B-310777
December 6, 2007
The Honorable EdwardM. Kennedy
Chairman
The Honorable Michael B. Enzi
Ranking Minority Member
Committee on Health, Education, Labor, and Pensions
United StatesSenate
The Honorable GeorgeMiller
Chairman
The Honorable Howard P. Buck McKeon
Ranking Minority Member
Committee on Education and Labor
House of Representatives
Subject: Department of Education: Federal Perkins Loan Program, Federal FamilyEducation Loan Program, and William D. Ford Federal Direct Loan Program
Pursuant to section801(a)(2)(A) of title 5, United States Code, this is our report on a major rulepromulgated by the Department of Education (Education), entitled FederalPerkins Loan Program, Federal Family Education Loan Program, and William D.Ford Federal Direct Loan Program (RIN: 1840-AC89). We received the rule on November 21, 2007. It was published in the Federal Register as a final rule on November 1, 2007, and has an effective date of July 1, 2008. 72 Fed. Reg. 61,960.
The final rule makes a number of changes to the federalloan programs authorized under title IV of the Higher Education Act of1965. 20 U.S.C.sect. 10011140d. These changes are meant to strengthen andimprove the administration of the programs.This final rule also incorporates certain statutory changes enacted inthe College Cost Reduction and Access Act.Pub. L. No. 110-84, 121 Stat. 784 (Sept. 27, 2007).
Enclosed is our assessment of Educations compliance withthe procedural steps required by section 801(a)(1)(B)(i) through (iv) of title5 with respect to the rule. Our reviewindicates that Education complied with the applicable requirements.
If you have any questions about this report, pleasecontact Michael R. Volpe, Assistant General Counsel, at (202) 512-8236.
signed
Robert J. Cramer
Associate General Counsel
Enclosure
cc: Elizabeth A.M. McFadden
Assistant General Counsel
for Division of Regulatory Services
Office of the General Counsel
Department of Education
ENCLOSURE
REPORT UNDER 5 U.S.C. sect.801(a)(2)(A) ON A MAJORRULE
ISSUED BY THE
DEPARTMENT OF EDUCATION
ENTITLED
"FEDERAL PERKINS LOAN PROGRAM,
FEDERAL FAMILY EDUCATION LOAN PROGRAM, AND
WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM"
(RIN: 1840-AC89)
(i) Cost-benefit analysis
The Department of Education (Education) analyzed the costsand benefits of this final rule. Educationdetermined that of the regulatory changes in this final rule not implementingthe College Cost Reduction and Access Act, Pub. L. No. 110-84, 121Stat.784 (Sept.27, 2007) (CCRAA), only the mandatory assignmentof defaulted Perkins Loans will have a substantial economic effect, with animpact of approximately $23million annually. Education estimates that the provisions ofthis final rule implementing CCRAA which reduce costs will decrease federalcosts by $23.3 billion over fiscal years 2007 to 2012. Education also estimates that the provisionsof this final rule implementing CCRAA which expand benefits will increasefederal costs by $5.9 billion over fiscal years 2007 to 2012.
(ii) Agency actions relevant to the Regulatory FlexibilityAct, 5 U.S.C. sections603605, 607, and 609
Education concluded that this final rule will not have asignificant economic impact on a substantial number of small entities.
(iii) Agency actions relevant to sections 202205 ofthe Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections15321535
Education did not include an analysis of this final ruleunder the Act in its submission to the Comptroller General. Education noted that the preparation of awritten statement under section 202 of the Act was not applicable to thisrule.
(iv) Other relevant information or requirements underacts and executive orders
Administrative Procedure Act, 5 U.S.C. sections551 etseq.
Education promulgated this final rule, in part, under thenotice-and-comment procedures found in the Administrative Procedures Act. 5 U.S.C. sect. 553. Education published a Notice of ProposedRulemaking on June 12, 2007. 72 Fed. Reg. 32,410. Education responded to the comments itreceived in the final rule. 72 Fed.Reg.61,96290. Educationdetermined that it was unnecessary to conduct notice-and-comment procedures forthe parts of this final rule that merely reflect statutory changes of the CCRAAbecause these parts of the rule do not involve agency discretion.
Paperwork Reduction Act, 44 U.S.C. sections35013520
This final rule contains information collectionrequirements that the Office of Management and Budget (OMB) reviewed under theAct. Education is requesting furthercomment on paperwork associated with OMB Control Number 1845-0019. For the paperwork associated with OMB ControlNumber 1845-0020, Education estimates that the burden will increase by 1,260hours for guaranty agencies and reduce it by 2,880 hours for lenders and theirservicers. For the paperwork associatedwith OMB Control Number 1845-0080, Education estimates that the burden willincrease by 1,500 hours. For thepaperwork associated with OMB Control Number 1845-0005 and 1845-011, Educationestimates that the burden will increase by 1,000 hours. For the paperwork associated with OMB ControlNumber 1845-0020, Education estimates that the burden will increase by 1,260hours. A new information collection willbe submitted to OMB by January 30, 2008, and has an estimated burden of 1,000 hours.
Statutory authorization for the rule
Education promulgated this final rule under the authorityof sections 10711087-2 and sections 1087aa1087hh of title 20, United StatesCode.
Executive Order No. 12,866
Because it will have an annual effect on the economy ofmore than $100 million, Education determined that this final rule iseconomically significant under the Order and subject to OMB review.
