[Federal Register Volume 59, Number 70 (Tuesday, April 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8679]


[[Page Unknown]]

[Federal Register: April 12, 1994]


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DEPARTMENT OF EDUCATION

 

Privacy Act of 1974; System of Records

AGENCY: Department of Education.

ACTION: Notice of an altered system of records; deletion of existing 
systems of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Department of Education publishes this notice of an altered system of 
records that consolidates ten existing systems of records maintained 
under the student financial assistance programs authorized by title IV, 
the Higher Education Act, 1965, amended, (HEA). The notice is also 
expanded to cover the new Federal Direct Student Loan programs 
authorized under title IV, HEA. The programs involved in this 
consolidation include the Federal Direct Student Loan, Federal Insured 
Student Loan, Federal Family Education Loan, and Federal Perkins Loan 
programs. This system will also maintain records under the Federal 
Supplemental Educational Opportunity Grant and Federal Pell Grant 
programs that are necessary in the collection of overpayments. Because 
this system is being expanded to cover one new program, the Department 
seeks comments on all of the routine uses contained in this notice. The 
name and number of the single consolidated system of records is the 
Title IV Program File (18-40-0024).

DATES: Comments on the proposed routine uses for this system of records 
must be submitted by May 12, 1994. The Department filed a report of the 
altered system of records with the Committee on Governmental Affairs of 
the Senate, the Committee on Government Operations of the House of 
Representatives, and the Administrator of the Office of Information and 
Regulatory Affairs of the Office of Management and Budget (OMB) on 
April 6, 1994. This system of records will become effective after a 40-
day period for OMB review of the system expires on May 16, 1994, unless 
OMB gives specific notice within the 40 days that the system is not 
approved for implementation or requests additional time for its review. 
The Department will publish any changes to the routine uses that are 
required as a result of the comments.

ADDRESSES: Comments on the proposed routine uses should be addressed to 
the Privacy Act Officer, Information Resource Management Service, 
Information Management and Compliance Division, U.S. Department of 
Education, 400 Maryland Avenue, SW., room 5624, GSA Regional Office 
Building 3, Washington, DC 20202-4651. All comments submitted in 
response to this notice will be available for public inspection, during 
and after the comment period in Room 5624, GSA Regional Office Building 
3, 7th & D Streets, SW., between the hours of 8:30 a.m. and 4 p.m., 
Monday through Friday of each week except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Barbara Ragon, Program Specialist, 
Federal Direct Student Loan Branch, Division of Policy Development, 
Student Financial Assistance Programs, U.S. Department of Education, 
400 Maryland Avenue SW, Washington, DC 20202-5449. Telephone Number: 
(202) 708-8242. Individuals who use a telecommunications device (TDD) 
may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 
between 8 a.m. and 8 p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The Department of Education consolidates 
into a single system of records ten existing systems that are currently 
maintained regarding information authorized to be collected under title 
IV of the Higher Education Act of 1965 (title IV, HEA), as amended. In 
addition, the system is expanded to include the Federal Direct Student 
Loan Program, authorized to be collected under Part D of the Higher 
Education Amendments of 1992.
    Currently, ten separate systems of records notices notify the 
public about the existence of data collected under title IV, HEA. The 
consolidation of these systems of records will enable the Department to 
improve the efficiency of data maintenance by eliminating the 
administrative burden and duplication associated with the use of 
separate systems.
    The programs involved in this consolidation include the Federal 
Direct Student Loan Program; the Federal Family Education Loan 
(formerly Guaranteed Student Loan) Program, which includes the: Federal 
Stafford Loan, Federal Unsubsidized Stafford Loan, Federal SLS, Federal 
PLUS, and Federal Consolidation Loan Programs; the Federal Insured 
Student Loan (FISL) Program; and the Federal Perkins Loan Program 
(formerly the National Direct Student Loan Program). This system will 
also maintain records regarding individuals participating in the 
Federal Supplemental Educational Opportunity Grant Program and Federal 
Pell Grant Program that are necessary for the collection of 
overpayments.
    This Federal Register notice deletes the names and system numbers 
of ten existing systems of records and consolidates those files into a 
single system of records known as ``Title IV Program File'' 18-40-0024. 
The ten systems to be deleted are:
     Defaulted Guaranteed Loans Submitted to the Department of 
Justice (18-40-0023).
     Guaranteed Loan Program--Loan Application File (18-40-
0024).
     NDSL Student Loan Files (18-40-0025).
     Guaranteed Loan Program--Paid Claims File (18-40-0026).
     Guaranteed Loan Program--Claims and Collections Master 
File (18-40-0027).
     Guaranteed Loan Program--Collection Letters (18-40-0028).
     Guaranteed Loan Program--Inactive Loan Control Master File 
(18-40-0029).
     Guaranteed Loan Program--Loan Control Master File (18-40-
0030).
     Guaranteed Loan Program--Pre Claims Assistance (18-40-
0031).
     Guaranteed Loan Program--Insurance Claim File (18-40-
0044).
    Routine uses. The routine uses included in this consolidated notice 
appeared in at least one of the ten separate system notices. Most of 
the routine uses in this consolidated notice appeared in all of the 
system notices that are being consolidated. Because the System notice 
is being expanded to cover the new Federal Direct Student Loan Program, 
the Department asks for comment on all of the routine uses.
    Categories of individuals. The categories of individuals for whom 
records are maintained under this consolidated system notice will 
include: Borrowers who apply for loans under the Federal Direct Student 
Loan program; borrowers who applied for loans under the FISL Program; 
borrowers whose loans defaulted or the borrower died, became totally 
and permanently disabled, or had a loan discharged in bankruptcy under 
the FISL Program and on which ED paid a claim to the holder of the 
loan; borrowers whose loans were guaranteed by a guaranty agency and 
who defaulted under the FFEL Program, if those loans were assigned by 
the guaranty agency to ED; FFEL borrowers whose lenders have reported 
them delinquent or reported their locations as unknown; FFEL borrowers 
whose loans were cancelled due to borrower's death or total and 
permanent disability, or whose loans were discharged in bankruptcy 
under the FFEL Program; FFEL borrowers whose loans have been assigned 
to ED due to false loan certification; borrowers under the Federal 
Perkins Loan Program whose loans have been assigned to ED because of 
default, and borrowers under the Federal Perkins Loan Program or under 
the FFEL Program whose loans have been assigned to ED due to school 
closing; borrowers whose loans were served by guaranty agencies for 
which ED has assumed management responsibility; and Federal Pell and 
Federal Supplemental Educational Opportunity Grants on which 
overpayments are collected by ED.
    The overall set of individuals who apply for assistance will 
increase due to the addition of the Federal Direct Student Loan Program 
to this system of records notice.
    Purpose of the system. The Department needs to maintain records 
regarding certain individuals who have received title IV student 
financial assistance for the following purposes: (1) To verify their 
identity; (2) to determine program eligibility and benefits; (3) to 
permit servicing and collecting of the loan or grant; (4) to locate a 
delinquent or defaulted debtor or to locate a recipient owing an 
overpayment on a grant; (5) to counsel the individual in repayment 
efforts; (6) to investigate possible fraud; (7) to verify an 
individual's, or institution or other entity's compliance with program 
regulations; and (8) to initiate legal action against an individual, 
institution, or other entity involved in program fraud or abuse.
    This system of records contains numerous technical revisions to the 
current notice, including one which adds a purpose clause to the notice 
to comply with the Office of the Federal Register guidelines. The 
purpose clause notifies individuals of the intended use of the 
information collected in the system.
    Direct access is restricted to authorized contract and agency 
personnel in the performance of their official duties. Due to the 
restructuring of the system notice, it is being published in its 
entirety.

    Dated: April 6, 1994.
David Longanecker,
Assistant Secretary for Postsecondary Education.
    The Assistant Secretary for Postsecondary Education deletes the 
notices for the systems of records with the following numbers: 18-40-
0023, 18-40-0025, 18-40-0026, 18-40-0027, 18-40-0028, 18-40-0029, 18-
40-0031, 18-40-0039, 18-40-0044 and revises the notice of a system of 
records for system 18-40-0024 to read as follows:
18-40-0024
    Title IV Program Files
    None.
    U.S. Department of Education, Office of Postsecondary Education 
(OPE), Program Systems Support, Student Financial Assistance Programs, 
7th and D Streets, SW., GSA Regional Office Building 3, room 4640, 
Washington, DC 20202-5258. The National Computer Systems, 2510 North 
Dodge Street, Iowa City, Iowa; the Atlanta Regional Office, PO Box 
1692, Atlanta, Georgia; the Chicago Regional Office, 401 South State 
Street, room 700-D, Chicago, Illinois 60605; and the San Francisco 
Regional Office, 50 United Nations Plaza, room 250, San Francisco, 
California 94102-4987.
    The categories of individuals for whom records are maintained under 
this consolidated system notice will include: Borrowers who apply for 
loans under the Federal Direct Student Loan Program; borrowers who 
applied for loans under the Federal Insured Student Loan (FISL) 
Program; borrowers whose loans defaulted or the borrower died, became 
disabled or had a loan discharged in bankruptcy under the FISL Program 
and on which ED paid a claim to the holder of the loan; borrowers whose 
loans were guaranteed by a guaranty agency and who defaulted under the 
Federal Family Education Loan (FFEL) Program if those loans were 
assigned by the guaranty agency to ED; FFEL borrowers whose lenders 
have reported them delinquent or reported their locations as unknown; 
FFEL borrowers whose loans were cancelled due to borrower's death or 
total and permanent disability, or whose loans were discharged in 
bankruptcy under the FFEL Program; FFEL borrowers whose loans have been 
assigned to ED due to false loan certification; borrowers under the 
Federal Perkins Loan Program whose loans have been assigned to ED 
because of default, and borrowers under the Federal Perkins Loan 
Program or under the FFEL Program whose loans have been assigned to ED 
due to school closing; borrowers whose loans were served by guaranty 
agencies for which ED has assumed management responsibility; and 
Federal Pell and Federal Supplemental Educational Opportunity Grants on 
which overpayments are collected by the Department.
    This system contains records regarding an applicant's demographic 
background, loan, and educational status; family income; social 
security number; address and telephone number; and employment 
information on borrowers and co-signers; default claim number; amount 
of claim; information pertaining to locating a borrower; collection and 
repayment history; information pertaining to the amount of the loan and 
repayment obligation; forbearance; cancellation; disability; and 
deferment information.
    Higher Education Act of 1965, titles IV-A, IV-B, IV-D, and IV-E, as 
amended, (20 U.S.C. 1070-1070a-6, 1070b-1070b-3, 1071-1087-2, 1087a, 
1087aa-hh).
    The information contained in the records maintained in this system 
is used for the purposes of determining program eligibility and 
benefits, verifying the identity of the individual, enforcing the 
conditions and terms of the loan or grant, permitting the servicing and 
collecting of the loan or grant, counseling the individual in repayment 
efforts, investigating possible fraud and verifying compliance with 
program regulations, locating a delinquent or defaulted debtor or 
locating a recipient owing an overpayment on a grant, initiating legal 
action against an individual involved in program fraud, abuse, or 
noncompliance, and enforcing Title IV requirements against schools, 
lenders, and guaranty agencies.
    The Department of Education (ED) 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 purpose for which 
the record was collected under the following routine uses:
    (a) Program purposes. (1) The information may be disclosed for the 
following program purposes to the persons listed in (a)(2): To verify 
the identity of the applicant, to determine program eligibility and 
benefits, to facilitate default reduction efforts by program 
participants, to enforce the conditions or terms of the loan, to permit 
servicing, collecting, or accepting the loan, to counsel the borrower 
in repayment efforts, to investigate possible fraud and verify 
compliance with program regulations, to locate a delinquent or 
defaulted borrower, to issue collection letters, to locate a missing 
borrower, to collect in-file history information to determine assets 
and ability to pay, to determine last known address, to conduct a 
salary offset hearing under 34 CFR part 31, to prepare for litigation 
or to litigate collection service and audit, to initiate a limitation, 
suspension, and termination (LS&T) or debarment or suspension action, 
to ensure title IV requirements are met by schools, lenders, and 
guaranty agencies, to verify death, to conduct credit checks, and to 
investigate complaints, update files, and correct errors.
    (2) The information may be provided to the following recipients: 
Federal, State, or local agencies, private parties such as relatives, 
present and former employers and creditors, business and personal 
associates, guaranty agencies, educational and financial agencies or 
institutions, consumer reporting agencies, contractors and hearing 
officials.
    (b) Feasibility study disclosure. Any information from this system 
of records may be disclosed to other Federal agencies and to guaranty 
agencies to determine whether computer matching programs should be 
conducted by the Department regarding an individual's application for 
participation in any grant or loan program administered by ED. Purposes 
of these disclosures may be to determine program eligibility and 
benefits, facilitate default reduction efforts, enforce the conditions 
and terms of a loan or grant, permit the servicing and collecting of 
the loan or grant, enforce debarment, suspension, and exclusionary 
actions, counsel the individual in repayment efforts, investigate 
possible fraud and verify compliance with program regulations, locate a 
delinquent or defaulted debtor, and initiate legal action against an 
individual involved in program fraud or abuse.
    (c) 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 
statute, regulation, or order of a competent authority, the relevant 
records in the system of records may be referred, as a routine use, to 
the appropriate agency, whether foreign, Federal, State, or local, 
charged with the responsibility of investigating or prosecuting such 
violation or charged with enforcing or implementing the statute, or 
executive order or rule, regulation, or order issued pursuant thereto 
if the information is relevant to any enforcement, regulatory, 
investigative, or prosecutive responsibility of the receiving entity.
    (d) Subpoena disclosure. Where Federal agencies having the power to 
subpoena other Federal agencies' records, such as Internal Revenue 
Service or Civil Rights Commission, issue a subpoena to ED for records 
in this system of records, the Department may make such records 
available (provided the disclosure is consistent with the purposes for 
which the records were collected).
    (e) Litigation disclosure. (1) Disclosure to the Department of 
Justice. If ED determines that disclosure of certain records to the 
Department of Justice or attorneys engaged by the Department of Justice 
is relevant and necessary to litigation and is compatible with the 
purpose for which the records were collected, ED may disclose those 
records as a routine use to the Department of Justice. Such a 
disclosure may be made in the event that one of the parties listed 
below is involved in the litigation, or has an interest in the 
litigation:
    (i) ED, or any component of the Department; or
    (ii) Any ED employee in his or her official capacity; or
    (iii) Any employee of ED in his or her individual capacity where 
the Department of Justice has agreed to provide or arrange for 
representation for the employee; or
    (iv) Any employee of ED in his or her individual capacity where the 
agency has agreed to represent the employer; or
    (v) The United States where ED determines that the litigation is 
likely to affect the Department or any of its components.
    (2) Other disclosures. If ED determines that disclosure of certain 
records to a court, adjudicative body before which ED is authorized to 
appear, individual or entity designated by ED or otherwise empowered to 
resolve disputes, counsel, or other representative, or potential 
witness is relevant and necessary to litigation and is compatible with 
the purpose for which the records were collected, ED may disclose those 
records as a routine use to the court, adjudicative body, individual or 
entity, counsel or other representative, or witness. Such a disclosure 
may be made in the event that one of the parties listed below is 
involved in the litigation, or has an interest in the litigation:
    (i) ED or any component of the Department; or
    (ii) Any ED employee in his or her official capacity; or
    (iii) Any employee of ED in his or her individual capacity where 
the Department has agreed to represent the employee; or
    (iv) The United States, where ED determines that litigation is 
likely to affect the Department or any of its components.
    (f) Employment, benefit, and contracting disclosure. (1) For 
Decisions by ED. ED may disclose a record from this system of records 
as a routine use to a Federal, State, or local agency maintaining 
civil, criminal, or other relevant enforcement or other pertinent 
records, such as current licenses, if the disclosure is necessary to 
obtain a record ED believes may be relevant to an ED decision 
concerning the hiring, retention of, or any personnel action concerning 
an employee, the issuance of a security clearance, the letting of a 
contract, or the issuance of a license, grant, or other benefit.
    (2) For decisions by other public agencies and professional 
licensing organizations. ED may disclose information from this system 
of records as a routine use to a Federal, State, local, or foreign 
agency or other public authority or professional licensing 
organization, in connection with the hiring or retention of an 
employee, 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.
    (g) Employee grievance, complaint or conduct disclosure. If a 
record maintained in this system of records is relevant to an employee 
grievance or complaint or employee discipline or competence 
determination proceedings of another party of the Federal Government, 
ED may disclose the record as a routine use in the course of the 
proceedings.
    (h) Labor organization disclosure. Where a contract between a 
component of ED and a labor organization recognized under Chapter 71, 
U.S.C. Title V provides that the Department will disclose personal 
records relevant to the organization's mission, records in this system 
of records may be disclosed as a routine use to such an organization.
    (i) Contract disclosure. When ED contemplates that it will contract 
with a private firm for the purpose of collating, analyzing, 
aggregating, or otherwise refining records or performing any other 
function with respect to the records in this system, relevant records 
will be disclosed to such a contractor. The contractor shall be 
required to maintain Privacy Act Safeguards with respect to such 
records.
    (j) Disclosure to the Department of Justice. ED may disclose 
information from this system of records as a routine use to the 
Department of Justice to the extent necessary for obtaining its advice 
on any matter relevant to an audit, inspection, or other inquiry 
related to the Department's responsibilities under Title IV of the 
Higher Education Act of 1965.
    (k) Research disclosure. When the appropriate official of ED 
determines that an individual or organization is qualified to carry out 
specific research, that official may disclose information from this 
system of records to that researcher solely for the purpose of carrying 
out that research. The researcher shall be required to maintain Privacy 
Act Safeguards with respect to such records.
    (l) Computer matching disclosure. 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 
application for, or participation in, any grant or loan program 
administered by ED. The purposes of these disclosures may be to 
determine program eligibility and benefits, enforce the condition and 
terms of a loan or grant, permit the servicing and collecting of the 
loan or grant, prosecute or enforce debarment, suspension, and 
exclusionary actions, counsel the individual in repayment efforts, 
investigate possible fraud and verify compliance with program 
regulations, locate a delinquent or defaulted debtor, and initiate 
legal action against an individual involved in program fraud or abuse.
    Among other disclosures, this routine use authorizes disclosure to 
any other Federal agency, including the Defense Manpower Data Center, 
Department of Defense, for the purposes of identifying and locating 
individuals who are delinquent in their repayment of debts owed to the 
U.S. Government under title IV, HEA programs of ED, in order to collect 
the debts under the provisions of the Debt Collection Act of 1982 
(including 31 U.S.C. Chapter 37 and 5 U.S.C. 5514) and 31 CFR part 31 
by voluntary repayment or by administrative or salary offset.
    (m) FOIA advice disclosure. In the event that ED deems it desirable 
or necessary, in determining whether particular records are required to 
be disclosed under the Freedom of Information Act, disclosure may be 
made to the Department of Justice or the Office of Management and 
Budget for the purpose of obtaining their advice.
    (n) Congressional member disclosure. ED may disclose information 
from this system of records to a congressional office from the record 
of an individual in response to an inquiry from the congressional 
office made at the written request of that individual; however, the 
Member's right to the information is no greater than the right of the 
individual who requested it.
    Disclosures pursuant to 5 U.S.C. 552a(b)(12): ED may disclose to a 
consumer reporting agency information regarding a claim which is 
determined to be valid and overdue as follows: (1) The name, address, 
social security 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 31 U.S.C. 3711(f). A consumer reporting agency 
to which these disclosures may be made is defined at 15 U.S.C. 1681a(f) 
and 31 U.S.C. 3701(a)(3).
    The records are maintained in either hard copy, microfilm, magnetic 
tape, or other electronic media.
    The file is indexed by social security number or name. Data for 
loans made under the Federal Direct Student Loan Program, FISL Program, 
Federal Perkins Loan (formerly National Direct Student Loan) Program, 
Federal Pell Grant Program, and some FFELs are retrievable by social 
security number.
    All physical access to the Department of Education site, and the 
sites of Department contractors where this system of records is 
maintained, is controlled and monitored by security personnel who check 
each individual entering the building for his or her employee or 
visitor badge.
    The computer system employed by the Department of Education offers 
a high degree of resistance to tampering and circumvention. This 
security system limits data access to Department of Education 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.
    Records of individual loans may be destroyed five years after 
cancellation, forgiveness or final repayment of the loan. Records of 
Federal Supplemental Educational Opportunity Grant recipients may be 
destroyed five years after the fiscal operations report is filed. 
Records of Federal Pell Grant recipients may be destroyed five years 
after the initial award year has ended, as set forth in appropriate 
record retention schedules.
    The System Manager for the title IV program file is the Director, 
Program Systems Support, Student Financial Assistance Programs, U.S. 
Department of Education, 400 Maryland Avenue, SW., room 4640, GSA 
Regional Office Building 3, Washington, DC 20202-5258.
    If an individual wishes to determine whether a record exists 
regarding him or her in the system of records, the individual should 
provide to the system manager his or her name, date of birth, social 
security number, and the name of the school or lender from which the 
loan or grant was obtained. Requests for notification about whether the 
system of records contains information about an individual must meet 
the requirements of the Department of Education's Privacy Act 
regulations at 34 CFR 5b.5.
    If an individual wishes to gain access to a record in this system, 
he or she should 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 Department of 
Education's Privacy Act regulations at 34 CFR 5b.5.
    If an individual wishes to change the content of a record in the 
system of records, he or she should contact the system manager with the 
information described in the notification procedure, identify the 
specific items to be changed, and provide a written justification for 
the change. Requests to amend a record must meet the requirements of 
the Department of Education's Privacy Act regulations at 34 CFR 5b.7.
    Information is obtained from reports from borrowers and their 
families, lenders, schools, examining or treating physicians, 
employers, credit agencies, Federal and State governmental agencies, 
and State or private nonprofit guaranty agencies. However, lenders and 
guaranty agencies are not a source of information for participants in 
the Federal Direct Student Loan Program, since the Department maintains 
individual records of borrowers for this program.
    None.

[FR Doc. 94-8679 Filed 4-11-94; 8:45 am]
BILLING CODE 4000-01-P