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Subject: Loan Verification Certificate for Special Direct Consolidation Loans

Publication Date: May 15, 2012

Posted Date: May 15, 2012

Subject: Loan Verification Certificate for Special Direct Consolidation Loans

FR Type: Notice


[Federal Register Volume 77, Number 94 (Tuesday, May 15, 2012)]
[Notices]
[Pages 28572-28573]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11723]
 
 
====================================================
 
DEPARTMENT OF EDUCATION
 
Notice of Submission for OMB Review; Federal Student Aid; Loan 
Verification Certificate for Special Direct Consolidation Loans
 
SUMMARY: This Loan Verification Certificate (LVC) will serve as the 
means by which the U.S. Department of Education (the Department) 
collects certain information from commercial holders of Federal Family 
Education Loan (FFEL) Program loans that a borrower wishes to 
consolidate into the William D. Ford Federal Direct Loan (Direct Loan) 
Program under a special initiative announced by the White House in an 
October 25, 2011 fact sheet titled ``Help Americans Manage Student Loan 
Debt.'' Loans made under this initiative are known as Special Direct 
Consolidation Loans. The information collected on the LVC includes the 
amount needed to pay off the loans that the borrower wants to 
consolidate and other information required by the Department to make 
and service a Special Direct Consolidation Loan.
 
DATES: Interested persons are invited to submit comments on or before 
June 14, 2012.
 
ADDRESSES: Written comments regarding burden and/or the collection 
activity requirements should be electronically mailed to 
ICDocketMgr@ed.gov or mailed to U.S. Department of Education, 400 
Maryland Avenue SW., LBJ, Washington, DC 20202-4537. Copies of the 
proposed information collection request may be accessed from http://edicsweb.ed.gov, by selecting the ``Browse Pending Collections'' link 
and by clicking on link number 04857. When you access the information 
collection, click on ``Download Attachments'' to view. Written requests 
for information should be addressed to U.S. Department of Education, 
400 Maryland Avenue SW., LBJ, Washington, DC 20202-4537. Requests may 
also be electronically mailed to ICDocketMgr@ed.gov or faxed to 202-
401-0920. Please specify the complete title of the information 
collection and OMB Control Number when making your request.
    Individuals who use a telecommunications device for the deaf (TDD) 
may call the Federal Information Relay Service (FIRS) at 1-800-877-
8339.
 
SUPPLEMENTARY INFORMATION: Section 3506 of the Paperwork Reduction Act 
of 1995 (44 U.S.C. Chapter 35) requires that Federal agencies provide 
interested parties an early opportunity to comment on information 
collection requests. The
 
[[Page 28573]]
 
Acting Director, Information Collection Clearance Division, Privacy, 
Information and Records Management Services, Office of Management, 
publishes this notice containing proposed information collection 
requests at the beginning of the Departmental review of the information 
collection. The Department of Education is especially interested in 
public comment addressing the following issues: (1) Is this collection 
necessary to the proper functions of the Department; (2) will this 
information be processed and used in a timely manner; (3) is the 
estimate of burden accurate; (4) how might the Department enhance the 
quality, utility, and clarity of the information to be collected; and 
(5) how might the Department minimize the burden of this collection on 
the respondents, including through the use of information technology. 
Please note that written comments received in response to this notice 
will be considered public records.
    Title of Collection: Loan Verification Certificate for Special 
Direct Consolidation Loans.
    OMB Control Number: 1845-0111.
    Type of Review: Extension.
    Total Estimated Number of Annual Responses: 62,633.
    Total Estimated Number of Annual Burden Hours: 3,131,650.
    Abstract: The purpose of the special consolidation initiative is to 
encourage borrowers who have both commercially-held FFEL Program loans 
and other loans that are held by the Department (either Direct Loan 
Program loans or FFEL Program loans previously sold to the Department 
by a FFEL Program lender) to consolidate their commercially-held FFEL 
Program loans into the Direct Loan Program. Currently, these borrowers 
have at least two loan servicers and are required to make at least two 
separate monthly payments on their federal education loans. This makes 
repayment more difficult and increases the likelihood of a borrower 
becoming delinquent or going into default. For a borrower who has both 
commercially-held FFEL Program loans and Department-held loans, 
consolidation of the commercially-held loans into the Direct Loan 
Program will simplify repayment by allowing the borrower to make a 
single monthly loan payment to one entity (a federal loan servicer 
under contract to the Department), thereby reducing the likelihood of 
delinquency or default. As an incentive for borrowers to consolidate 
under the special initiative, the Department is offering reduced 
interest rates on Special Direct Consolidation Loans.
 
    Dated: May 10, 2012.
Kate Mullan,
Acting Director, Information Collection Clearance Division, Privacy, 
Information and Records Management Services, Office of Management.
[FR Doc. 2012-11723 Filed 5-14-12; 8:45 am]
BILLING CODE 4000-01-P
 


Last Modified: 05/14/2012