[Federal Register Volume 80, Number 182 (Monday, September 21, 2015)]
[Notices]
[Pages 56969-56972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23633]
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DEPARTMENT OF EDUCATION
Privacy Act of 1974; System of Records--Electronic Cohort Default
Rate Appeals (eCDR Appeals), as Supplemented and Renamed Data
Challenges and Appeals Solutions System
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of an altered system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended
(Privacy Act), the Department of Education (Department) publishes this
notice of an altered system of records entitled ``Data Challenges and
Appeals Solutions (DCAS) System,'' which will replace the ``Electronic
Cohort Default Rate Appeals (eCDR Appeals)'' system of records.
On October 31, 2014, the Secretary published final regulations in
the Federal Register that apply to educational programs that are
eligible to participate in the student financial assistance programs
authorized under title IV of the Higher Education Act of 1965, as
amended (HEA), because these programs ``prepare students for gainful
employment in a recognized occupation'' (GE regulations). The GE
regulations establish a new program eligibility measure and disclosure
requirements. As a result, Federal Student Aid (FSA) will be
responsible for many more data challenges, requests for adjustments,
and appeals in the coming years.
The DCAS System is the enhanced successor system to the eCDR
Appeals system and will be implemented in phases to include all
appeals, requests for adjustments and challenges related to
institutional cohort default rates (CDRs), the GE regulations, and
other student-level data initiatives. After FSA fully implements all
phases of the DCAS System, FSA will retire the prior information
technology system that housed the eCDR Appeals data.
In addition to the records described above, the DCAS System will
contain records regarding borrowers who have applied for and received
loans under the William D. Ford Federal Direct Loan (Direct Loan)
Program and the Federal Family Education Loan (FFEL) Program.
The Department seeks comment on the altered system of records
described in this notice, in accordance with the requirements of the
Privacy Act.
DATES: We must receive your comments about this altered system of
records on or before October 21, 2015.
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, Office of Management
and Budget (OMB) on September 10, 2015. This altered system of records
will become effective upon the later date of: (1) The expiration of the
40-day period for OMB review on October 21, 2015; or (2) October 21,
2015, unless the altered 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
Nikki Harris, Operation Performance Division, Gainful Employment Staff,
Federal Student Aid, U.S. Department of Education, Union Center Plaza,
830 First Street NE., Room 62A4, Washington, DC 20202-5353.
If you prefer to send comments by email, use the following address:
[email protected].
You must include ``eCDR Appeals/DCAS'' in the subject line of your
electronic message.
During and after the comment period, you may inspect all comments
about
[[Page 56970]]
this notice at the U.S. Department of Education in Room 62A4, Union
Center Plaza, 6th Floor, 830 First Street NE., Washington, DC, between
the hours of 8:00 a.m. and 4:00 p.m., Eastern time, Monday through
Friday of each week except Federal holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking
Record
On request, we will supply appropriate accommodations or auxiliary
aids 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: Nikki Harris. Telephone number: (202)
377-4876. If you use a telecommunications device for the deaf (TDD) or
a text telephone (TTY), call the Federal Relay Service (FRS), toll
free, at 1-800-877-8339.
Individuals with disabilities can obtain this document in an
alternative format (e.g., braille, large print, audiotape, or compact
disc) on request to the contact person listed in this section.
SUPPLEMENTARY INFORMATION:
Introduction
The Privacy Act (5 U.S.C. 552a(e)(4)) requires the Department to
publish in the Federal Register this notice of an altered system of
records maintained by the Department. The Department's regulations
implementing the Privacy Act are contained in the Code of Federal
Regulations in part 5b of title 34.
The Privacy Act applies to a record about an individual that is
maintained in a system of records from which individually identifying
information is retrieved by a unique identifier associated with each
individual, such as a name or Social Security number. 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 makes a significant change to 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 Committee on
Oversight and Government Reform of the House of Representatives, and to
the Chair of the Committee on Homeland Security and Governmental
Affairs of the Senate.
The Department currently uses the eCDR Appeals system for data
challenges, requests for adjustments, and appeals consistent with the
requirements of the CDR regulations in subpart N of the Student
Assistance General Provisions regulations (34 CFR part 668), which the
Department promulgated to implement the CDR requirements of section 435
of the HEA. The CDR is the percentage of borrowers at an institution of
higher education (institution) who enter repayment on certain FFEL
Loans and/or Direct Loans during the fiscal year and default within
that cohort period. Every year, the Department calculates the CDR for
institutions twice a year based on a three-year cohort period. The
Department calculates and releases to institutions the draft CDRs in
February (i.e., ``draft cycle''), and calculates and releases the
official CDRs to institutions and the public in September (i.e.,
``official cycle''). Throughout the annual cycle, the Department gives
institutions an opportunity to challenge, appeal, and request
adjustments to their CDRs based on a number of factors governed by
statute and the Department's regulations. The basis for such
challenges, appeals, and requests for adjustments may include:
Incorrect data adjustments, participation rate index challenges,
uncorrected data adjustments, new data adjustments, erroneous data
appeals, loan servicing appeals, economically disadvantaged appeals,
participation rate index appeals, average rate appeals, and thirty-or-
fewer borrower appeals.
Institutions that believe that their CDR is inaccurate, or that
believe they should not be subject to sanction or provisional
certification based on certain mitigating circumstances, may submit a
data challenge during the draft cycle or request an adjustment or
appeal during the official cycle. An institution may allege that the
Department used inaccurate data for specific loan records in the
calculation of the institution's CDR. The appropriate data manager and
the Department review and respond to each allegation. Note: Data
managers are determined on the basis of the holder of the loan. For
FFEL Program loans held by the lender or its guaranty agency, the
guaranty agency is the data manager for the purpose of the appeal. If
the Department is the holder of the FFEL Program loan, then the
Department is the data manager. For Direct Loans, the Direct Loan
servicer is the data manager. When the data manager and the Department
agree with the allegation, the data is corrected by the data manager.
If the data manager and the Department disagree with the institution's
allegations (i.e., find that the data used was correct), then no change
will be made. An institution not subject to sanction or provisional
certification has no further recourse if a data manager and the
Department disagree with their allegation.
For the most recent cohort year, 2011, over 357 institutions
submitted data challenges for the three-year draft CDR. Of the 357
institutional data challenges, the submissions ranged from data
challenges containing as few as one allegation to as many as 1,500
allegations per challenge.
The GE regulations establish a debt-to-earnings (D/E) rates measure
to determine whether a GE program prepares students for gainful
employment in a recognized occupation. The D/E rates measure is based
on the typical loan debt and earnings of students who previously
completed the program. The Department calculates two D/E rates measure:
One based on annual earnings and one based on discretionary income. The
GE regulations also require institutions to disclose to current and
prospective students information about the institutions' GE programs.
These disclosures may include the following calculations: Median
earnings, completion and withdrawal rates, repayment rate, median loan
debt, and a program-level cohort default rate (pCDR). We refer to the
D/E rates calculations and the calculations for purposes of the
disclosure requirements as the ``GE calculations.'' The Department
estimates that it will receive over 300,000 challenges to the data used
to calculate draft D/E rates measure in the first year in which the
Department calculates rates under the GE regulations. (79 FR 64993,
65004) The Department also expects to receive challenges, requests for
adjustments, and appeals with respect to the other GE calculations.
The DCAS System, as an enhanced successor system to the eCDR
Appeals system, will help address the rising volume of data challenges,
requests for adjustments, and appeals that institutions electronically
submit to FSA.
The DCAS System will: (1) Allow institutions to electronically
challenge the data used in their CDRs and GE calculations;
electronically request adjustments to and appeal their official CDRs
and pCDRs; and electronically appeal their final D/E rates calculation;
and (2) provide capability to FSA and
[[Page 56971]]
data managers to electronically view and respond to those challenges,
requests for adjustments, and appeals.
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: www.gpo.gov/fdsys. At this site you can view this document, as well
as all other documents of the Department published in the Federal
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 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.
Delegation of Authority: The Secretary of Education has
delegated authority to Matthew Sessa, Deputy Chief Operating
Officer, Federal Student Aid, to perform the functions and duties of
the Chief Operating Officer.
Matthew Sessa,
Deputy Chief Operating Officer, Federal Student Aid Delegated Duties of
the Chief Operating Officer, Federal Student Aid.
For the reasons discussed in the preamble, the Chief Operating
Officer, Federal Student Aid (FSA), U.S. Department of Education
(Department) publishes a notice of an altered system of records, to
read as follows:
SYSTEM NUMBER:
18-11-18
SYSTEM NAME:
Data Challenges and Appeals Solutions (DCAS) System.
SECURITY CLASSIFICATION:
None.
SYSTEM LOCATIONS:
(1) Operations Performance Division, Gainful Employment Team,
Federal Student Aid, U.S. Department of Education, Union Center Plaza,
830 First Street NE., Room 62A4, Washington, DC 20202-5353.
(2) Virtual Data Center (VDC), Dell Systems, 2300 W. Plano Parkway,
Plano, TX 75075-8427 (Department's Contractor).
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
The DCAS System contains records on all recipients under title IV
of the Higher Education Act of 1965, as amended (HEA), who receive
loans, grants, or work-study. Although the DCAS System contains
information about institutions associated with individuals, this system
of records notice pertains only to individuals protected under the
Privacy Act of 1974, as amended (Privacy Act).
CATEGORIES OF RECORDS IN THE SYSTEM:
The DCAS System contains records regarding: (1) Student/borrower
identifier information including Social Security number and name; (2)
loan information (e.g., last date of attendance, date entered
repayment, default date); (3) student status information (e.g., program
enrollment information, dates of enrollment, amounts paid for tuition
and fees); and (4) documentation submitted by an institution of higher
education (institution) or data manager to support its data challenges,
requests for adjustments, or appeals (e.g., enrollment verification,
copies of cancelled checks, etc.). Note: Data managers are determined
on the basis of the holder of the loan. For FFEL Program loans held by
the lender or its guaranty agency, the guaranty agency is the data
manager for the purpose of the appeal. If the Department is the holder
of the FFEL Program loan, then the Department is the data manager. For
Direct Loans, the Direct Loan servicer is the data manager.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
20 U.S.C. 1001, 1002, 1082, 1085, 1088, 1094, 1099c.
PURPOSE(S):
The information contained in the records maintained in this system
is used for the following purposes:
(1) To allow institutions to electronically challenge, request
adjustments to, and appeal their cohort default rates (CDRs) and
calculations (GE calculations) required under the Department's
regulations that apply to educational programs that are required to
prepare students for gainful employment in a recognized occupation (GE
regulations).
(2) To allow FSA and data managers to electronically view and
respond to these challenges, requests for adjustments, and appeals from
institutions.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
The Department may disclose information contained in a record 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. The Department may make these disclosures on a case-by-case
basis, or, if the Department has complied with the computer matching
requirements of the Privacy Act, under a computer matching agreement.
(1) Program Disclosures. The Department may disclose records to the
institution or data manager responsible for entering the information
into the DCAS System, in order to provide an institution with an
opportunity to challenge the accuracy of the data and the calculations
made by the Department using that data, and to obtain clarification or
additional information to assist in determining the outcome of the
challenges, requests for adjustments, or appeals.
(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. In the event that information in this
system of records indicates, either on its face or in connection with
other information, a violation or potential violation of any applicable
statutory, regulatory, or legally binding requirement, the Department
may disclose the relevant records to the appropriate agency, whether
foreign, Federal, State, tribal, or local, charged with the
responsibility of investigating or prosecuting that violation or
charged with enforcing or implementing the statute, Executive order,
rule, regulation, or order issued pursuant thereto.
(4) Litigation and Alternative Dispute Resolution (ADR) Disclosure.
(a) Introduction. In the event that one of the parties listed below
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 if
the U.S. Department of Justice (DOJ) has been requested to or has
agreed to provide or arrange for representation for the employee.
(iv) Any Department employee in his or her individual capacity
where the
[[Page 56972]]
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 DOJ. If the Department determines that disclosure
of certain records to DOJ is relevant and necessary to litigation or
ADR, the Department may disclose those records as a routine use to DOJ.
(c) Adjudicative Disclosure. If the Department determines that it
is relevant and necessary to the litigation or ADR to disclose certain
records to an adjudicative body before which the Department is
authorized to appear, to an individual, or to an entity designated by
the Department or otherwise empowered to resolve or mediate disputes,
the Department may disclose those records as a routine use to the
adjudicative body, individual, or entity.
(d) Disclosure to Parties, Counsel, Representatives, or Witnesses.
If the Department determines that disclosure of certain records to a
party, counsel, representative, or witness is relevant and necessary to
the 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 DOJ or the Office of
Management and Budget if the Department concludes that disclosure would
help in determining whether particular records are required to be
disclosed under the FOIA or the Privacy Act.
(6) Contract 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 maintain Privacy Act safeguards as
required under 5 U.S.C. 552a(m) with respect to the records in the
system.
(7) Congressional Member Disclosure. The Department may disclose
the records of an individual to a member of Congress or the member's
staff in response to an inquiry from the member made at the written
request of that individual. The member's right to the information is no
greater than the right of the individual who requested the inquiry.
(8) Disclosure in the Course of Responding to Breach of Data. The
Department may disclose records to appropriate agencies, entities, and
persons when (1) it is suspected or confirmed that the security or
confidentiality of information in the DCAS System has been compromised;
(2) 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 the DCAS System or other systems or programs (whether
maintained by the Department or by another agency or entity) that rely
upon the compromised information; and (3) the disclosure is made to
such agencies, entities, and persons who are reasonably necessary to
assist the Department in responding to the suspected or confirmed
compromise and in helping the Department prevent, minimize, or remedy
such harm.
DISCLOSURE TO CONSUMER REPORTING AGENCIES:
None.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
Records are maintained in a database on the Department's secure
servers and in other electronic storage media.
RETRIEVABILITY:
Records are retrieved by a unique institution of higher education
code number provided by the Department to participating institutions
and the borrower's Social Security number.
SAFEGUARDS:
Access to the records is limited to authorized personnel only. All
physical access to the Department's site, and to the site of the
Department's contractor where this system of records is maintained, is
controlled and monitored by security personnel who check each
individual entering the buildings for his or her employee or visitor
badge.
The computer system employed by the Department and by the
Department's contractor offers a high degree of resistance to tampering
and circumvention. This security system limits data access to
Department and contract staff on a ``need to know'' basis, and controls
an individual user's ability to access and alter records within the
system. All users of this system of records are given a unique user
identification. The Department's Federal Student Aid Information
Security Privacy Policy requires the enforcement of a complex password
policy. In addition, users are required to change their password at
least every 60 to 90 days in accordance with the Department's
information technology standards. At the principal site of the
Department's contractor in Plano, Texas, additional physical security
measures are in place and access is monitored 24 hours per day, 7 days
a week.
RETENTION AND DISPOSAL:
The records associated with an institution's challenges, requests
for adjustments, or appeals are currently unscheduled pending National
Archives and Records Administration (NARA) approval of a records
retention schedule. Until a NARA-approved records schedule is in
effect, no records will be destroyed.
SYSTEM MANAGER(S) AND ADDRESS:
Nikki Harris, Operations Performance Division, Gainful Employment
Team, U.S. Department of Education, Federal Student Aid, Union Center
Plaza, 830 First Street NE., Room 62A4, Washington, DC 20202-5353.
NOTIFICATION PROCEDURE:
If you wish to determine whether a record exists regarding you in
the system of records, contact the system manager. Your request must
meet the requirements of regulations in 34 CFR 5b.5, including proof of
identity.
RECORD ACCESS PROCEDURE:
If you wish to gain access to your record in the system of records,
contact the system manager at the address listed under SYSTEM MANAGER
AND ADDRESS. Requests should contain your full name, address, and
telephone number. Your request must meet the requirements of
regulations in 34 CFR 5b.5, including proof of identity.
CONTESTING RECORD PROCEDURE:
If you wish to contest the content of a record regarding you in the
system of records, contact the system manager. Your request must meet
the requirements of the regulations in 34 CFR 5b.7, including proof of
identity.
RECORD SOURCE CATEGORIES:
Information maintained in this system of records is obtained from
institutions of higher education, data managers, and other FSA systems
of records, including the National Student Loan Data System (18-11-06).
EXEMPTIONS CLAIMED FOR THIS SYSTEM:
None.
[FR Doc. 2015-23633 Filed 9-18-15; 8:45 am]
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