Section 682.200 & 682.602 Eligible Lender Trustee

Section 682.200 and 682.602 – Eligible Lender Trustee

The proposed changes implement the HEA Extension Act by amending the definition of lender to prohibit a FFEL lender from entering into an eligible lender trustee (ELT) relationship with a school or a school-affiliated organization as of September 30, 2006, but allowing current relationships to continue. The proposed changes also add a new definition of school-affiliated organization, and add a new §682.602 to apply most of the same restrictions that are imposed on FFEL school lenders by the HERA to school and school-affiliated ELT arrangements as of January 1, 2007. The entities affected by these proposed changes are lenders, ELTs, schools and school-affiliated organizations.

# of Institutions of Higher Education: 5,665

X % affected by ELT relationships .01

# of Affected Institutions 57

X estimated # of burden hours to maintain

FFEL compliance 1,000

# of Burden Hours for Affected Institutions 57,000

# of Affected Institutions 57

X # of School-Affiliated Organizations

Per affected school 1.5

# of Affected School-Affiliated Organizations 86

X estimated # of burden hours to maintain

FFEL compliance 1,000

# of Burden Hours for Affected Institutions 86,000

Affected Entity:

INSTITUTIONS: 57,000 hours

For-profit: 19,000

Not for profit: 19,000

State: 19,000

SCHOOL-AFFILIATED ORGANIZATIONS 86,000 hours

For-profit: 29,000

Not for profit: 28,000

State: 29,000

Respondents, Responses and Burden Hours:

# of Respondents # of Responses # Hrs/Response #Hrs

Burden

143 143 1000 = 143,000

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