[Federal Register Volume 64, Number 104 (Tuesday, June 1, 1999)]
[Notices]
[Pages 29298-29302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13918]


-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION


Privacy Act of 1974; System of Records

AGENCY: Department of Education.

ACTION: Notice of a new system of records.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Acting Chief Information Officer for the Department of Education 
publishes this Notice of a New System of Records for the Student 
Account Manager System, as authorized by the Higher Education Act of 
1965, Title IV-A through IV-H, as amended (20 U.S.C. 1092b). This 
system contains a data base of student accounts containing records of 
activities relative to Federal loan and grant transactions. The 
Secretary 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 1, 1999. The Department filed a 
report of the new, amended, altered and deleted systems of records, 
which included this system, 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 May 
14, 1999. This system of records becomes effective after the 30-day 
period for OMB review of the system expires on June 14, 1999 unless OMB 
gives specific notice within the 30 days that the system is not 
approved for

[[Page 29299]]

implementation or requests an additional 10 days for its review.

ADDRESSES: All comments on the proposed routine uses should be 
addressed to Bill Burrow, Office of Chief Information Officer, Acting 
Information Management Group Leader, U.S. Department of Education, 400 
Maryland Avenue SW., Regional Office Building, Room 5624, Washington, 
DC 20202-4580. Comments may also be sent through the Internet to:
C[email protected]
    You must include the term ``System of Records'' in the subject line 
of your electronic message.
    All comments submitted in response to this notice are available for 
public inspection, during and after the comment period, in Room 5624, 
Regional Office Building, 7th and D Streets, SW., Washington, DC, 
between the hours of 8:00 a.m. and 4:30 p.m., Eastern time, Monday 
through Friday, 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) 
205-9265 or (202) 260-0250. 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.

FOR FURTHER INFORMATION CONTACT: Bill Burrow, Office of Chief 
Information Officer, Acting Information Management Group Leader, U.S. 
Department of Education, 400 Maryland Avenue, SW., Room 5624, 
Washington, DC 20202. Telephone number: (202) 401-0250. 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, audiotape, or computer 
diskette) on request to the contact person listed in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION:

Electronic Access to This Document

    Anyone may view this document, as well as all other Department of 
Education 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 PDF you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either or the previous sites. If you 
have questions about using 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) 219-1511 
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.

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.
    The Privacy Act of 1974 (Privacy Act), 5 U.S.C. 552a, applies to 
information about individuals that contains individually identifiable 
information and that may be 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-driven, is called a ``system of 
records.'' The Privacy Act requires each agency to publish notices of 
systems of records in the Federal Register and to prepare reports to 
the Office of Management and Budget (OMB) whenever the agency publishes 
a new or ``altered'' system of records.
    The Student Account Manager system of records is a part of the 
Access America for Students pilot project. The pilot project is 
intended to improve the administration of the Federal loan and grant 
programs authorized by the Higher Education Act of 1965, title IV-A 
through IV-H, as amended (20 U.S.C.1092b).
    The Student Account Manager system is being established for three 
purposes: (1) To give students a single point of contact for 
information, statements, and customer service concerning their Federal 
student financial assistance (loans and grants) from various programs 
and sources; (2) to provide eligible institutions of higher education 
with a standardized method for the receipt of Title IV student 
financial assistance; and (3) to create summary reports for Federal 
loan and grant funding sources and program offices for loans and grants 
delivered through the Student Account Manager.
    Information in the system includes demographic information 
identifying the student or borrower, Federal loan and grant funding 
information, and Federal loan and grant transaction information. The 
Secretary of Education uses the information in this system to simplify 
the flow of student financial assistance funds and information to 
students and schools.
    Direct access is restricted to authorized agency and contractor 
staff in the performance of their official duties. The information is 
kept in computer mainframe databases at contractor sites in secured 
buildings. 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 Secretary offers a high degree 
of resistance to tampering and circumvention. This security system 
limits data access to the Department of Education (ED), agents of ED 
(including schools and funding sources), 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.

    Dated: May 27, 1999.
Thomas P. Skelly,
Acting Chief Information Officer.

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

    The Chief Information Officer of the U.S. Department of Education 
publishes notice of system 18-11-08, the ``Student Account Manager 
System.''
18-11-08

SYSTEM NAME:
    Student Account Manager System.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION(S):
    Program Systems Service, Office of Student Financial Assistance 
Programs, U.S. Department of Education, Seventh and D Streets, SW., 
Room 4640, ROB-3, Washington, DC 20202.
    National Computer Systems, 2510 North Dodge Street, Iowa City, Iowa 
52240.

[[Page 29300]]

    Total Systems Services, Inc, 6101 Stone Mill Drive, Columbus, GA; 
Golden Retriever System, 8 N. Roosevelt Avenue, Chandler, AZ 85221.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The Student Account Manager System contains student financial 
assistance records about students and/or borrowers both who have 
applied for loans under any Title IV Federal loan program and students 
who have applied for grants under any Title IV Federal grant program.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The Student Account Manager System contains records relating to a 
student and/or borrower's originated awards and disbursements of Title 
IV financial assistance. The system contains three data element types 
as outlined below: demographic information, such as student and/or 
borrower name, mailing and permanent address, e-mail address, current 
and original Social Security number, phone number, date of birth, 
student account number, loan and grant funding and award information, 
including the Title IV code for the school(s) for which students and/or 
borrowers have requested determinations of Federal financial assistance 
eligibility, the origination date and I.D., the funding source I.D., 
loan holder, credit limit or award amount, loan and grant transaction 
information, including the transaction date, posting date, disbursement 
amount, acceptance/rejection field, batch number.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Higher Education Act of 1965, Title IV-A through IV-H, as amended, 
(20 U.S.C.1092b).

PURPOSE(S):
    This system of records is provided for the purposes of:
    (1) Giving students a single point of contact for information, 
statements, and customer service concerning their Federal student 
financial assistance (loans and grants) from various programs and 
sources;
    (2) Providing eligible institutions of higher education with a 
standardized method for the receipt of Title IV student financial 
assistance; and
    (3) Creating summary reports for Federal loan and grant funding 
sources and program offices for loans and grants delivered through the 
Student Account Manager.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    The Department of Education (Department) may disclose information 
contained in a record in this system of records under the routine uses 
listed in this system of records without the consent of the individual 
if the disclosure is compatible with the purposes for which the record 
was collected. These disclosures may be made on a case-by-case basis 
or, if the Department has complied with the computer matching 
requirements of the Act, under a computer matching agreement.
    (1) Program purposes. Records may be disclosed for the following 
program purposes:
    (a) To report disbursement activity, disclosures may be made to 
appropriate guaranty agencies, educational and financial institutions, 
and Federal agencies.
    (b) To deliver Federal student assistance funds to the educational 
institution at which the student is enrolled, disclosures may be made 
to that educational institution.
    (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 prosecutive responsibility 
within the receiving entity's jurisdiction.
    (3) Enforcement disclosures. 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 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, or executive order, 
rule, regulation, or order issued pursuant thereto.
    (4) Litigation disclosure and Alternative Dispute Resolution (ADR) 
Disclosures.
    (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 of Education, or any component of the 
Department; or
    (ii) Any Department employee in his or her official capacity; or
    (iii) Any Department employee in his or her individual capacity if 
the Department of Justice (DOJ) has agreed to provide or arrange for 
representation for the employee; or
    (iv) Any Department employee 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.
    (b) Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
litigation or ADR, the Department may disclose those records as a 
routine use to the DOJ
    (c) Administrative disclosures. If the Department determines that 
disclosure of certain records to an adjudicative body before which the 
Department is authorized to appear, an individual or entity designated 
by the Department or otherwise empowered to resolve or mediate disputes 
is relevant and necessary to the administrative litigation, the 
Department may disclose those records as a routine use to the 
adjudicative body, individual, or entity.
    (d) Parties, counsels, representatives and witnesses. If the 
Department determines that disclosure of certain records to a party, 
counsel, representative or witness in an administrative proceeding is 
relevant and necessary to the litigation, the Department may disclose 
those records as a routine use to the party, counsel, representative or 
witness.
    (5) Employment, Benefit, and Contracting Disclosure.
    (a) For Decisions by the Department. The Department may disclose a 
record to a Federal, State, or local agency maintaining civil, 
criminal, or other relevant enforcement or other pertinent records, or 
to another public authority or professional organization, if necessary 
to obtain information relevant to a Department decision concerning the 
hiring or retention of an employee or other personnel action, the 
issuance of a security clearance, the letting of a contract, or the 
issuance of a license, grant, or other benefit.
    (b) For Decisions by Other Public Agencies and Professional 
Organizations. The Department may disclose a records to a Federal, 
State, local, or foreign agency or other public authority or 
professional organization, in connection with the hiring or retention 
of an employee or other

[[Page 29301]]

personnel action, the issuance of a security clearance, the reporting 
of an investigation of an employee, the letting of a contract, or the 
issuance of a license, grant, or other benefit, to the extent that the 
record is relevant and necessary to the receiving entity's decision on 
the matter.
    (6) Employee Grievance, Complaint, or Conduct Disclosure. The 
Department may disclose a record in this system of records to another 
agency of the Federal Government if the record is relevant to one of 
the following proceedings regarding a present or former employee of the 
Department: complaint, grievance, discipline or competence 
determination proceedings. The disclosure may only be made during the 
course of the proceeding.
    (7) Labor Organization Disclosure. A component of the Department 
may disclose records to a labor organization if a contract between the 
component 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.
    (8) Freedom of Information Act (FOIA) Advice Disclosure. The 
Department may disclose records to the Department of Justice and the 
Office of Management and Budget if the Department concludes that 
disclosure is desirable or necessary in determining whether particular 
records are required to be disclosed under the FOIA.
    (9) Disclosure to the Department of Justice (DOJ). The Department 
may disclose records to the DOJ to the extent necessary for obtaining 
DOJ advice on any matter relevant to an audit, inspection, or other 
inquiry related to the programs covered by this system.
    (10) Contract Disclosure. If the Department contracts with an 
entity for the purposes of performing any function that requires 
disclosure of records in this system to employees of the contractor, 
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.
    (11) Research Disclosure. The Department may disclose records to a 
researcher if an appropriate official of the Department determines that 
the individual or organization to which the disclosure would be made is 
qualified to carry out specific research related to functions or 
purposes of this system of records. 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 shall be required to maintain 
Privacy Act safeguards with respect to the disclosed records.
    (12) Congressional member disclosure. The Department may disclose 
information to a member of 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.
    (13) Disclosure to the Office of Management and Budget (OMB) for 
Credit Reform Act (CRA) Support. The Department may disclose records to 
OMB as necessary to fulfill CRA requirements.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12): The Department may 
disclose to a consumer reporting agency information regarding a claim 
by the Department which is determined to be valid and overdue as 
follows: (1) The name, address, taxpayer identification number and 
other information necessary to establish the identity of the individual 
responsible for the claim; (2) the amount, status, and history of the 
claim; and (3) the program under which the claim arose. The Department 
may disclose the information specified in this paragraph under 5 U.S.C. 
552a(b)(12) and the procedures contained in 31 U.S.C. 3711(e). A 
consumer reporting agency to which these disclosures may be made is 
defined at 31 U.S.C. 3701(a)(3).

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISCLOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    The records at the National Computer Systems (NCS) are maintained 
on the mainframe at the NCS data center in Iowa City, IA and archived 
onto magnetic tape. Total System records are maintained on a mainframe 
database in Columbus, GA and backed up onto magnetic tapes. Golden 
Retriever System records are maintained on a sequel server database in 
Chandler, AZ and backed up onto CD-ROM.

RETRIEVABILITY:
    Each student and/or borrower's file is indexed by social security 
number and the first two characters of their last name.

SAFEGUARDS:
    All users of this system are given a unique user ID with a personal 
identifier. Student and parent users are assigned an Electronic Access 
Code (EAC) through the Federal Student Aid Application Files Privacy 
Act system of records number 18-11-01 by which they can access their 
accounts. All physical access to the Department's 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 offers a high degree 
of resistance to tampering and circumvention. This security system 
limits data access to the Department, agents of the Department 
(including schools and funding sources), 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 passwords.

RETENTION AND DISPOSAL:
    Federal Loan Records: The Department will retain and dispose of 
loan records in accordance with the Department's Records Disposition 
Schedules (ED/RDS), Part 10, Item 16. Individual records (applications, 
certifications, disbursements, correspondence, and related records) for 
Federal loans may be destroyed three years after cancellation, 
forgiveness or final repayment of the Loan (ED/RDS, Part 10, Item 16). 
Electronic Federal loan records will be kept online and easily 
available for 24 months after reconciliation with the funding source, 
then retained in accordance with ED/RDS, Part 10, Item 16.
    Federal Pell Grant Records: ED will retain and dispose of Pell 
Grant records in accordance with ED/RDS, Part 10, Item 17. Records of 
Federal Pell Grant recipients (applications, payment, correspondence, 
and related records) will be transferred to a Federal Records Center 
after final payment to grantee. Individual Pell Grant records may be 
destroyed 15 years after final payment to grantee (ED/RDS, Part 10, 
Item 17). Individual records for unapproved Federal Pell Grant 
applications will be transferred to a Federal Records Center 120 days 
after a rejection or withdrawal, and may be destroyed three years after 
date of rejection or withdrawal (ED/RDS, Part 10, Item 17(d)). 
Electronic Federal Pell Grant records will be kept online and easily 
available for 24 months after reconciliation with the

[[Page 29302]]

funding source, then retained in accordance with ED/RDS, Part 10, Item 
17.

SYSTEM MANAGERS AND ADDRESS:
    Service Director, Program Systems Service, Office of Student 
Financial Assistance Programs, U.S. Department of Education, 400 
Maryland Avenue, SW., ROB-3, Room 4640, Washington, DC 20202.

NOTIFICATION PROCEDURE:
    If an individual wishes to determine whether a record exists 
regarding him or her in this system of records, the individual may gain 
access to the system via the Internet or by contacting the system 
administrator through the Student Account Manager's customer service e-
mail address or toll-free telephone number. (To obtain access to 
records by telephone, the student must first authorize telephone access 
through the Student Account Manager's website using his or her 
Electronic Access Code.) The student must provide the system manager 
with his or her name, date of birth, Social Security number, and 
Electronic Access Code (EAC). Requests for notification about an 
individual must meet the requirements of the regulations at 34 CFR 
5b.5, including proof of identity. Individuals may also present their 
requests in person at any of the locations identified for this system 
of records or address their requests to the system manager at the 
following address: Program Systems Service, Office of Student Financial 
Assistance Programs, U.S. Department of Education, 400 Maryland Avenue, 
SW., ROB-3, Room 4640, Washington, DC 20202.

RECORD ACCESS PROCEDURES:
    If an individual wishes to gain access to a record in this system, 
he or she may do so via the Internet, by calling the toll free customer 
service phone number using a touch-tone telephone, or by contacting the 
system manager through the Student Account Manager's customer service 
e-mail address or toll-free telephone number. (To obtain access to 
records by telephone, the student must first authorize telephone access 
through the Student Account Manager's website using his or her 
Electronic Access Code.)

CONTESTING RECORD PROCEDURES:
    If an individual wishes to change the contents of a record in the 
system of records, he or she may challenge a transaction by contacting 
the system manager by telephone or sending written notice to the 
Student Account Manager's customer assistance area and providing the 
information described in the notification procedure, identifying the 
specific item(s) to be changed, and providing a written justification 
for the change, including any supporting documentation.

RECORD SOURCE CATEGORIES:
    Information is obtained from schools, lenders, guaranty agencies, 
students, borrowers, the Title IV Program Files (Privacy Act system of 
records number 18-11-05), the Federal Student Aid Application Files 
Privacy Act system of records number 18-11-001), the Direct Loan 
Origination Center, and the Recipient Funds Management System (RFMS).

SYSTEM EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 99-13918 Filed 5-28-99; 8:45 am]
BILLING CODE 4000-01-U