[Federal Register Volume 59, Number 124 (Wednesday, June 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15687]
[[Page Unknown]]
[Federal Register: June 29, 1994]
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DEPARTMENT OF EDUCATION
Privacy Act of 1974; System of Records
AGENCY: Department of Education.
ACTION: Notice of a new system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the
Department of Education (ED) publishes this notice of a new system of
records for the National Student Loan Data System as authorized by the
Higher Education Act of 1965, as amended.
This system is being designed to maintain loan-level information on
Title IV aid recipients. The NSLDS is being developed in three phases
with thirteen major capabilities. Phase I will provide a central
verification system for use in determining the eligibility of Title IV
aid applicants with respect to prior aid, existing defaults and grant
overpayments, default rate calculations, audit planning, research
studies support and policy development support, budget analysis and
development, monitoring of lender and guaranty agency billings, and GSL
Program administration assessment. Phase II will track changes in the
enrollment status of students, as reported by schools in a standard
format (Standardized Student Status Confirmation Reporting), track loan
transfers, track borrowers, and provide default prevention notices to
schools (preclaims assistance and supplemental preclaims assistance
notification). Phase III will provide financial aid transcript
information to schools electronically and Credit Reform Act (CRA)
support (requirements for support of the CRA currently includes
providing, to the Office of Management and Budget, data on lender
interest benefits and special allowance payments, defaulted loan
balances, and supplemental preclaims assistance payments information).
The primary function of the NSLDS will not be the collection of
student loans. However, the Department expects as a result of closer
monitoring of financial aid transactions, that the Department will
collect information that will aid in the collection of some loan and
grant overpayments. Thus, a secondary purpose of this systems of
records is to aid in the collection of debts owed under Title IV, HEA
programs.
DATES: Comments on the proposed routine uses for this system of records
must be submitted by 30 days after the publication in the Federal
Register. The Department filed a report of the new 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 June 23, 1994. This system
of records will become effective after the 40-day period for OMB review
of the system expires on August 2, 1994, unless OMB gives specific
notice within the 40 days that the system is not approved for
implementation or requests additional time for OMB review. The
Department will publish any changes to the routine uses that are a
result of the comments.
ADDRESSEES: Comments on the proposed routine uses should be addressed
to the Privacy Act Officer; Information Management and Compliance
Division; Office of Information Resources Management; 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 and D Streets, SW., between the hours of 8 a.m. and
4:30 p.m., Monday through Friday of each week except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Susan Pentecost; Branch Chief,
National Student Loan Data System; U.S. Department of Education; 400
Maryland Avenue, SW.; Room 4640; GSA Regional Office Building 3;
Washington, DC 20202; (202) 708-8125. Individuals who are hearing
impaired may call the Federal Dual Party Relay Service at 1-800-877-
8339 ( in the Washington, DC 202 area code, telephone 708-9300) between
8 a.m. and 7 p.m., Eastern time, Monday through Friday.
SUPPLEMENTARY INFORMATION: The Privacy Act of 1974 (see 5 U.S.C.
552a(e)(4)) requires the Department to publish in the Federal Register
this notice of a new system of records. The Department's regulations
implementing the Privacy Act of 1974 are contained in the Code of
Federal Regulations (CFR) at 34 CFR part 5b.
The NSLDS database is being established to comply with amendments
to Section 485B of the Higher Education Act (HEA) of 1965.
The NSLDS is being developed in three phases with thirteen major
capabilities. Phase I will provide a central verification system for
use in determining the eligibility of Title IV aid applicants with
respect to prior aid, existing defaults and grant overpayments, default
rate calculations, audit planning, research studies support and policy
development support, budget analysis and development, monitoring of
lender and guaranty agency billings, and GSL Program administration
assessment. Phase II will track changes in the enrollment status of
students, as reported by schools in a standard format (Standardized
Student Status Confirmation Reporting), track loan transfers, track
borrowers, and provide default prevention notices to schools (preclaims
assistance and supplemental preclaims assistance notification). Phase
III will provide financial aid transcript information to schools
electronically and Credit Reform Act support (requirements for support
of the CRA currently includes providing, to the Office of Management
and Budget, data on lender interest benefits and special allowance
payments, defaulted loan balances, and supplemental preclaims
assistance payment information).
The primary function of the NSLDS will not be the collection of
student loans. However, the Department expects as a result of closer
monitoring of financial aid transactions, that the Department will
collect information that will aid in the collection of some loan and
grant over payments. Thus, a secondary purpose of this systems of
records is to aid in the collection of debts owed under Title IV, HEA
programs.
The NSLDS database will be used to pre-screen Title IV aid
applications to prevent the award of funds to ineligible applicants.
The database will also be used to provide the following information:
(1) A centralized verification system for determining the eligibility
of Title IV aid applicants; (2) shared access to comprehensive student
loan database; (3) a borrowers profile history to support research and
analysis of student financial assistance program issues; (4) a database
on participating lenders, guaranty agency and school profiles; and (5)
an efficient data transfer. This notice includes proposed routine uses
for the information contained in the system of records.
The Department will collect, for each student loan stored on the
NSLDS, data about the identification of borrowers; loan type(s) and
amount(s); total amount of all student loans received and remaining
balance(s); name of guaranty agency, lender, holder, and servicer;
school attended when loan was made; and defaults, deferments,
forbearance, and cancellations.
Access to the data maintained on the NSLDS database will be
accessible by guaranty agencies, schools and ED. Data in the NSLDS will
be maintained on mainframe computers with back ups of the data stored
on magnetic media. Direct access is restricted to authorized contract
and agency personnel in the performance of their official duties.
Dated: June 23, 1994.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
The Assistant Secretary for Postsecondary Education publishes a
notice of a new system of records to read as follows.
18-40-0039
National Student Loan Data System.
None.
E-Systems, Greenville Division, P.O. Box 6056, Greenville, Texas
75403-6056.
Borrowers who have applied for loans under the Federal Direct
Student Loan Program; borrowers who applied for loans under the Federal
Insured Student Loan (FISL) Program; borrowers who applied for loans
under the Federal Family Education Loan (FFEL) Program; borrowers who
applied for loans under the Federal Perkins Loan Program (including
National Defense Student Loans and National Direct Student Loans);
borrowers who had a loan discharged in bankruptcy under the FISL
Program and on which ED paid a claim to the holder of the loan;
borrowers who defaulted on their loans or the borrower died or became
disabled; 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 the Department.
Contains records regarding (1) an applicant's demographic
background; (2) loan and educational status; (3) data on family income;
(4) name; (5) social security number; (6) address; (7) amount of claim;
(8) forbearance; (9) cancellation; (10) disability; (11) deferment
information; (12) profile information on schools, lenders and guaranty
agencies; (13) student/borrower date of birth; (14) loan level detail;
(15) school(s) attended by student and/or received aid; (16) loan
repayment disclosure information; (17) student/borrower anticipated
school completion date; (18) indicator of lender-of-last-resort loans;
(19) loan refund/cancellation information; and (20) grant overpayment
date and amount.
Higher Education Act of 1965, Title IV-A through IV-G, as amended,
(20 U.S.C. 1092b).
This system of records is maintained for the purpose(s) of: (1)
Providing pre-screening for Title IV aid eligibility; (2) providing
default rate calculations for schools, guaranty agencies, and lenders;
(3) reporting changes in student/borrower enrollment status (Student
Status Confirmation Reporting (SSCR)); (4) preparing financial aid
transcripts (FAT); (5) assisting guaranty agencies in helping lenders
collect delinquent loans (pre-claims assistance (PCA)/supplemental PCA
support); (6) providing audit and program review planning; (7)
supporting research studies and policy development; (8) conducting
budget analysis and development; (9) tracking loan transfers; (10)
assessing FFEL Program administration of guaranty agencies, schools,
and lenders; (11) tracking borrowers; (12) providing information that
will support Credit Reform Act of 1992 requirements; (13) providing
information to track refunds/cancellations; and (14) collecting debts
owed to the Department under Title IV of HEA.
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) Records may be disclosed for the
following program purposes to the persons listed in (a)(2): To verify
the identity of the applicant and assist with the determination of
program eligibility and benefits, provide additional borrower profile
information, to support research and analysis of student financial
assistance program issues, provide lender, school, and guaranty agency
profile information, provide default rate calculations, support audit
and program review planning, support budget analysis and development,
support loan transfer tracking, support assessment of the FFEL Program
administration of guaranty agencies, schools, and lenders, support
borrower tracking, provide a standardized student status confirmation
report, provide financial aid transcript information, provide pre-
claims assistance/supplemental pre-claims assistance notification, and
support for credit reform act (CRA) requirements (requirements for
support of the CRA currently includes providing, to the Office of
Management and Budget, data on lender interest benefits and special
allowance payments, defaulted loan balances, and supplemental preclaims
assistance payments information).
(2) The information may be furnished to Federal, State, or Local
agencies, to guaranty agencies, to educational and financial
institutions, to agency contractors, to the Internal Revenue Service,
to the General Accounting Office, and to the Office of Management and
Budget.
(b) 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 disclosure may be made in the event that
one of the parties listed below is involved in the litigation, or has
an interest in 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 employee; 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 notice 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.
(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) 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.
(e) 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.
(f) 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.
(g) 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 research. The researcher shall be required to maintain Privacy Act
safeguards with respect to such records.
(h) 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.
(i) 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.
(j) 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.
(k) 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.
(l) 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; the Member's
right to the information is no greater than the right of the individual
who requested it.
Disclosure pursuant to 5 U.S.C. 552a(b)(12): The Department may
disclose to a consumer reporting agency information regarding a claim
which is determined to be valid and overdue as follows: (1) The name,
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 (f). A consumer
reporting agency to which these disclosures may be made is defined at
31 U.S.C., 15 U.S.C. 1681a(f), and 3701 (a)(3).
The records are maintained on magnetic tape and computer disk
media.
Data is retrieved by matching social security number, name and date
of birth.
All physical access to the sites of the contractor 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 systems limits data access
to Department of Education and contract staff on a ``need to know''
basis, including external users of the system (guaranty agency and
school personnel) and controls individual users' ability to access and
alter records within the system. All users of this system are given a
unique user ID with a personal identifier. All interactions by
individual users with the system are recorded.
Records of individual loans will be archived twelve months after a
loan is closed. The loan will be archived to optical disk for
economical and efficient storage. The Department will retain and
dispose of NSLDS records in accordance with the ED Comprehensive
Records Disposition Schedule, Part 10 item 16 (a)(b)(c)(d)(e).
Director, Division of Program Operations, Room 4640, GSA Building,
7th and D Streets, SW., Washington, DC 20202.
If an individual wishes to determine whether a record exists
regarding him or her in this system of records, the individual should
provide 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 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.
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 item(s) 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 Privacy Act regulations at 34 CFR 5b.7.
Information is obtained from guaranty agencies, schools, and the
Title IV Program File (Privacy Act System of Records Number 18-4000-
24). However, lenders and guarantee agencies are not a source of
information for participants in the Federal Direct Students Loan
Program since the Department maintains individual records of borrowers.
None.
[FR Doc. 94-15687 Filed 6-28-94; 8:45 am]
BILLING CODE 4000-01-P