[Federal Register Volume 67, Number 31 (Thursday, February 14, 2002)]
[Notices]
[Pages 6909-6910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3600]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE


Information Collection; Submission for OMB Review; Comment 
Request

AGENCY: Corporation for National and Community Service.

ACTION: Notice.

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SUMMARY: The Corporation for National and Community Service 
(hereinafter the ``Corporation'') has submitted a public information 
collection request (ICR) to the Office of Management and Budget (OMB) 
for review and approval in accordance with the Paper Reduction Act of 
1995, Public Law 104-13, (44 U.S.C. Chapter 35). Copies of this ICR, 
with applicable supporting documentation, may be obtained by calling 
the Corporation for National and Community Service, Bruce Kellogg, at 
(202) 606-5000, extension 526. Individuals who use a telecommunications 
device for the deaf (TTY-TDD) may call (800) 833-3722 between the hours 
of 9 a.m. and 5 p.m. Eastern Standard Time, Monday through Friday.
    Comments should be sent to the Office of Information and Regulatory 
Affairs, Attn: Ms. Brenda Aguilar, OMB Desk Officer for the Corporation 
for National and Community Service, Office of Management and Budget, 
Room 10235, Washington, DC 20503, within 30 days from the date of 
publication in this Federal Register.
    The OMB is particularly interested in comments which:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Corporation, including whether the information will have practical 
utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Propose ways to enhance the quality, utility and clarity 
of the information to be collected; and
     Propose ways to minimize the burden of the collection of 
information on those who are to respond, including the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology, e.g., 
permitting electronic submissions of responses.
    An ICR document has been submitted to OMB for consideration 
concerning two forms, each a proposed revision to an earlier OMB-
approved form. They are:
    (1) The Forbearance Request Form (OMB #3045-0030), and
    (2) the Interest Accrual Form (OMB #3045-0053).
    These are the documents by which AmeriCorps members first request 
postponement, during their term of service, of their obligation to make 
payments on qualified student loans and then access the interest 
payment benefit that they have earned by successfully completing their 
service. Both forms are important for AmeriCorps members who have 
outstanding qualified student loans during their period of national 
service.
    The document was published in the Federal Register on November 14, 
2001, for a 60-day pre-clearance public comment period. Only one 
organization, a loan servicing organization, requested a copy of the 
document. Four of its suggestions concerning the Interest Accrual Form 
were incorporated into the version now being presented to OMB for 
consideration. Three other suggestions were not incorporated, mainly 
due to space considerations and the Corporation's belief that the time 
allotted for forwarding the form will not cause undue delay.
    Each form will be individually discussed below.

A. Forebearance Request Form

    Type of Review: Renewal.
    Agency: Corporation for National and Community Service.
    Title: Forbearance Request Form.
    OMB Number: OMB #3045-0030.
    Agency Number: None.
    Affected Public: AmeriCorps members and the holders of their 
qualified student loans.
    Total Respondents: 6,500 annually.
    Frequency: Average of once per year of national service per loan.
    Average Time Per Response: Ten minutes for the AmeriCorps member to 
complete the form.
    Estimated Total Burden Hours: 1083 hours.
    Total Burden Cost (capital/startup): None.
    Total Burden Cost (operating/maintenance): None.

Description

    AmeriCorps members may request a suspension of their obligation to 
repay most qualified student loans not in default during their service 
period. The purpose of the forbearance is to accommodate the minimal 
living allowance they receive while they complete their term of 
service, although interest continues to accrue during this period.
    Currently, AmeriCorps members use an OMB approved form entitled 
Forbearance Request for National Service to obtain certification that 
they are in an approved national service position. The form also serves 
as the borrower's official request to the loan companies for 
forbearance. Since forbearance is granted by the loan holder and not 
the Corporation, the form requests of the loan holder that a 
forbearance be approved for the national service. The Corporation's 
role is to verify that the borrower is an AmeriCorps member and is 
eligible for

[[Page 6910]]

this mandatory forbearance on qualified student loans. An AmeriCorps 
member completes one part of the form and sends it to the office of the 
National Service Trust. The Trust provides written verification that 
the borrower is in an approved national service position, then forwards 
the form to the loan holder at the address provided by the AmeriCorps 
member. The loan holder will act upon the request.
    This form has been adopted by many of the larger loan holders 
(e.g., Sallie Mae) and is given to their borrowers with the loan 
holders' own logos at the top of the form. Indeed, the form was 
originally developed with the assistance of Sallie Mae and 
representatives of several student loan associations. Having a separate 
form for forbearance based on AmeriCorps service clearly distinguishes 
it from forbearance requests based on one of the other conditions for 
which a borrower may be eligible (e.g., military service, employment in 
certain low income areas, student status).
    Several other loan holders have chosen to modify their own existing 
forbearance request forms by including an additional option-- 
``AmeriCorps service'' or ``national service'' --to the choices already 
available. The Corporation verifies national service participation 
using all types of forms presented to it, on a loan holder's unique 
form as well as the OMB approved form.
    The form needs some minor revisions to clarify certain sections and 
to facilitate processing of the information; for example, to add loans 
made by a state agency to the list of qualified loans, add a statement 
of purpose to the member's section, identify the service dates as 
mandatory, limit the form to a single loan holder each, and add the 
National Service Trust's toll-free number.
    The Corporation seeks to continue using this particular form, 
albeit in a slightly revised version. This is a voluntary form. It is 
one way to provide verification to a loan holder that one of its 
borrowers is eligible for the mandatory forbearance, while at the same 
time allowing the borrower to request the forbearance from the loan 
company. The Corporation will continue its policy of verifying 
AmeriCorps participation on any form the loan holder wishes to use. The 
current form is due to expire March 31, 2002.

Analysis of Comments Received During the Public Comment Period

    One comment was received from a loan servicing organization. It 
concerned the proposed change to require a separate forbearance request 
form for each lender. It commented favorably that although the change 
appeared to increase the burden on the borrower it was likely to have 
the opposite effect. The loan servicer noted that when all loan holders 
were listed on one form, as before, some loan holders may not have 
received the form timely or at all; and some of the borrower's loans 
may have become delinquent as a consequence.

B. Interest Accrual Form

    Type of Review: Renewal.
    Agency: Corporation for National and Community Service.
    Title: Interest Accrual Form.
    OMB Number: OMB #3045-0053.
    Agency Number: None.
    Affected Public: AmeriCorps members and the holders of their 
qualified student loans.
    Total Respondents: 6,500 annually.
    Frequency: Average of once per year of national service per loan
    Average Time Per Response: 10 minutes, total (three minutes for the 
AmeriCorps member to complete the form and seven minutes for the loan 
holder).
    Estimated Total Burden Hours: 1083 hours.
    Total Burden Cost (capital/startup): None.
    Total Burden Cost (operating/maintenance): None.

Description

    The Corporation pays all or a portion of the interest that accrues 
during a period of national service for those who successfully complete 
their service and have had their loans in forbearance during the 
service. Using the current form, AmeriCorps members complete the top 
section and indicate their dates of service. Then they mail the form to 
the loan holder who indicates the total amount of interest that accrued 
during the service period, or indicates a daily accrual rate. The loan 
holder also adds the address where the payment should be sent and 
returns the form to the National Service Trust. When the Corporation 
receives this information, it is reviewed for accuracy and is either 
paid or returned to the loan holder or lender for additional 
information.
    The revisions address the most common causes for delays in 
processing interest payments. The changes modify the title for 
consistency, reduce the number of days prior to completion of service 
for submitting the form, more clearly identify the member's address 
information, identify the service dates as essential, add loans made by 
a state agency to the list of qualified loans, request loan type 
information and if more than one loan is cited request loan numbers, 
clarify the language regarding grace period information, add to the 
lender's certification a statement that the loans cited are in 
forbearance, and add a space for the lender's fax number. The current 
form is due to expire March 31, 2002.

Analysis of Comments Received During the Public Comment Period

    One response was received from a loan servicing organization. It 
suggested a different wording for the lender's certification and for 
the identification of a grace period, which wording the Corporation 
agreed was clearer and incorporated into the form. It objected to 
changing the daily interest rate from a dollar amount to a percentage 
as a complication. We agreed, and we also accepted a recommendation to 
restore the list of examples of qualified student loans.
    The loan servicer argued that decreasing the number of days prior 
to the member's completion date for sending in the form from 90 to 30 
could delay payment until some time after the completion of service. In 
fact, payment cannot be made until the member's education award is in 
place. The purpose of this change is simply to decrease the number of 
forms that cannot be processed because the education award has not yet 
been granted. However, because most awards are now processed 
electronically much faster than before, we do not expect this change to 
cause any appreciable delay in making interest payments.
    Another comment questioned giving the loan type and payoff amount 
in the space available, if the borrower has multiple eligible loan 
types. It was also thought a statement of purpose for this information 
would be useful. We concur but are constrained by space limitations. 
With the addition of loans made to members by state agencies, 
verification of qualified loan types becomes more subject to scrutiny, 
and a statement of the loan type will facilitate processing of the 
payment request. Similarly, providing the payoff amount, as is 
routinely done on the Voucher and Payment Request Form, should help 
avoid the delays caused by awaiting confirmation of that figure.

    Dated: February 7, 2002.
Charlene Dunn,
Director, National Service Trust.
[FR Doc. 02-3600 Filed 2-13-02; 8:45 am]
BILLING CODE 6050-$$-P