[Federal Register Volume 76, Number 149 (Wednesday, August 3, 2011)]
[Notices]
[Pages 46774-46781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19607]
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DEPARTMENT OF EDUCATION
Privacy Act of 1974; System of Records--Federal Student Aid
Application File
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of altered system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended
(Privacy Act), 5 United States Code (U.S.C.) 552a, the Acting Chief
Operating Officer for Federal Student Aid (FSA) of the U.S. Department
of Education (the Department) publishes this notice proposing to revise
the system of records for the Federal Student Financial Aid Application
File (18-11-01), 64 Federal Register (FR) 30159-30161 (June 4, 1999),
as corrected by 64 FR 72384, 72407 (December 27, 1999), as corrected by
65 FR 11294-11295 (March 2, 2000), as corrected by 66 FR 18758 (April
11, 2001), as altered by 74 FR 68802-68808 (December 29, 2009). This
system of records contains information provided by applicants for Title
IV of the Higher Education Act of 1965, as amended, (HEA) program
assistance, which is collected from the Free Application for Federal
Student Aid (FAFSA). Among other purposes described in this notice, the
information collected is maintained in order to determine an
applicant's eligibility for the Federal student financial assistance
programs authorized by Title IV of the HEA; make a loan, grant, or
scholarship; and verify the identity of the applicant.
This altered system of records includes records on individuals who
are applying for Title IV, HEA program assistance. The records contain
individually identifying information about an applicant, including, but
not limited to: An applicant's name, address, Social Security number
(SSN), date of birth, citizenship status, status as a veteran, driver's
license number, marital status, and income and asset information. This
altered system also contains information provided by the parent(s) of a
dependent applicant, including, but not limited to: Name, date of
birth, marital status, SSN, highest level of schooling completed, e-
mail address, and income and asset information. This altered system of
records also contains information about spousal income and asset
information of a married applicant.
This notice proposes to expand the categories of individuals on
whom records are maintained, to add two new purposes to the system of
records, to expand a programmatic routine use disclosure, and to add a
new programmatic routine use disclosure that was inadvertently deleted
when the system of records was last altered. The notice would expand
the individuals covered by the system to include secondary school
students about whom requesting entities, such as schools, local
educational agencies, and other local and State agencies, submit
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information (e.g., name, date of birth, and zip code) to the Department
in order for the Department to provide these entities with the
student's FAFSA completion filing status to promote and encourage the
student to apply for Title IV, HEA program assistance, State
assistance, and aid awarded by institutions of higher education.
The notice also would add two new purposes to this system of
records, which would specify that the purposes of the system are (1) to
determine the eligibility of applicants for the award of State
postsecondary education assistance and for the award of aid by eligible
institutions of higher education or other entities designated by the
Secretary and to administer those awards, and (2) to promote and
encourage application for Title IV, HEA program assistance, State
assistance, and aid awarded by institutions of higher education or
other entities designated by the Secretary.
In addition, the notice proposes to expand a current programmatic
routine use disclosure to permit the Department's disclosure of FAFSA
completion information to a local educational agency (LEA) or secondary
school where the student is or was enrolled, or other State, local, and
private entities designated by the Secretary in order to facilitate and
promote FAFSA completion. Specifically, a current programmatic routine
use disclosure permits the Department to disclose a student's FAFSA
filing status only to the student's LEA and secondary school in order
to permit these entities to counsel the student about applying for
financial aid and to offer the student assistance with the completion
of the FAFSA. The Department proposes to expand this current
programmatic routine use disclosure so that the Department may make
disclosures for this same purpose to other local agencies, State
agencies, and other entities designated by the Secretary in an effort
to increase FAFSA completion rates within a State.
Finally, the Department proposes to add a new, programmatic routine
use disclosure to the system that was inadvertently deleted when the
system of records was last altered. This new routine use disclosure
would permit the Department to disclose records from this system of
records to State agencies, eligible institutions of higher education,
and other entities designated by the Secretary in order to permit them
to determine an applicant's eligibility for the award of State
postsecondary education assistance or for the award of aid by eligible
institutions of higher education or other entities designated by the
Secretary and to administer those awards.
DATES: We must receive your comments on or before September 2, 2011.
The Department filed a report describing the altered system of
records covered by this notice with the Chair of the Senate Committee
on Homeland Security and Governmental Affairs, the Chair of the House
Committee on Oversight and Government Reform, and the Administrator of
the Office of Information and Regulatory Affairs in the Office of
Management and Budget (OMB), on July 21, 2011. This altered system of
records will become effective at the later date of--(1) The expiration
of the 40-day period for OMB review on August 30, 2011; or (2)
September 2, 2011, unless the system of records needs to be changed as
a result of public comment or OMB review.
ADDRESSES: Address all comments about this altered system of records
to: Director, Application Processing Division, Program Management
Systems, Federal Student Aid, U.S. Department of Education, 830 First
Street, NE., room 63C4, Union Center Plaza (UCP), Washington, DC 20202.
If you prefer to send your comments by e-mail, use the following
address: [email protected].
You must include the term ``Federal Student Aid Application File''
in the subject line of your electronic message.
During and after the comment period, you may inspect all public
comments about this notice in room 63C5, Union Center Plaza (UCP), 6th
floor, 830 First Street, NE., Washington, DC 20202 between the hours of
8:00 a.m. and 4:30 p.m., Washington, DC time, Monday through Friday
except Federal holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply an appropriate accommodation or
auxiliary aid to an individual with a disability who needs assistance
to review the comments or other documents in the public rulemaking
record for this notice. If you want to schedule an appointment for this
type of accommodation or auxiliary aid, please contact the person
listed under FOR FURTHER INFORMATION CONTACT.
FOR FURTHER INFORMATION CONTACT: Director, Application Processing
Division, Program Management Systems, Federal Student Aid, U.S.
Department of Education, 830 First Street, NE., room 63C4, UCP,
Washington, DC 20202. Telephone: (202)377-3205. If you use a
telecommunications device for the deaf (TDD), you can call the Federal
Relay Service (FRS), toll free, at 1-800-877-8339.
Individuals with disabilities can obtain this document in an
accessible format (e.g., braille, large print, audiotape, or computer
diskette) on request to the contact person listed under this section.
SUPPLEMENTARY INFORMATION:
Introduction
The Privacy Act of 1974 (5 U.S.C. 552a(e)(4) and (11)) requires the
Department to publish in the Federal Register this notice of an altered
system of records. The Department's regulations implementing the
Privacy Act are contained in the Code of Federal Regulations (CFR) in
34 CFR part 5b.
The Privacy Act applies to information about an individual that is
maintained in a system of records from which information is retrieved
by a unique identifier associated with the individual, such as a name
or Social Security number (SSN). The information about each individual
is called a ``record,'' and the system, whether manual or computer-
based, is called a ``system of records.''
The Privacy Act requires each agency to publish a system of records
notice in the Federal Register and to submit, whenever the agency
publishes a new system of records or significantly alters an
established system of records, a report to the Administrator of the
Office of Information and Regulatory Affairs, OMB. Each agency is also
required to send copies of the report to the Chair of the Senate
Committee on Homeland Security and Governmental Affairs and the Chair
of the House of Representatives Committee on Oversight and Government
Reform.
A system of records is considered ``altered'' whenever an agency
expands the types or categories of information maintained,
significantly expands the types or categories of individuals about whom
records are maintained, changes the purpose for which the information
is used, changes the equipment configuration in a way that creates
substantially greater access to the records, or adds a routine use
disclosure to the system.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the official edition of the Federal Register and the
Code of Federal Regulations is available via the Federal Digital System
at: http://www.gpo.gov/fdsys. At this site you can view this document,
as well as all other documents of this Department published in the
Federal
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Register, in text or Adobe Portable Document Format (PDF). To use PDF
you must have Adobe Acrobat Reader, which is available free at the
site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
Dated: July 28, 2011.
James W. Runcie,
Acting Chief Operating Officer, Federal Student Aid.
For the reasons discussed in the preamble, the Acting Chief
Operating Officer, Federal Student Aid, of the U.S. Department of
Education (Department), publishes a notice of an altered system of
records to read as follows:
SYSTEM NUMBER:
18-11-01
SYSTEM NAME:
Federal Student Aid Application File.
SECURITY CLASSIFICATION:
None.
SYSTEM LOCATIONS:
Virtual Data Center (VDC), 2300 W. Plano Parkway, Plano, TX 75075
(Electronic records).
Vangent, 901 South 42nd Street, Mt Vernon, IL 62864 (Paper, Free
Application for Federal Student Aid (FAFSA) Applications Storage
Facility).
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
The Federal Student Aid Application File (the system), which is
part of the Department's Central Processing System (CPS), contains
records on students who apply for Federal student financial assistance
programs authorized by Title IV of the Higher Education Act of 1965, as
amended (HEA). This system also contains information on the parent(s)
of a dependent applicant and the spouse of a married applicant. In
addition, this system covers secondary school students about whom
requesting entities, such as schools, local educational agencies
(LEAs), and other local and State agencies, submit information (e.g.,
name, date of birth, and zip code) to the Department in order for the
Department to provide these entities with the student's Free
Application for Federal Student Aid (FAFSA) completion filing status to
promote and encourage the student to apply for Title IV, HEA program
assistance, State assistance, and aid awarded by institutions of higher
education.
CATEGORIES OF RECORDS IN THE SYSTEM:
This system of records contains information provided by applicants
for Title IV, HEA program assistance, on the FAFSA, including, but not
limited to, the applicant's name, address, Social Security number
(SSN), date of birth, telephone number, driver's license number, e-mail
address, citizenship status, marital status, legal residence, status as
a veteran, educational status, and financial data. This system also
contains information provided about the parent(s) of a dependent
applicant, including, but not limited to, the parent's highest level of
schooling completed, marital status, SSN, last name and first initial,
date of birth, e-mail address, number in household supported by the
parent, and income and asset information. For an applicant who is
married, this system of records also contains spousal income and asset
information.
While using this system to analyze its student population data for
verification selection via the Institutional Student Information Record
(ISIR) Analysis Tools (IA Tools) product, postsecondary institution(s)
attended by the applicant may create user defined fields with
institutional data that are saved to the system. These data elements
may consist of information that is privacy protected. Examples include,
but are not limited to: The student's grade point average or
information about a student's employment with the postsecondary
institution.
The system determines an applicant's expected family contribution
(EFC). The EFC is used by institutions to determine the student's
eligibility for Federal and institutional program assistance, and by
States to determine the student's eligibility for State grants. The
Department notifies the applicant of the results of his or her
application via the Student Aid Report (SAR). The Department provides
the institutions identified on the applicant's FAFSA with the ISIR,
which indicates whether there are discrepant or insufficient data,
school adjustments, or CPS assumptions that affect processing of the
FAFSA. Other information that the system includes, but is not limited
to: Secondary EFC, dependency status, Federal Pell Grant Eligibility,
duplicate SSN, selection for verification, Simplified Needs Test (SNT)
or Automatic Zero EFC (used for extremely low family income), CPS
processing comments, reject codes (explanation for applicant's FAFSA
not computing EFC), assumptions made with regard to the student's data
due to incomplete or inconsistent FAFSA data, financial aid
administrator's (FAA) adjustments including dependency status
overrides, and CPS record processing information (application receipt
date, transaction number, transaction process date, SAR Serial Number,
Compute Number, Data Release Number (DRN), National Student Loan
Database System (NSLDS) match results, a bar code, and transaction
source).
Information from other Department systems, such as NSLDS, the
Common Origination and Disbursement System (COD), and the Student Aid
Internet Gateway (SAIG) Participation Management System, is added to
this system of records. The Appendix contains a more detailed
description of the data added to this system of records as a result of
the exchanges of data with other Department systems and the
Department's computer matching programs with other Federal agencies.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Title IV of the Higher Education Act (HEA), as amended (20 U.S.C.
1001 et seq.).
PURPOSES:
The information contained in this system is maintained for the
purposes of: (1) Assisting with the determination, correction,
processing, tracking, and reporting of program eligibility and benefits
for the Federal student financial assistance programs authorized by
Title IV of the HEA; (2) making a loan, grant, or scholarship; (3)
verifying the identity of the applicant, the spouse if applicable, and
the parent(s) of a dependent applicant, and the accuracy of the
information in this system; (4) reporting the results of the need
analysis, Federal Pell Grant eligibility determination, and the results
of duly authorized computer matching programs between the Department
and other Federal agencies to applicants, postsecondary institutions,
third-party servicers, State agencies designated by the applicant, and
other Departmental and investigative components for use in operating
and evaluating the Title IV, HEA programs and in the imposition of
criminal, civil, or administrative sanctions; (5) enforcing the terms
and conditions of a Title IV, HEA loan or grant; (6) servicing and
collecting a delinquent Title IV, HEA loan or grant; (7) initiating
enforcement action against an individual involved in program fraud,
abuse, or noncompliance; (8) locating a debtor; (9) maintaining a
record of the data supplied by those requesting assistance; (10)
ensuring compliance with and enforcing Title IV, HEA programmatic
requirements; (11) acting as a repository and source for
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information necessary to fulfill the requirements of Title IV of the
HEA; (12) evaluating Title IV, HEA program effectiveness; (13) enabling
institutions of higher education designated by the applicant to review
and analyze the financial aid data of their applicant population; (14)
assisting students with the completion of the application for the
Federal student financial assistance programs authorized by Title IV of
the HEA; (15) determining the eligibility of applicants for the award
of State postsecondary education assistance and for the award of aid by
eligible institutions of higher education or other entities designated
by the Secretary and administering those awards; and 16) promoting and
encouraging application for Title IV, HEA program assistance, State
assistance, and aid awarded by institutions of higher education or
other entities designated by the Secretary.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USES AND PURPOSES OF SUCH USES:
The Department may disclose information contained in a record in
this system of records under the routine uses listed in this system of
records without the consent of the individual if the disclosure is
compatible with the purposes for which the record was collected. These
disclosures may be made on a case-by-case basis, or, if the Department
has complied with the computer matching requirements of the Privacy Act
of 1974, as amended (Privacy Act), under a computer matching agreement.
(1) Program Disclosures.
(a) To verify the identity of the applicant and the applicant's
spouse, if applicable, and the parent(s) of a dependent applicant; to
determine the accuracy of the information contained in the record; to
support compliance with Title IV, HEA statutory and regulatory
requirements; and to assist with the determination, correction,
processing, tracking, and reporting of program eligibility and
benefits, the Department may disclose records to guaranty agencies and
financial institutions participating in the Federal Family Education
Loan (FFEL) Programs, institutions of higher education, third-party
servicers, and Federal and State agencies;
(b) To provide an applicant's financial aid history, including
information about the applicant's Title IV, HEA loan defaults and Title
IV, HEA grant program overpayments, the Department may disclose records
to institutions of higher education, guaranty and State agencies,
financial institutions participating in the FFEL Programs, and third-
party servicers;
(c) To facilitate receiving and correcting application data,
processing Federal Pell Grants and Direct Loans, and reporting Federal
Perkins Loan Program expenditures to the Department's processing and
reporting systems, the Department may disclose records to institutions
of higher education, State agencies, and third-party servicers;
(d) To assist loan holders with the collection and servicing of
Title IV, HEA loans, to support pre-claims/supplemental pre-claims
assistance, to assist in locating borrowers, and to assist in locating
students who owe grant overpayments, the Department may disclose
records to guaranty agencies and financial institutions participating
in the FFEL Programs, institutions of higher education, third-party
servicers, and Federal, State, and local agencies;
(e) To facilitate assessments of Title IV, HEA program compliance,
the Department may disclose records to guaranty agencies and financial
institutions participating in the FFEL Programs, institutions of higher
education, third-party servicers, and Federal, State, and local
agencies;
(f) To assist in locating holders of loan(s), the Department may
disclose records to student borrowers, guaranty agencies and financial
institutions participating in the FFEL Programs, institutions of higher
education, third-party servicers, and Federal, State, and local
agencies;
(g) To assist in assessing the administration of Title IV, HEA
program funds by guaranty agencies, financial institutions,
institutions of higher education, and third-party servicers, the
Department may disclose records to Federal and State agencies;
(h) To enforce the terms of a loan or grant or to assist in the
collection of loan or grant overpayments, the Department may disclose
records to guaranty agencies and financial institutions participating
in the FFEL programs, institutions of higher education, third-party
servicers, and Federal, State, and local agencies;
(i) To assist borrowers in repayment, the Department may disclose
records to guaranty agencies and financial institutions participating
in the FFEL program, institutions of higher education, third-party
servicers, and Federal, State, and local agencies;
(j) To initiate legal action against an individual involved in
illegal or unauthorized Title IV, HEA program expenditures or
activities, the Department may disclose records to guaranty agencies
and financial institutions participating in the FFEL programs,
institutions of higher education, third-party servicers, and Federal,
State, and local agencies;
(k) To initiate or support a limitation, suspension, or termination
action, an emergency action, or a debarment or suspension action, the
Department may disclose records to guaranty agencies and financial
institutions participating in the FFEL programs, institutions of higher
education, third-party servicers, and Federal, State, and local
agencies;
(l) To investigate complaints, update files, and correct errors,
the Department may disclose records to guaranty agencies and financial
institutions participating in the FFEL programs, institutions of higher
education, third-party servicers, and Federal, State, and local
agencies;
(m) To inform the parent(s) of a dependent applicant or a spouse of
an applicant of information about the parent(s) or spouse in an
application for Title IV, HEA funds, the Department may disclose
records to the parent(s) or the spouse, respectively;
(n) To disclose to the parent(s) of a dependent applicant applying
for a PLUS loan (to be used on behalf of a student), to identify the
student as the correct beneficiary of the PLUS loan funds, and to allow
the processing of the PLUS loan application and promissory note, the
Department may disclose records to the parent(s) applying for the PLUS
loan;
(o) To expedite the student application process, the Department may
disclose information from this system, upon request by a third-party,
provided that the third-party provides the Department with the
applicant's first and last name, SSN, date of birth, and DRN. A DRN is
a four-digit number assigned to an application by Federal Student Aid;
(p) To encourage a student to complete a FAFSA or to assist a
student with the completion of a FAFSA, the Department may disclose the
FAFSA filing status of the student to a LEA, a secondary school where
the student is or was enrolled, or other State, local, or private
entity designated by the Secretary;
(q) To enable an applicant, should the applicant wish to do so, to
obtain information from other Federal agencies' records that will
assist the applicant in completing the FAFSA online, the Department may
disclose information from this system of records to other Federal
agencies, such as the Internal Revenue Service; and
(r) To determine an applicant's eligibility for the award of State
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postsecondary education assistance and for the award of aid by eligible
institutions of higher education or other entities designated by the
Secretary and to administer those awards, the Department may disclose
information from this system of records to State agencies, eligible
institutions of higher education, and other entities designated by the
Secretary.
(2) Disclosure for Use by Other Law Enforcement Agencies. The
Department may disclose information to any Federal, State, local, or
foreign agency or other public authority responsible for enforcing,
investigating, or prosecuting violations of administrative, civil, or
criminal law or regulation if that information is relevant to any
enforcement, regulatory, investigative, or prosecutorial responsibility
within the receiving entity's jurisdiction.
(3) Enforcement Disclosure. If information in the system of
records, either alone or in connection with other information,
indicates a violation or potential violation of any applicable
statutory, regulatory, or legally binding requirement, the Department
may disclose records to an entity charged with investigating or
prosecuting those violations or potential violations.
(4) Litigation and Alternative Dispute Resolution (ADR)
Disclosures.
(a) Introduction. In the event that one of the following parties is
involved in litigation or ADR, or has an interest in litigation or ADR,
the Department may disclose certain records to the parties described in
paragraphs (b), (c), and (d) of this routine use under the conditions
specified in those paragraphs:
(i) The Department or any of its components.
(ii) Any Department employee in his or her official capacity.
(iii) Any Department employee in his or her individual capacity
where the Department of Justice (DOJ) agrees to or has been requested
to provide or arrange for representation of the employee.
(iv) Any Department employee in his or her individual capacity
where the Department has agreed to represent the employee.
(v) The United States, where the Department determines that the
litigation is likely to affect the Department or any of its components.
(b) Disclosure to the DOJ. If the Department determines that
disclosure of certain records to the DOJ is relevant and necessary to
litigation or ADR, the Department may disclose those records as a
routine use to the DOJ.
(c) Adjudicative Disclosures. If the Department determines that
disclosure of certain records to an adjudicative body before which the
Department is authorized to appear or to an individual or entity
designated by the Department or otherwise empowered to resolve or
mediate disputes is relevant and necessary to litigation or ADR, the
Department may disclose those records as a routine use to the
adjudicative body, individual, or entity.
(d) Parties, Counsel, Representatives, and Witnesses. If the
Department determines that disclosure of certain records is relevant
and necessary to litigation or ADR, the Department may disclose those
records as a routine use to the party, counsel, representative, or
witness.
(5) Freedom of Information Act (FOIA) and Privacy Act Advice
Disclosure. The Department may disclose records to the DOJ or to the
Office of Management and Budget (OMB) if the Department determines that
disclosure would help in determining whether records are required to be
disclosed under the FOIA or the Privacy Act.
(6) Contracting Disclosure. If the Department contracts with an
entity to perform any function that requires disclosing records to the
contractor's employees, the Department may disclose the records to
those employees. Before entering into such a contract, the Department
shall require the contractor to establish and maintain the safeguards
required under 5 U.S.C. 552a(m) of the Privacy Act with respect to the
records.
(7) Congressional Member Disclosure. The Department may disclose
records to a member of Congress in response to an inquiry from the
member made at the written request of the individual whose records are
being disclosed. The member's right to the information is no greater
than the right of the individual who requested it.
(8) Employment, Benefit, and Contracting Disclosure.
(a) For Decisions by the Department. The Department may disclose a
record to a Federal, State, or local agency maintaining civil,
criminal, or other relevant enforcement or other pertinent records, or
to another public authority or professional organization, if necessary
to obtain information relevant to a Department decision concerning the
hiring or retention of an employee or other personnel action, the
issuance of a security clearance, the letting of a contract, or the
issuance of a license, grant, or other benefit.
(b) For Decisions by Other Public Agencies and Professional
Organizations. The Department may disclose a record to a Federal,
State, local, or other public authority or professional organization,
in connection with the hiring or retention of an employee or other
personnel action, the issuance of a security clearance, the reporting
of an investigation of an employee, the letting of a contract, or the
issuance of a license, grant, or other benefit, to the extent that the
record is relevant and necessary to the receiving entity's decision on
the matter.
(9) Employee Grievance, Complaint, or Conduct Disclosure. If a
record is relevant and necessary to an employee grievance, complaint,
or disciplinary action, the Department may disclose the record in the
course of investigation, fact-finding, or adjudication to any witness,
designated fact-finder, mediator, or other person designated to resolve
issues or decide the matter.
(10) Labor Organization Disclosure. The Department may disclose
records from this system of records to an arbitrator to resolve
disputes under a negotiated grievance procedure or to officials of
labor organizations recognized under 5 U.S.C. chapter 71 when relevant
and necessary to their duties of exclusive representation.
(11) Disclosure to the DOJ. The Department may disclose records to
the DOJ to the extent necessary for obtaining DOJ advice on any matter
relevant to an audit, inspection, or other inquiry related to the
programs covered by this system.
(12) Research Disclosure. The Department may disclose records to a
researcher if the Department determines that the individual or
organization to which the disclosure would be made is qualified to
carry out specific research related to functions or purposes of this
system of records. Further, the Department may disclose records from
this system of records to that researcher solely for the purpose of
carrying out that research related to the functions or purposes of this
system of records. The researcher shall be required to maintain Privacy
Act safeguards with respect to the disclosed records.
(13) Disclosure to the OMB for Federal Credit Reform Act (CRA)
Support. The Department may disclose records to OMB as necessary to
fulfill CRA requirements. These requirements currently include transfer
of data on lender interest benefits and special allowance payments,
defaulted loan balances, and supplemental pre-claims assistance
payments information.
(14) Disclosures to third-parties through computer matching
programs. Any information from this system of records, including
personal information obtained from other agencies through computer
matching programs, may be disclosed to any third-party through a
computer matching program in connection with an individual's
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application or participation in any grant or loan program administered
by the Department. Purposes of these disclosures may be to determine
program eligibility and benefits, enforce the conditions and terms of a
loan or grant, permit the servicing and collecting of a loan or grant,
counsel the individual in repayment efforts, investigate possible fraud
and verify compliance with program regulations, locate a delinquent or
defaulted debtor, or initiate legal action against an individual
involved in program fraud or abuse.
(15) Disclosure in the Course of Responding to Breach of Data. The
Department may disclose records from this system to appropriate
agencies, entities, and persons when (a) the Department suspects or has
confirmed that the security or confidentiality of information in the
system of records has been compromised; (b) the Department has
determined that as a result of the suspected or confirmed compromise
there is a risk of harm to economic or property interests, identity
theft or fraud, or harm to the security or integrity of this system or
other systems or programs (whether maintained by the Department or
another agency or entity) that rely upon the compromised information;
and (c) the disclosure made to such agencies, entities, and persons is
reasonably necessary to assist in connection with the Department's
efforts to respond to the suspected or confirmed compromise and
prevent, minimize, or remedy such harm.
DISCLOSURE TO CONSUMER REPORTING AGENCIES:
Disclosures pursuant to 5 U.S.C. 552a(b)(12): The Department may
disclose the following information to a consumer reporting agency
regarding a valid overdue claim of the Department: (1) The name,
address, taxpayer identification number, and other information
necessary to establish the identity of the individual responsible for
the claim; (2) the amount, status, and history of the claim; and (3)
the program under which the claim arose. The Department may disclose
the information specified in this paragraph under 5 U.S.C. 552a(b)(12)
and the procedures contained in subsection 31 U.S.C. 3711(e). A
consumer reporting agency to which these disclosures may be made is
defined at 31 U.S.C. 3701(a)(3).
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
Paper applications are maintained in standard Federal Records
Center boxes in locked storage rooms at the contractor facility in Mt.
Vernon, Illinois, and then moved to the Federal archives where the
records are maintained.
Computerized applicant records, which include optically imaged
documents, are maintained on magnetic tape reels, cartridges, and hard
disks in the computer facility and locked storage rooms within the
Virtual Data Center. Microfiche records maintained in the Washington,
DC office are stored in a locked fireproof file cabinet. Access is
available only to authorized personnel.
RETRIEVABILITY:
Records are indexed and retrieved by the applicant's SSN, name, and
the academic year in which the applicant applied for Title IV, HEA
program assistance.
SAFEGUARDS:
Physical access to the data systems housed within the VDC is
controlled by a computerized badge reading system, and the entire
complex is patrolled by security personnel during non-business hours.
The computer system employed by the Department offers a high degree of
resistance to tampering and circumvention. Multiple levels of security
are maintained within the computer system control program. This
security system limits data access to Department and contract staff on
a ``need-to-know'' basis, and controls individual users' ability to
access and alter records within the system. All users of this system of
records are given a unique user ID with personal identifiers. All
interactions by individual users with the system are recorded. Paper
applications are maintained in standard Federal Records Center boxes in
a locked storage room at the contractor facility in Mount Vernon,
Illinois, and then moved to the Federal archives where the records are
maintained.
RETENTION AND DISPOSAL:
The Department will retain all identifiable CPS records for a
period not to exceed 15 years after the end of the award year in
accordance with the applicable Record Retention Schedule as approved by
the National Archives and Records Administration. At the conclusion of
the mandatory retention period, these records will be destroyed
consistent with legal retention requirements established by the
Department in conjunction with the National Archives and Records
Administration.
SYSTEM MANAGER(S) AND ADDRESS:
Director, Application Processing Division, Program Management
Systems, Federal Student Aid, U.S. Department of Education, 830 First
St., NE., UCP, room 63C4, Washington, DC 20202.
NOTIFICATION PROCEDURES:
If you wish to determine whether a record exists regarding you in
the system of records, contact the system manager and provide your
name, date of birth, and SSN or call 1-800-4-FED-AID (1-800-433-3243)
and give the same information. Requests for notification about whether
the system of records contains information about an individual must
meet the requirements of the regulations at 34 CFR 5b.5, including
proof of identity.
RECORD ACCESS PROCEDURES:
If you wish to gain access to a record in this system, contact the
system manager and provide information as described in the Notification
Procedure. Requests by an individual for access to a record must meet
the requirements of the regulations at 34 CFR 5b.5, including proof of
identity.
CONTESTING RECORD PROCEDURES:
If you wish to contest the content of a record for the current
processing year (which begins on January 1 of the calendar year and
continues for 18 months until June 30 of the following calendar year)
in the FAFSA, contact the system manager with the information described
in the Notification Procedure, identify the specific items to be
changed, and provide a justification for the change. Requests to amend
a record must meet the requirements of regulations at 34 CFR 5b.7.
RECORD SOURCE CATEGORIES:
Applicants for Federal student financial aid, their spouses (if
married), and the parent(s) of dependent applicants provide the
information used in this system by filing a phone, paper, or electronic
version of the FAFSA with the Department of Education. (The electronic
FAFSA can be accessed at http://www.fafsa.ed.gov.)
Postsecondary institutions designated by the applicant or third-
party servicers designated by the postsecondary institution may correct
the records in this system as a result of documentation provided by the
applicant or by a dependent applicant's parents, such as Federal income
return(s) (IRS Form
[[Page 46780]]
1040, IRS Form 1040A, or IRS Form 1040EZ), Social Security card(s), and
Department of Homeland Security I-551 Resident Alien cards.
This system contains information added during CPS processing and
information received from other Department systems, including NSLDS,
COD, and the SAIG Participation Management System. For more information
about the information received from these other Department systems, see
the Appendix.
The results of computer matching programs with the following
Federal agencies are also added to the student's record during CPS
processing: The Social Security Administration (SSA), the Department of
Veterans Affairs (VA), the Selective Service System (SSS), the
Department of Homeland Security (DHS), the Department of Justice (DOJ),
and the Department of Defense (DoD). For more information about the
information received from these computer matching programs, see the
Appendix.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
None.
Appendix to 18-11-01
Additional Information about Categories of Records in the System and
Record Source Categories:
Data provided to the Department as a result of computer matching
with other Federal agencies are added during CPS processing. These
computer matches are with the SSA to verify the SSNs of applicants, and
dependent applicants' parent(s), and to confirm the U.S. citizenship
status of applicants as recorded in SSA records and date of death (if
applicable) of applicants, and dependent applicants' parents, pursuant
to sections 428B(f)(2), 483(a)(12), and 484(g) and (p) of the HEA (20
U.S.C. 1078-2(f)(2), 1090(a)(12), and 1091(g) and (p)); with the VA to
verify the status of applicants who claim to be veterans, pursuant to
section 480(c) and (d)(1)(D) of the HEA (20 U.S.C. 1087vv(c) and
(d)(1)(D)); with the SSS to confirm the registration status of male
applicants, pursuant to section 484(n) of the HEA (20 U.S.C. 1091(n));
with the DHS to confirm the immigration status of applicants for
assistance as authorized by section 484(g) of the HEA (20 U.S.C.
1091(g)); with the DOJ to enforce any requirement imposed at the
discretion of a court, pursuant to section 5301 of the Anti-Drug Abuse
Act of 1988, Public Law 100-690, as amended by section 1002(d) of the
Crime Control Act of 1990, Public Law 101-647 (21 U.S.C. 862), denying
Federal benefits under the programs established by Title IV of the HEA
to any individual convicted of a State or Federal offense for the
distribution or possession of a controlled substance; and with the DoD
to identify dependents of U.S. military personnel who died in service
in Iraq and Afghanistan after September 11, 2001, to determine if they
are eligible for increased amounts of Title IV, HEA program assistance,
pursuant to sections 420R and 473(b) of the HEA (20 U.S.C. 1070h and
1087mm(b)).
During CPS processing, the Department's COD system sends
information to this system for students who have received a Federal
Pell Grant. The CPS uses this information for verification analysis and
for end-of-year reporting. These data include, but are not limited to:
Verification Selection and Status, Potential Over-award Project (POP)
indicator, Institutional Cost of Attendance, Reporting and Attended
Campus Pell ID and Enrollment Date, and Federal Pell Grant Program
information (Scheduled Federal Pell Grant Award, Origination Award
Amount, Total Accepted Disbursement Amount, Number of Disbursements
Accepted, Percentage of Eligibility Used At This Attended Campus
Institution, and Date of Last Activity from the Origination or
Disbursement table).
The CPS also receives applicant data from the Department's NSLDS
system each time an application is processed or corrected. This process
assesses student aid eligibility, updates financial aid history, and
ensures compliance with Title IV, HEA regulations. Some of these data
appear on the applicant's SAR and ISIR. Title IV, HEA award information
is provided to NSLDS from several different sources. Federal Perkins
Loan data and Federal Supplemental Educational Opportunity Grant
(FSEOG) overpayment data are sent from postsecondary institutions or
their third-party servicers; the Department's COD system provides
Federal Pell Grant and Direct Loan data; and State and guaranty
agencies provide data on FFEL loans received from lending institutions
participating in the FFEL programs.
Financial aid transcript data reported by NSLDS provides
applicants, postsecondary institutions, and third-party servicers with
information about the type(s), amount(s), dates, and overpayment status
of prior and current Title IV HEA funds the applicant received. FFEL
and William D. Ford Federal Direct Student Loan (DL) data reported by
NSLDS include, but are not limited to: (1) Aggregate Loan Data, such as
Subsidized, Unsubsidized; Combined Outstanding Principal Balances;
Unallocated Consolidated Outstanding Principal Balances, Subsidized,
Unsubsidized; Combined Pending Disbursements, Subsidized, Unsubsidized;
Combined Totals; and Unallocated Consolidated Totals; (2) Detail Loan
Data, such as Loan Sequence Number; Loan Type Code; Loan Change Flag;
Loan Program Code; Current Status Code and Date; Outstanding Principal
Balance and Date; Net Loan Amount; Loan begin and End Dates; Amount and
Date of Last Disbursement; Guaranty Agency Code; School Code; Contact
Code; and Institution Type and Grade Level; and (3) system flags for
Additional Unsubsidized Loan; Capitalized Interest; Defaulted Loan
Change; Discharged Loan Change; Loan Satisfactory Repayment Change;
Active Bankruptcy Change; Overpayments Change; Aggregate Loan Change;
Defaulted Loan; Discharged Loan; Loan Satisfactory Repayment; Active
Bankruptcy; Additional Loans; DL Master Promissory Note; DL PLUS Loan
Master Promissory Note; Subsidized Loan Limit; and the Combined Loan
Limit. Federal Perkins Loan data reported by NSLDS include, but are not
limited to: Cumulative and Current Year Disbursement Amounts; flags for
Perkins Loan Change; Defaulted Loan; Discharged Loan; Loan Satisfactory
Repayment; Active Bankruptcy; Additional Loans; and Perkins Overpayment
Flag and Contact (School or Region). Federal Pell Grant payment data
reported include, but are not limited to: Pell Sequence Number; Pell
Attended School Code; Pell Transaction Number; Last Update Date;
Scheduled Amount; Award Amount; Amount Paid to Date; Percent Scheduled
Award Used; Pell Payment EFC; Flags for Pell Verification; and Pell
Payment Change. Federal Teacher Education Assistance for College and
Higher Education (TEACH) Grant Program data include, but are not
limited to: TEACH Grant Overpayment Contact; TEACH Grant Overpayment
Flag; TEACH Grant Loan Principal Balance; TEACH Grant Total; and Teach
Grant Change Flag. The National Science and Mathematics Access to
Retain Talent Grant (SMART Grant) data include, but are not limited to:
SMART Grant Overpayment Flag; SMART Grant Overpayment Contact; and
SMART Grant Change Flag. Iraq and Afghanistan Service Grants data
include, but are not limited to: Total Award Amount. Academic
Competitiveness Grant (ACG) data include, but are not limited to: ACG
Award Amount; ACG Overpayment Flag; and ACG Payment Change Flag. FSEOG
data include, but are not limited
[[Page 46781]]
to: Overpayment Flag and contact information.
The Department obtains and exchanges information that is included
in this system of records from institutions offering secondary level
education, local educational agencies, other local agencies,
postsecondary institutions, third-party servicers, State agencies, and
lending institutions that participate in the FFEL programs. These
eligible entities register with the SAIG system to participate in the
information exchanges specified for their business processes.
[FR Doc. 2011-19607 Filed 8-2-11; 8:45 am]
BILLING CODE 4000-01-P