[Federal Register Volume 63, Number 135 (Wednesday, July 15, 1998)]
[Notices]
[Pages 38242-38245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18872]



[[Page 38241]]

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Part IV





Department of Education





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Privacy Act of 1974; System of Records; Notice

  Federal Register / Vol. 63, No. 135 / Wednesday, July 15, 1998 / 
Notices  

[[Page 38242]]



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 (the Department) publishes this notice of a new 
system of records for the Receivables Management System, as authorized 
by the Federal Claims Collection Act of 1966, Debt Collection Act of 
1982, and the Debt Collection Improvement Act of 1996. This system 
contains a data base of accounts receivable for claims for payment of 
debts due the Department. This system contains records of activities 
relative to the collection of those debts.. The Department seeks 
comments on the proposed routine uses of this system of records.

DATES: Comments on proposed routine uses for this system of records 
must be received on or before July 17, 1998. The Department filed a 
report of the new system of records with the Chairman of the Committee 
on Governmental Affairs of the Senate, the Chairman of the Committee on 
Government Reform and Oversight 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 July 
10, 1998. This system of records will become effective after the 30-day 
period for OMB review of the system expires on August 10, 1998, unless 
OMB gives specific notice within the 30 days that the system is not 
approved for implementation or requests an additional 10 days for its 
review. The Department will publish any changes to the routine uses 
that are a result of the comments.

ADDRESSES: Comments on the proposed routine uses should be addressed to 
the Privacy Act Officer, Information Management Group, Office of the 
Chief Financial and Chief Information Officer, U.S. Department of 
Education, 600 Independence Avenue SW., Room 5624, General Services 
Administration (GSA), Regional Office Building 3, 
Washington, DC 20202-4651. Comments may also be sent through the 
Internet to: [email protected]
    You must include the term ``Receivables Management System'' in the 
subject line of your electronic message.

FOR FURTHER INFORMATION CONTACT: Philip A. Maestri, Director, Financial 
Improvement and Receivables Group, Office of the Chief Financial 
Officer, U. S. Department of Education, 600 Independence Avenue, SW., 
Room 3117, Washington, DC 20202-4330. Telephone number: (202) 205-3511. 
Individuals who use a telecommunications device for the deaf (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.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotapes, or computer 
diskette) on request to the contact person listed in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION:

Invitation to Comment

    Interested persons are invited to submit comments and 
recommendations regarding proposed routine uses of this system.
    All comments submitted in response to the proposed routine uses 
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., Eastern time, 
Monday through Friday of each week except Federal holidays.
    On request the Department supplies an appropriate aid, such as a 
reader or print magnifier, to an individual with a disability who needs 
assistance to review the comments or other documents in the public 
rulemaking docket for this notice. An individual with a disability who 
wants to schedule an appointment for this type of aid may call (202) 
205-8113 or (202) 260-9895. An individual who uses a TDD may call the 
Federal Information Relay Service at 1-800-877-8339, between 8 a.m. and 
8 p.m., Eastern time, Monday through Friday.

Background

    The Privacy Act of 1974 (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) in 34 CFR part 5b.
    This system of records is being developed to comply with the 
Federal Claims Collection Act of 1966, Debt Collection Act of 1982, and 
the Debt Collection Improvement Act of 1996. The information collected 
in the Receivables Management System is to aid in the collection of 
funds due to the Department. Information in the system includes the 
name of debtor, address, Social Security Number, loan or case number or 
other debt identifier, telephone number, account history and supporting 
documents. The Department intends to use the information to notify a 
debtor of his or her liability to the Government and to take other 
actions to service the debt. The debt servicing staff of the Financial 
Improvement and Receivables Group, Office of the Chief Financial 
Officer, and its private contractors will have access to the 
information collected. Direct access is restricted to authorized agency 
and contractor staff in the performance of their official duties. The 
information will be kept in metal file drawers and computers in a 
secured building. All physical access to the sites of the contractor 
and the Department of Education where this system of records is 
maintained, is controlled and monitored by security personnel who check 
each individual entering the building for an employee's or a visitor's 
badge.
    The computer system employed by the Department offers a high degree 
of resistance to tampering and circumvention. This security system 
limits data access to the 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 are given a 
unique user ID with a personal identifier. All interactions by 
individual users with the system are recorded.

Electronic Access to this Document

    Anyone may view this document, as well as all other Department 
documents published in the Federal Register, in text or portable 
document format (pdf) on the World Wide Web at either of the following 
sites:

http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html

    To use the pdf you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the previous sites. If you 
have questions about using the pdf, call the U.S. Government Printing 
Office toll free at 1-888-293-6498.
    Anyone may also view these documents in text copy only on an 
electronic bulletin board of the Department. Telephone (202) 291-1411 
or, toll free, 1-800-222-4922. The documents are located under Option 
G--Files/Announcements, Bulletins and Press Releases.

    Note: The official version of this document is the document 
published in the Federal Register.


[[Page 38243]]


    Dated: July 10, 1998.
Donald Rappaport,
Chief Financial Officer.

(Catalog of Federal Domestic Assistance Number does not apply.)

    The Chief Financial Officer publishes notice of a new system of 
records to read as follows.
18-11-0028

SYSTEM NAME:
    Receivables Management System.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATIONS:
    U.S. Department of Education, Office of the Chief Financial 
Officer, Financial Improvement and Receivables Group, 600 Independence 
Avenue, SW., Washington, DC 20202-4330.
    U.S. Department of Education, Office of the Chief Information 
Officer, 7th and D Streets, SW., Washington, DC 20202.
    Nationwide Credit, Inc., Credit Claims and Collection, 2253 
Northwest Parkway, Marietta, Georgia 30067.
    Payco American Corporation, 180 N. Executive Drive, Brookfield, 
Wisconsin 53005-6011.
    CSC Credit Services, Inc., 7909 Parkwood Circle, Suite 200, 
Houston, Texas 77036-6565.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals covered by the system include: Persons billed by the 
Department of Education (the Department) for materials and services 
such as Freedom of Information Act requests and computer tapes of 
statistical data, persons ordered by a court of law to pay restitutions 
to the Department, individuals who received grants under the Bilingual 
Education Fellowship Program and who have not provided evidence to the 
Department of fulfilling their work requirements as described in the 
Bilingual Education Fellowship Program Contract, individuals who have 
received funds through the Rehabilitation Services Administration (RSA) 
Scholarship program and who have not provided evidence of fulfilling 
their obligations under that program, current and former Department 
employees who received overpayments on travel allowances or who 
received salary overpayments and the overpayments have not been waived 
by the Department, individuals who were overpaid or inappropriately 
paid under grant programs administered by the Department other than 
Title IV of the Higher Education Act of 1965, as amended (HEA) and 
claims against individuals, including orders by a court or other 
authority to make restitution for the misuse of Federal funds in 
connection with any program administered by the Department.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Documents maintained in the system include: activity logs, copies 
of checks, contracts, court orders, letters of notice, promissory 
notes, telephone logs, and related correspondence.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Federal Claims Collection Act of 1966; Debt Collection Act of 1982; 
and the Debt Collection Improvement Act of 1996.

PURPOSE(S):
    The Receivables Management System is a database system that is kept 
for servicing general consumer debts owed to the Department and issuing 
reports of operations and the status of accounts to the U.S. Department 
of Treasury (Treasury) and the Office of Management and Budget. The 
receivables are generated from bills to individuals for materials and 
services from the Department, claims arising from court-ordered 
restitutions for any program administered by ED, loans and overpayments 
to individuals under programs other than the student financial 
assistance programs authorized under Title IV of the Higher Education 
Act of 1965, as amended.
    Records will be used by debt servicing staff to bill debtors to the 
Department and collect the debts.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSE OF SUCH USES:
    Disclosures under the following routine uses may be made on a case-
by-case basis or, in appropriate circumstances under computer matching 
agreements authorized under the Privacy Act of 1974 (5 U.S.C. 552a). 
Records may be disclosed for the following debt servicing program 
purposes:
    (a) Program purposes: (1) To verify the identity and location of 
the debtor, disclosures may be made to credit agencies and Federal 
agencies. (2) To enforce the terms of a loan or where disclosure is 
required by Federal law, disclosure may be made to credit agencies, 
educational and financial institutions, and Federal, State, or local 
agencies.
    (b) Debt servicing. Records under routine use may be disclosed to 
the United States Department of the Treasury and privately contracted 
collection companies for debt servicing.
    (c) Litigation disclosure. (1) In the event that one of the parties 
listed below is involved in litigation, or has an interest in 
litigation, the Department may disclose certain records to the parties 
described in paragraphs (2), (3) and (4) of this routine use under the 
conditions specified in those paragraphs:
    (i) The Department, or any component of the Department;
    (ii) Any Department employee in his or her official capacity;
    (iii) Any employee of the Department in his or her individual 
capacity where the Department of Justice (DOJ) has agreed to provide or 
arrange for representation for the employee;
    (iv) Any employee of the Department in his or her individual 
capacity where the agency has agreed to represent the employee; or
    (v) The United States where the Department determines that the 
litigation is likely to affect the Department or any of its components.
    (2)  Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
litigation and is compatible with the purpose for which the records 
were collected. The Department may disclose those records as a routine 
use to the DOJ.
    (3) Administrative Disclosures. If the Department determines that 
disclosure of certain records to an adjudication body before which the 
Department is authorized to appear, an individual or entity designated 
by the Department or otherwise empowered to resolve disputes is 
relevant and necessary to the administrative litigation and is 
compatible with the purpose for which the records were collected, the 
Department may disclose those records as a routine use to the 
adjudicative body, individual or entity.
    (4) Opposing counsel, representatives and witnesses. If the 
Department determines that disclosure of certain records to an opposing 
counsel, representative or witness in an administrative proceeding is 
relevant and necessary to the litigation and is compatible with the 
purpose for which the records were collected, the Department may 
disclose those records as a routine use to the counsel, representative 
or witness.
    (d) 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

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appropriate agency, whether foreign, Federal, State, Tribal, or local, 
charged with the responsibility of investigating or prosecuting this 
violation or charged with enforcing or implementing the statute, or 
executive order or rule, regulation, or order issued pursuant thereto.
    (e) Contract disclosure. If the Department contracts with an entity 
for the purpose of performing any function that requires disclosure of 
records in this system to employees of the contractor, the Department 
may disclose the records as a routine use to those employees. Before 
entering into 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.
    (f) Disclosure to the Office of Management and Budget (OMB) for 
Credit Reform Act (CRA) Support. The Department may disclose 
individually identifiable information to OMB as necessary to fulfill 
CRA requirements.
    (g) Employee grievance, complaint or conduct disclosure. Records 
may be disclosed if a record maintained in this system of records is 
relevant to present or former employee grievance, complaint, discipline 
or competence determination proceedings of another agency of the 
Federal Government. In this case, the Department may disclose the 
record as a routine use in the course of the proceedings if the 
disclosure is compatible with the purposes for this system of records.
    (h) Labor organization disclosure. Records under this routine use 
may be disclosed whenever a contract between a component of the 
Department and a labor organization recognized under Title V of the 
United States Code, Chapter 71, provides that the Department will 
disclose personal records relevant to the organization's mission. The 
disclosures will be made only as authorized by law.
    (i) Research disclosure. Records under this routine use may be 
disclosed whenever an appropriate official of the Department determines 
that an individual or organization is qualified to carry out specific 
research related to functions or purposes of this system of records. 
The official 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 
is required to maintain Privacy Act safeguards with respect to these 
records.
    (j) Freedom of Information Act (FOIA) Advice Disclosure. Records 
under this routine use may be disclosed to the DOJ and the OMB in the 
event that the Department deems it desirable or necessary in 
determining whether particular records are required to be disclosed 
under the FOIA.
    (k) Disclosure to the Department of Justice. Records may be 
disclosed under this routine use to the DOJ from this system of records 
as a routine use 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.
    (l) Congressional member disclosure. The Department may disclose 
information from this system of records to a member Congress from the 
record of an individual 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 it.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records under this system will be kept on paper files in metal file 
cabinets and in data files in computers. They are stored in desk top 
and mainframe computers with records backed up on magnetic media.

RETRIEVABILITY:
    The data will be retrieved by name, loan or cage number, or Social 
Security Number.

SAFEGUARDS:
    All physical access to the sites of the Department of Education and 
the contractors where this system of records is maintained, are 
controlled and monitored by security personnel who check each 
individual entering the building for an employee's or visitor's badge.
    The computer system employed by the Department 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 
are given a unique user ID. All interactions by individual users with 
the system are recorded.
    At contractor sites, access to all automated data processing 
facilities are restricted by photo identification, sign-in and out 
logs, CYPHER locks, or ID card readers. Smoke and fire detection 
devices are installed and maintained operational on all facilities 
including tape and disk library areas.
    Physical security of the building involves restricted access as 
well as 24-hour security guard at the ground-floor entrance to the 
building. Access to building is obtained through the use of key entry 
doors. The system permits entry to an individual only with an access 
code.

RETENTION AND DISPOSAL:
    Records are disposed of in accordance with the National Archives 
and Records Administration's General Records Schedule (GRS) 6, items 
1a, 10b, and 10c; and GRS 7.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, Financial Improvement and Receivables Group, Office of 
the Chief Financial Officer, U.S. Department of Education, 600 
Independence Avenue, SW., Room 3117, Washington, DC 20202-4330. 
Telephone number: (202) 205-3511.

NOTIFICATION PROCEDURE:
    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, Social Security Number, 
case or loan number, or other debt identifying number. Requests for 
notification about an individual must meet the requirements in the 
Department's Privacy Act regulations at 34 CFR 5b.5.

RECORD ACCESS PROCEDURES:
    If an individual wishes to gain access to a record in this system, 
he or she should contact the system manager and provide information 
described in the notification procedure. Requests by an individual for 
access to a record must meet the requirements in the Department's 
Privacy Act regulations at 34 CFR 5b.5.

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CONTESTING RECORD PROCEDURES:
    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's Privacy Act regulations at 34 CFR 5b.7.

RECORD SOURCE CATEGORIES:
    Information is obtained from Department program offices, debtors, 
court orders, and probation officers.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 98-18872 Filed 7-14-98; 8:45 am]
BILLING CODE 4000-01-P