Repeal of the William D. Ford Federal Direct Loan Program Subsidized Usage Limit Restriction, 31432-31438 [2021-12384]

Agencies

• DEPARTMENT OF EDUCATION

[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 [www.gpo.gov]
[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: [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:

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 www.bls.gov/oes/current/oes_nat.htm#00-0000. 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 www.bls.gov/oes/current/oes_nat.htm#11-0000.
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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 (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 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
------------------------------------------------------------------------
1 percent...................................................        $852
2 percent...................................................       1,073
5 percent...................................................       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%              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................
------------------------------------------------------------------------
                Category                               Costs
                                         -------------------------------
                                                7%              3%
------------------------------------------------------------------------
Costs to modify Government systems for              $.06            $.05
 administering student loans to
 implement repeal of SULA...............
------------------------------------------------------------------------
                Category                             Transfers
                                         -------------------------------
                                                7%              3%
------------------------------------------------------------------------
Increased transfers of subsidized loans            $96.2           $98.7
 to eligible students...................
Restoration of subsidized loan benefits            $85.4           $82.7
 to affected borrowers..................
------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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. 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 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.

                        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 
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    Electronic Access to This Document: The official version of this 
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    You may also view this document in text or PDF at the following 
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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

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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.
* * * * *


Sec.  685.200   [Amended]

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2. Section 685.200 is amended by:
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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.''.
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b. Removing paragraphs (a)(2)(i)(A) and (B) and (f).
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c. Removing the parenthetical authority citation at the end of the 
section.


Sec.  685.304   [Amended]

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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.
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c. Removing paragraphs (a)(6)(xvi) and (b)(4)(xii).
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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