-002
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: ED/OPE	Agency Tracking No: 4336
Title: SAFRA Act Application: Payments to Loan Servicers for Job Retention and Interim Final Requirements
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 06/25/2010
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/23/2010
	Date Received in OIRA: 06/15/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2010	6 Months From Approved
Responses	37	0	0
Time Burden (Hours)	1,739	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: The Department of Education is requesting emergency clearance of the data collection associated with this clearance by June 25, 2010. An emergency clearance is needed to meet the Congressional legislative mandate to award funds to loan servicers prior to the end of the 2010 fiscal year. These funds were not appropriated until the Health Care and Education Reconciliation Act was signed on March 30, 2010. Specifically, this data collection is necessary to implement the requirements in section 458(a)(7) of the Higher Education Act of 1965 as amended (HEA), as added by section 2212 (b) (1) of the SAFRA Act. Title II of the Health Care and Education Reconciliation Act of 2010. The SAFRA Act requires the Department to commit $25,000,000 to distribute to eligible servicers by the end of FY 2010 and another $25,000,000 by the end of FY 2011. This data collection is necessary to assist Federal Family Education Loan (FFEL) servicers in retaining jobs at their loan servicing facilities located in the United States as of January 1, 2010. The SAFRA Act provides for eligible loan servicers to apply for funds to assist them in maintaining jobs of people working on loan servicing at their U.S. locations. The Department will determine by formula the dollar amount of funds each eligible servicer will receive.

Emergency Justfication: We must meet the deadline set by Congress to evaluate applications and obligate the awards before the end of the 2010 government fiscal year. We have a tight time frame to notify servicers, review their application, determine award amounts and inform servicers of award amounts and receive their updated plan for retaining jobs at their location within the U.S. The SAFRA Act Payments to Loan Servicers for Job Retention is a new requirement that requires the Department to implement the requirements in section 458(a) (7) of the Higher Education Act of 1965 as amended (HEA), as added by section 2212 (b) (1) of the SAFRA Act, Title II of the Health Care and Education Reconciliation Act of 2010, (Public Law 111-152). Specifically, SAFRA requires the Secretary to provide payments to student loan servicers in FY 2010 and FY 2011 for retaining jobs at locations in the United Sates where such servicers were operating under part B of the HEA on January 1, 2010. Implementation of the SAFRA Act requirements will be conducted in several phases. First, FFEL loan servicers will submit application forms with payroll information for individuals working within a servicing entity on loan origination activity at the location they designate on the date specified in the final requirements, as well as a plan for preserving jobs at that facility. This information provided will be used by the Department to determine award amount. The Department will calculate, by formula, the award each servicer will receive and will then notify the servicer of the award amount. Finally, the servicer will, before any funds are disbursed, submit an updated plan detailing how it will use the awarded funds to preserve jobs at that facility based on the actual amount of the award. The awarded amount will subsequently be disbursed to the servicer.

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Authorizing Statute(s): PL: Pub.L. 111 - 152 458(a)(7) Name of Law: HEA as Amended by SAFRA Act
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 152 485(a)(7) Name of Law: HEA as Amended by SAFRA

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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:
	75 FR 33797	06/15/2010
30-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 33797	06/15/2010
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
SAFRA Act Application for Payments to Loan Servicers	NA	SAFRA Application

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ICR Summary of Burden

	Total Approved	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	37	0	37	0	0	0
Annual Time Burden (Hours)	1,739	0	1,739	0	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: No

Burden Reduction Due to:

Short Statement: This is a new data collection required under the SAFRA Act, and all burden is considered new.

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Annual Cost to Federal Government: $25,000,000

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

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Yes

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

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

Is this ICR related to the Pandemic Response? Uncollected

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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: 06/15/2010

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