[Federal Register Volume 66, Number 104 (Wednesday, May 30, 2001)]
[Notices]
[Pages 29420-29422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13552]



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Part IV





Department of Education





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Privacy Act of 1974; System of Records; Notice

  Federal Register / Vol. 66, No. 104 / Wednesday, May 30, 2001 / 
Notices  

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DEPARTMENT OF EDUCATION


Privacy Act of 1974; System of Records

AGENCY: Student Financial Assistance, 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 entitled ``Student Authentication Network Audit File (18-11-
10).'' The system will contain information on individuals who have had, 
or attempted to have, their identity authenticated for the purpose of 
electronically completing and signing promissory notes and other 
documents under the Student Financial Assistance Programs authorized by 
Title IV of the Higher Education Act of 1965, as amended. The 
information maintained by the system includes the individual's name, 
Social Security Number, date of birth, and system-generated 
identifiers. The Department seeks comment on this new system of records 
described in this notice, in accordance with the requirements of the 
Privacy Act.

DATES: We must receive your comments on the proposed routine uses for 
this system of records included in this notice on or before June 29, 
2001. The Department filed a report describing the new system of 
records covered by this notice with the Chair of the Committee on 
Governmental Affairs of the Senate, the Chair of the Committee on 
Government Reform and Oversight of the House, and the Administrator of 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget (OMB) on May 24, 2001. This new system of records will 
become effective at the later date of: (1) The expiration of the 30-day 
period for OMB review on June 23, 2001, 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; or (2) 
June 29, 2001, unless the routine uses in the system of records need to 
be changed as a result of public comment or OMB review.

ADDRESSES: Address all comments about the routine uses in this system 
of records to Neil Sattler, Office of Chief Information Officer, 
Student Financial Assistance, U.S. Department of Education, 400 
Maryland Avenue, SW., Portals Building, room 604, Washington, DC 20202-
5132. Telephone: (202) 205-4348. If you prefer to send comments through 
the Internet, use the following address: [email protected].
    You must include the term ``Student Authentication System of 
Records'' in the subject line of the electronic message.
    During and after the comment period, you may inspect all comments 
about this notice in room 604, Portals Building, 1250 Maryland Avenue, 
SW., Washington, DC, between the hours of 8 a.m. and 4:30 p.m., Eastern 
time, Monday through Friday of each week except Federal holidays.

Assistance to Individuals With Disabilities in Reviewing the 
Comments on the Routine Uses in the System of Records

    On request, we supply 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 record 
for this notice. If you want to schedule an appointment for this type 
of aid, you may call (202) 205-8113 or (202) 260-9895. If you use a 
TDD, you may call the Federal Information Relay Service at 1-800-877-
8339.

FOR FURTHER INFORMATION CONTACT: Neil Sattler, Office of the Chief 
Information Officer, U.S. Department of Education, Student Financial 
Assistance, 400 Maryland Avenue, SW., Portals Building, room 604, 
Washington, DC 20202-5132. Telephone: (202) 205-4348. If you use a 
telecommunications device for the deaf (TDD), you may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed in the preceding 
paragraph.

Introduction

    The Privacy Act (5 U.S.C. 552a) requires the Department to publish 
in the Federal Register this notice of a new system of records managed 
by the Department. The Department's regulations implementing the Act 
are contained in the Code of Federal Regulations (CFR) in 34 CFR part 
5b.
    The Privacy Act applies to information about individuals that 
contain 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-based, 
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 system of records.

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at the following site: 
http://www.ed.gov/legislation/FedRegister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC area at (202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http:// 
www.access.gpo.gov/nara/index.html.


    Dated: May 24, 2001.
Greg Woods,
Chief Operating Officer, Student Financial Assistance.
    For the reasons discussed in the preamble, the Chief Operating 
Officer, Student Financial Assistance, U.S. Department of Education 
publishes notice of a new system of records to read as follows:
18-11-10

System Name:
    Student Authentication Network Audit File.

Security Classification:
    None.

System Location:
    The Student Authentication Network Audit File is located at NCS 
Pearson, 2510 North Dodge Street, Iowa City, Iowa 52245.

Categories of Individuals Covered by the System:
    This system contains records (i.e., an audit file) on individuals 
who have had, or attempted to have, their identity verified for the 
purpose of electronically completing and signing promissory notes and 
other documents in connection with applying for or obtaining aid, or 
carrying out other activities under the Student Financial Assistance 
Programs authorized by Title IV of the Higher Education Act of 1965, as 
amended.

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Categories of Records in the System:
    This system contains records including an individual's Social 
Security Number; date of birth; first and last names; user code (i.e., 
the Department, lenders, schools, guarantee agencies and holders of 
Federal student loans) identifying the entity seeking to verify the 
individual's identity; data provided by the user that may subsequently 
be used for auditing or other internal purposes of the user); an action 
code documenting the ``affirmed'' or ``denied'' verification response 
the system receives from the Department's Personal Identification 
Number (PIN) database; a unique identifier comprising a system-
generated sequence number; and, the date and time the individual's 
identity is authenticated against the Department's PIN database.

Authority for Maintenance of the System:
    The Higher Education Act of 1965, as amended, (20 U.S.C. 1092b).

Purpose(s):
    The information contained in the records maintained in this system 
is used for the purposes of verifying the identity of the individual, 
enforcing the conditions and terms of the loan, permitting the 
servicing and collecting of the loan, investigating possible fraud and 
verifying compliance with program regulations, initiating legal action 
against an individual involved in program fraud, abuse, or 
noncompliance, and enforcing Title IV requirements against schools, 
lenders, and guaranty agencies.

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 Disclosures. The Department may disclose information 
from this system to 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, contractors and hearing officials for the 
following purposes:
    (a) To verify the identity of the individual;
    (b) To enforce the conditions or terms of the loan;
    (c) To permit servicing, collecting, or accepting the loan;
    (d) To investigate possible fraud and verify compliance with 
program regulations;
    (e) To prepare for litigation or to litigate collection service and 
audit;
    (f) To initiate a limitation, suspension, and termination (LS&T) or 
debarment or suspension action;
    (g) To ensure Title IV requirements are met by schools, lenders, 
and guaranty agencies; and
    (h) To investigate complaints, update files, and correct errors.
    (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 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 Department 
may disclose the relevant records to the appropriate agency, whether 
foreign, Federal, State, Tribal, or local, charged with the 
responsibility of investigating or prosecuting that violation or 
charged with enforcing or implementing the statute, Executive order, 
rule, regulation, or order issued pursuant thereto.
    (4) Litigation and Alternative Dispute Resolution (ADR) 
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 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;
    (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 record 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 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

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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 
records 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.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System: Storage:
    The records are maintained on magnetic tape or other electronic 
media.

Retrievability:
    Records are retrievable by Social Security Number and all or part 
of an individual's last name.

Safeguards:
    Physical access to the data systems housed within the facility is 
controlled by a computerized badge reading system, and the entire 
complex is patrolled by security personnel during non-business hours. 
The computer systems offer a high degree of resistance to tampering and 
circumvention. Multiple levels of security are maintained within the 
computer system control program. This security system limits data 
access to 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 of records are given a 
unique user identification (ID) with personal identifiers. All 
interactions by individual users with the system are recorded.

Retention and Disposal:
    The Department will retain and dispose of these records in 
accordance with National Archives and Records Administration General 
Records Schedule 20, Item 1.c. This schedule provides disposal 
authorization for electronic files and hard-copy printouts created to 
monitor system usage, including, but not limited to log-in files, audit 
trail files, system usage files, and cost-back files used to assess 
charges for system use. Records will be deleted or destroyed when the 
Department determines they are no longer needed for administrative, 
legal, audit, or other program purposes.

System Manager(s) and Address:
    General Manager, Students Channel, Student Financial Assistance, 
Department of Education, 7th and D Streets, SW., Washington, DC, 20202.

Notification Procedure:
    If you wish to determine whether a record exists regarding you in 
the system of records, provide the system manager with your name, date 
of birth and Social Security Number. Requests must meet the 
requirements of the regulations at 34 CFR 5b.5.

Record Access Procedures:
    If you wish to gain access to a record in this system, 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 regulations at 34 CFR 5b.5.

Contesting Record Procedures:
    If you wish to contest a record in the system of records, contact 
the system manager with the information described in the notification 
procedure, identify the specific items you are contesting, and provide 
a written justification for each item. Requests to amend a record must 
meet the requirements of the regulations at 34 CFR 5b.7.

Record Source Categories:
    Information is obtained from individuals who have had or seek to 
have their identity authenticated, except that user codes and user-
provided data are obtained specifically from the entity (the 
Department, lenders, schools, guarantee agencies and holders of Federal 
student loans) that seeks to verify the individual's identity.

System Exempted from Certain Provisions of the Act:
    None.
[FR Doc. 01-13552 Filed 5-29-01; 8:45 am]
BILLING CODE 4000-01-U