Tag: collection

  • Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Borrower Defense to Loan Repayment Universal Forms

    Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Borrower Defense to Loan Repayment Universal Forms

    A Notice by the Education Department on 05/19/2025

    Department of Education[Docket No.: ED-2025-SCC-0002]

    AGENCY:

    Federal Student Aid (FSA), Department of Education (ED).

    ACTION:

    Notice.

    SUMMARY:

    In accordance with the Paperwork Reduction Act (PRA) of 1995, the Department is proposing a revision of a currently approved information collection request (ICR).

    DATES:

    Interested persons are invited to submit comments on or before June 18, 2025.

    ADDRESSES:

    Written comments and recommendations for proposed information collection requests should be submitted within 30 days of publication of this notice. Click on this link www.reginfo.gov/​public/​do/​PRAMain to access the site. Find this information collection request (ICR) by selecting “Department of Education” under “Currently Under Review,” then check the “Only Show ICR for Public Comment” checkbox. Reginfo.gov provides two links to view documents related to this information collection request. Information collection forms and instructions may be found by clicking on the “View Information Collection (IC) List” link. Supporting statements and other supporting documentation may be found by clicking on the “View Supporting Statement and Other Documents” link.

    FOR FURTHER INFORMATION CONTACT:

    For specific questions related to collection activities, please contact Carolyn Rose, 202-453-5967.

    SUPPLEMENTARY INFORMATION:

    The Department 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: Borrower Defense to Loan Repayment Universal Forms.

    OMB Control Number: 1845-0163.

    Type of Review: A revision of a currently approved ICR.

    Respondents/Affected Public: Individuals and Households.

    Total Estimated Number of Annual Responses: 83,750.

    Total Estimated Number of Annual Burden Hours: 217,750.

    Abstract: On April 4, 2024 the U.S. Court of Appeals of the Fifth Circuit granted a preliminary injunction against 34 CFR 685.400 et seq. (“2023 Regulation”) enjoining the rule and postponing the effective date of the regular pending final judgment in the case. The current Borrower Defense to Repayment application and related Request for Reconsideration are drafted to conform to the enjoined provisions of the 2023 Regulation. This request is to revise the currently approved information collection 1845-0163 to comply with the regulatory requirements of the borrower defense regulations that are still in effect, 34 CFR 685.206(e) (“2020 Regulation”), 34 CFR 685.222 (“2016 Regulation”), and 34 CFR 685.206(c) (“1995 Regulation”) (together, the “current regulations”). These regulatory requirements are distinct from the 2023 Regulation’s provisions. The revision is part of contingency planning in case the 2023 Regulation is permanently struck down. The Department of Education (“the Department”) is attaching an updated Borrower Defense Application and application for Request for Reconsideration. The forms will be available in paper and electronic forms on studentaid.gov and will provide borrowers with an easily accessible and clear method to provide the information necessary for the Department to review and process claim applications. Also, under the current regulations, the Department will no longer require a group application nor group reconsideration application.

    Dated: May 13, 2025.

    Brian Fu,

    Program and Management Analyst, Office of Planning, Evaluation and Policy Development.

    [FR Doc. 2025-08857 Filed 5-16-25; 8:45 am]

    BILLING CODE 4000-01-P
    Published Document: 2025-08857 (90 FR 21296)

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  • Debt Collection on Defaulted Student Loans to Restart in May

    Debt Collection on Defaulted Student Loans to Restart in May

    J. David Ake/Getty Images

    The Education Department will resume collecting on defaulted student loans early next month, restarting a system that’s been on hold since spring 2020, the agency announced Monday.

    Starting May 5, the department will withhold tax refunds or benefits such as Social Security from borrowers who are in default. Later this summer, the department will begin garnishing the wages of defaulted borrowers, a move consumer protection advocates have criticized as out of control.

    About 38 percent of the nearly 43 million student loan borrowers are current on their payments, and a record number of borrowers are at risk of or in delinquency and default, the department said Monday. Borrowers default when they miss at least 270 days of payments.

    When the Biden administration restarted student loan payments in September 2023, it offered a one-year grace period for borrowers during which those who didn’t make payments were spared the worst financial consequences, including default.

    Research into borrowers who default and other data shows they typically fall behind on their payments because other loans take a higher priority or they can’t afford their payments, among other reasons. And borrowers in default usually don’t have the ability to repay their loans. A survey from the Pew Charitable Trusts found that unemployed borrowers were twice as likely to default compared to those who worked full-time. Additionally, borrowers who didn’t complete the education they took out loans to pay for are more likely to default than completers.

    “The folks who fall behind on their payments are those who are least well served by the higher education and repayment systems,” said Sarah Sattelmeyer, project director for education, opportunity and mobility in the higher education initiative at New America, a left-leaning think tank. “A lot of those folks did not receive a return on their higher education investment … These aren’t people who overwhelmingly do not want to pay their loans.”

    About 5.3 million borrowers have defaulted on their loans, and many have been in default for more than seven years, according to the department. Another four million borrowers are in “late-stage delinquency,” or 91 to 180 days behind on their payments. The department expects about 10 million or nearly one-quarter of borrowers to default by the fall.

    “We think that the federal student loan portfolio is headed toward a fiscal cliff if we don’t start repayment and collections,” a senior department official said on a press call Monday. “American taxpayers can no longer serve as collateral for student loans.”

    The official didn’t take questions, and a department spokesperson referred reporters to Education Secretary Linda McMahon’s recent op-ed in The Wall Street Journal. She’s also slated to appear on CNBC and Fox Business to discuss the restart in collections.

    In her public statements Monday, McMahon blamed the Biden administration and colleges for the current situation.

    “Colleges and universities call themselves nonprofits, but for years they have profited massively off the federal subsidy of loans, hiking tuition and piling up multibillion-dollar endowments while students graduate six figures in the red,” she wrote in the Journal.

    Beyond the immediate restart, the senior department official said the department is planning to work with Congress to fix the system so that students can afford their loan payments and to lower the cost of college.

    Former Biden administration officials, borrowers and debt-relief advocates have said that efforts to forgive student loans were a way to address systemic failures in the student loan system and to help vulnerable borrowers who were likely to never repay their loans.

    The department is planning a “robust communication strategy,” the senior official said, to spread the word to borrowers and share information about their options, such as enrolling in an income-driven repayment plan or loan rehabilitation.

    Currently, about 1.8 million borrowers have pending applications for an IDR plan, but the department intends to clear that backlog over the next few weeks, the official said. The department also is planning to email borrowers individually about their options. The outreach plan also includes extending the loan servicers’ call center hours on weekends and weeknights.

    Sattelmeyer, who worked in the Office of Federal Student Aid during the Biden administration, said it will be important to ensure borrowers have access to information and the tools such as IDR plans to either get out of or avoid default and then stay on track. She questioned whether the department has enough staff to restart collections effectively, given the recent mass layoffs at the agency.

    “The issue is that the system is in disarray right now and there have not been a consistent set of options available for borrowers at the same time that we’re turning back on collections,” she said. “At the end of the day, I think the most important thing is that it does not feel like we have the resources and the staffing in place to make this go smoothly and to ensure that borrowers have support and access to resources and tools.”

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  • U.S. can improve data collection on AI/AN college students

    U.S. can improve data collection on AI/AN college students

    Native American student enrollment has been on the decline for the past decade, dropping 40 percent between 2010 and 2021, a loss of tens of thousands of students. Of the 15.4 million undergraduate students enrolled in fall 2021, only 107,000 were American Indian or Alaska Native, according to the National Center for Education Statistics.

    Researchers argue that the small population is not as small as it seems, however, due in part to federal practices of collecting data on Native populations, according to a new report from the Brookings Institute, the Institute for Higher Education Policy and the Urban Institute.

    Federal measures of race and ethnicity in postsecondary education data undercount the total population of Native American students, in part due to insufficient sampling, lack of data on tribal affiliation and aggregation practices that erase Native identities, researchers wrote.

    “For too long, Native American students have been severely undercounted in federal higher education data, with estimates suggesting that up to 80 percent are classified as a different race or ethnicity,” Kim Dancy, director of research and policy at IHEP, told Inside Higher Ed. “This chronic data collection failure renders Native students invisible in federal data systems and prevents clear assessments of the resources necessary to support student success.”

    In May 2024, the federal government announced new standards for collecting data on American Indian and Alaska Native (AI/AN) populations, which would improve the inclusivity and accuracy of data for students from these groups.

    The Obama administration introduced similar changes in 2016, but they were never implemented under the first Trump administration in 2017. Researchers worry a similar pattern may follow under the second Trump administration.

    “The second Trump Administration has demonstrated reluctance to prioritize data transparency, which could further jeopardize these efforts and stall progress,” Dancy said. “Without strong implementation of these standards, Native students will continue to be overlooked in federal policy decisions.”

    “It is critical that the Trump administration allow the revised SPD 15 standards to remain in effect, and for officials at ED and elsewhere throughout government to implement the standards in a way that provides Native American students and communities with the same high-quality data that all Americans should be able to access,” report authors wrote.

    Data Analysis at Risk

    The Education Department has canceled dozens of contracts in recent weeks, tied to the Trump administration’s Department of Government Efficiency. Many of these contracts related to student data analysis in both K-12 and postsecondary education.

    State of play: Degree attainment for Native Americans is bleak, according to data presently available. Twenty-six percent of Native American adults in the U.S. hold an associate degree or higher, and only 16 percent hold a bachelor’s degree or higher, according to 2024 data from the U.S. Census Bureau. In comparison, bachelor’s degree attainment by all other races is higher: 20 percent for Latino, 25 percent for Black, 38 percent for multiracial, 40 percent for white and 61 percent for Asian American students.

    Of the 58 percent of American Indian/Alaska Native students who enrolled in higher education beginning in 2009, over half (55 percent) didn’t earn a credential. In 2023, the National Student Clearinghouse Research Center reported six-year completion rates had fallen two percentage points among Native Americans, to 47.5 percent—21 percentage points lower than their white peers and 27 percentage points lower than Asian students in the 2016 cohort.

    Data collection is not the only barrier to Native student representation and completion in higher education, researchers wrote, “but until data on Native American students are more accurate, accessible, and meaningful, it will prove difficult to address these issues,” which include affordability, disparities in access and retention, and a lack of culturally informed wraparound services.

    Digging into data: Data collection at the U.S. Department of Education has several problems that disadvantage Native students more than other groups, according to the report. Native student data is often “topcoded” as Hispanic or Latino, essentially erasing Native student identities, filed under “more than one race” without further detail, or coded without tribal affiliation or citizenship.

    While topcoding students as Latino or Hispanic or categorizing learners as more than one race applies to all racial categories, Native American individuals are categorized this way at a higher rate than any other major group, which diminishes their representation.

    Additionally, ED independently makes decisions to not disaggregate or provide detailed data on racial and ethnic subgroups, such as topcoding Latino or Hispanic students, that is not modeled at other federal agencies, such as the Census Bureau and the Bureau of Labor Statistics.

    The last time the Office of Management and Budget revised data-reporting processes for colleges and universities, which allowed individuals to identify as more than one racial group, final implementation took place in the 2010–11 academic year.

    In the decade and a half since, Native American student enrollment has declined, and researchers say, “The limitations of ED’s student data made it challenging to discern whether this decline represented an actual change in enrollment trends or was due to the new reporting practices’ undercounting of Native college students.”

    A lack of data impacts institutions, tribes and others tracking student outcomes, reducing opportunities to support learners, and the challenges may perpetuate continued misperceptions of Native students’ journeys through higher education.

    New policies: In 2024, OMB created new federal standards around collecting data on race and ethnicity that would enhance data collection when it comes to Native populations. Federal agencies are required to create plans for implementation by September 2025 and be in full compliance by March 2029, leaving the Trump administration responsible for implementation of the revised standards.

    OMB outlined three approaches for agencies on how they might consider presentation of aggregated data on multiracial populations:

    • Alone or in combination, which includes students who identify with more than one racial or ethnic group in all reporting categories.
    • Most frequent multiple responses, reporting on as many combinations of race and ethnicity as possible that meet population thresholds.
    • Combined multiracial or multiethnic respondents into a single category.

    This third option would be most harmful to Native students, because it would perpetuate undercounts, researchers caution, and therefore policymakers should avoid it.

    Moving forward, report authors recommend ED and Congress collect and publish disaggregated data on Native American students, partner with tribal governments to increase data transparency and provide guidance and resources to institutions to improve their quality of data.

    “We encourage the Education Department to continue seeking input from Native communities, including voices that have been historically excluded from policy-development efforts,” Dancy said. “Accurate data alone won’t eliminate the structural inequities Native students face. But without the data, we cannot begin to dismantle the inequities.”

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