[Federal Register Volume 84, Number 159 (Friday, August 16, 2019)]
[Notices]
[Pages 41979-41987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17615]
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DEPARTMENT OF EDUCATION
[Docket ID ED-2017-FSA-0083]
Privacy Act of 1974; System of Records
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of a modified system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended
(Privacy Act), the Department of Education (Department) modifies the
system of records entitled ``Common Origination and Disbursement (COD)
System'' (18-11-02).
The COD System is a system of records about applicants for, and
recipients of, a Federal grant or loan under any of the Federal student
financial assistance programs authorized under title IV of the Higher
Education Act of 1965, as amended (HEA). The Department uses the COD
system of records to document origination and disbursement of loans,
account for awarded grants, reconcile school cash drawdowns from the
U.S. Department of the Treasury to individual student disbursements,
and ensure that institutions of higher education participating in the
HEA programs receive the appropriate amount of funds during the
respective time periods.
DATES: Submit your comments on or before September 16, 2019.
This modified system of records will become applicable upon
publication in the Federal Register on August 16, 2019. New routine use
disclosures (1)(i), (1)(j), (1)(k), and 14, and modified routine uses
(1)(f), (4)(c), (5)(a), (10), (11), (12), and (13) outlined in the
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND PURPOSES OF SUCH USES will become applicable on September
16, 2019, unless the modified system of records notice needs to be
changed as a result of public comment. The Department will publish any
significant changes resulting from public comment.
ADDRESSES: Submit your comments through the Federal eRulemaking Portal
or via postal mail, commercial delivery, or hand delivery. We will not
accept comments submitted by fax or by email or those submitted after
the comment period. To ensure that we do not receive duplicate copies,
please submit your comments only once. In addition, please include the
Docket ID at the top of your comments.
Federal eRulemaking Portal: Go to www.regulations.gov to
submit your comments electronically. Information on using
Regulations.gov, including instructions for accessing agency documents,
submitting comments, and viewing the docket, is available on the site
under the ``help'' tab.
Postal Mail, Commercial Delivery, or Hand Delivery: If you
mail or deliver your comments about this modified system of records,
address them to: Director, COD System, Program Management Services,
Federal Student Aid (FSA), U.S. Department of Education, Union Center
Plaza (UCP), Room 112J2, 830 First Street NE, Washington, DC 20202-
5454.
Privacy Note: The Department's policy is to make all comments
received from members of the public available for public viewing in
their entirety on the Federal eRulemaking Portal at
www.regulations.gov. Therefore, commenters should be careful to
include in their comments only information that they wish to make
publicly available.
Assistance to Individuals with Disabilities in Reviewing the
Rulemaking Record: On request, we will supply an appropriate
accommodation or auxiliary aid, 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 accommodation or auxiliary aid, please
contact the person listed under FOR FURTHER INFORMATION CONTACT.
FOR FURTHER INFORMATION CONTACT: Margaret M. Glick, Director, COD
System, Program Management Services, FSA, U.S. Department of Education,
UCP, Room 64E1, 830 First Street NE, Washington, DC 20202-5454.
Telephone: (202) 377-4563.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), you may call the Federal Relay Service (FRS) at 1-800-
877-8339.
SUPPLEMENTARY INFORMATION:
Among other purposes described in this notice, the COD System
includes information needed for the Department to administer the
Federal grant and loan HEA programs. The COD System contains records
associated with Federal grant and loan origination activities under
HEA-authorized programs for which the Department provides funds
directly to participating institutions of higher education on a student
or recipient level. Such activities include establishing an
individual's eligibility to receive a Federal grant or loan under these
HEA-authorized programs. The system also contains records evidencing
the disbursement of program funds by participating institutions of
higher education to those individuals whose eligibility has been
previously established.
Records maintained in the COD System include information provided
by recipients of title IV, HEA program assistance, the legal parents of
dependent recipients, endorsers, and the spouses of married,
independent student borrowers, and references, as required. The records
contain individually identifying information, including, but not
limited to: Name, Social Security number (SSN), address, date of birth,
email address, and citizenship status. The COD System also assists the
Department in administering the title IV Campus Based Programs, which
include the Federal Perkins Loan, Federal Supplemental Educational
Opportunity Grant (FSEOG), and Federal Work-Study (FWS) Programs.
This notice of a modified system of records for the COD System:
Updates the security classification, system locations, and system
manager; expands the categories of individuals covered by the system
and the categories of records maintained in the system; expands the
system's purposes; and updates the current programmatic routine use
disclosures needed to carry out the Department's responsibilities under
title IV of the HEA. This notice also updates some of the wording of
the routine uses in this system of records notice to standardize it
with the wording of the same routine uses in many of the Department's
other systems of records notices, deletes a standard routine use
[[Page 41980]]
that is no longer needed, and adds a new standard routine use that is
needed to comply with Office of Management and Budget requirements on
data breaches involving personally identifiable information. This
notice also updates the policies and practices for the storage of
records, the policies and practices for retrieval of records, the
policies and procedures for retention and disposal of records, and the
record source categories. The Department is also modifying the sections
of the notice entitled ``RECORD ACCESS PROCEDURES'' and ``NOTIFICATION
PROCEDURES'' and is adding a new section entitled ``HISTORY.''
The Department is updating the section of the notice entitled
``SECURITY CLASSIFICATION'' by revising it from ``none'' to
``unclassified'' and the section of the notice entitled ``SYSTEM
LOCATION'' by adding additional locations of records, and removing the
locations no longer utilized. The Department is changing the section of
the notice entitled ``SYSTEM MANAGER(S)'' to reflect that the Director
of the COD System is the system manager.
The Department is updating the section of the notice entitled
``PURPOSE(S) OF THE SYSTEM'' to expand the system's purposes related to
students and borrowers. The Department is adding additional purposes to
identify individuals who: Completed a Special Direct Consolidation Loan
application and promissory note; completed counseling in the Direct
Loan or Teacher Education Assistance for College and Higher Education
(TEACH) Grant programs; filed an electronic request to repay a Direct
Loan under an income-based or income contingent (hereafter ``income-
driven'') repayment plan; or filed an electronic Federal Direct
Consolidation Loan application and promissory note. The Department also
is including an additional purpose to track the level of study, the
Classification of Instructional Program (CIP) code (field of study),
and the educational program length in which the borrower enrolled to
track the limit on eligibility for Direct Subsidized Loans to no more
than 150 percent of the published length of the educational program in
which the student is enrolled, and to enable Federal Loan Servicers to
determine the periods for which a borrower who enrolls after reaching
the 150 percent limit will be responsible for the accruing interest on
outstanding Direct Subsidized Loans, and also for tracking student
enrollments by educational program for purposes of determining
educational program outcomes, including using that information to
obtain average earnings of students by educational program from another
Federal agency.
The Department also is expanding the system's purposes related to
institutions of higher education participating in and administering
title IV, HEA programs to include assisting an institution of higher
education with student loan default prevention and with reconciling its
cash drawdowns from the U.S. Department of the Treasury with its
reported disbursements and to ensure that the institution receives the
appropriate amount of dollars during the respective time period. Also,
the Department is revising a purpose to clarify that an institution of
higher education can request online credit checks to determine a
borrower's eligibility for title IV, HEA Federal Direct PLUS Loans.
The Department also is expanding the system's purposes related to
the Department's oversight of title IV, HEA programs to include
performing data analytics and reporting to inform and optimize the
effectiveness of the Department's student financial assistance
programs.
The Department is expanding the section of the notice entitled
``CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM'' to cover
individuals who apply for a Federal grant or applied for a loan under
the Federal Perkins Loan Program, the Federal Family Education Loan
(FFEL) Program, the Federal Insured Student Loan (FISL) Program, the
Auxiliary Loans to Assist Students (ALAS) Program, the Health
Professions Student Loans (HPSL) Program, and the Health Education
Assistance Loan (HEAL) Program. This section also has been expanded to
contain student enrollment data on title IV recipients and cohort
default rate (CDR) by institution of higher education.
The Department is modifying the section entitled ``CATEGORIES OF
RECORDS IN THE SYSTEM'' to expand the data elements maintained in the
system. For individuals who apply for or receive a Federal grant or
loan under the programs authorized by title IV of the HEA the
Department is now maintaining additional demographic information,
including Federal income tax information (tax return status, adjusted
gross income, Internal Revenue Service exemptions, and tax year),
family size, marital status, and spouse identifiers. For recipients of
Direct Loans, FFEL Program loans, Perkins Loans, and FISL Program
loans, the Department is expanding borrower loan information to include
the period from the origination of the loan through final payment, and
milestones, including, but not limited to: Cancellation, consolidation,
discharge, or other final disposition including details such as loan
amount, disbursements, balances, loan status, repayment plan and
related information, collections, claims, deferments, forbearances, and
refunds. On Federal grant recipients, the Department is expanding
information to include grant amounts, grant awards, verification
status, lifetime eligibility used (LEU), Iraq and Afghanistan Service
Grant (IASG) eligible veteran's dependent indicator, Children of Fallen
Heroes Scholarship eligibility indicator, and Pell over-award
indicator.
The Department is further expanding the section entitled
``CATEGORIES OF RECORDS IN THE SYSTEM'' to include Direct Loan award
information; FFEL Loan Program records including demographic and
contact information; Pell Grant overpayment collection information;
promissory notes, Direct PLUS Loan request, endorser addendum, and
confirmation of counseling completion by Direct Loan borrowers and
TEACH Grant program recipients; PLUS Loan credit report information;
applicant identifier information for an electronic request to repay a
Direct Loan under an income-driven repayment plan and endorser/spouse
information; Electronic Direct Consolidation Loan applicant identifier
information; information concerning the date of any default on a loan;
and demographic and contact information for borrower accounts that are
assigned to a Federal Loan Servicer(s). This section has also been
expanded to include data about students that is provided by
institutions of higher education that apply and are accepted by the
Department for participation in an experiment under the Experimental
Sites Initiatives. Also, this section has been expanded to include data
elements that are used to perform data analysis regarding improper
payments. Additionally, this section has been expanded to contain
records on the level of study, CIP code (field of study), and published
length of an educational program in which a student receiving title IV,
HEA Federal student aid is enrolled.
An appendix has also been added to the notice detailing the data in
this system of records as a result of exchanges of data within FSA.
The section entitled ``RECORD SOURCE CATEGORIES'' has been updated
to include information that is provided by spouses of applicants who
request to repay a Direct Loan under an income-driven repayment plan
and that is obtained from Federal Direct
[[Page 41981]]
Consolidation Loan application forms and promissory notes. Also, the
section has been updated to specify that completion information for
Direct Loan and TEACH Grant program counseling is received through
StudentLoans.gov (the student-facing portion of the website) or from
institutions of higher education, or both. The section also has been
updated to indicate that the system receives information on PLUS LOAN
applicants from credit reporting agencies. The section has been further
updated to include other persons or entities from which data is
obtained under the routine uses set forth in the system of records
notice. Additionally, this section has been updated to include various
Privacy Act systems of records notices maintained by the Department
that share information with the COD System.
The Department is making a number of changes which expand the
current routine use disclosures in the system.
First, the Department is revising programmatic routine use (1)(f)
to clarify that an institution of higher education can request online
credit checks to determine a borrower's eligibility for title IV, HEA
Federal Direct PLUS Loans.
Second, the Department is adding programmatic routine use (1)(i) to
allow the Department to disclose records to institutions of higher
education as to whether borrowers or students have completed the
required counseling in the Direct Loan or TEACH Grant programs to
assist institutions of higher education with student loan default
prevention.
Third, the Department is adding programmatic routine use (1)(j) to
permit the Department to disclose records to guaranty agencies,
educational institutions, financial institutions and servicers, and to
Federal and State agencies in order to assist the Department in
complying with requirements that limit eligibility for Direct
Subsidized Loans.
Fourth, the Department is adding programmatic routine use (1)(k) to
permit the Department to disclose records to credit reporting agencies
to assist the Department with the determination of eligibility for a
PLUS Loan.
The Department is deleting prior routine use (3), which was
entitled ``Disclosure for Use by Other Law Enforcement Agencies,''
because Program Management Services within Federal Student Aid (FSA)
that is responsible for managing this system of records is not a law
enforcement agency. Further, another routine use in this system of
records and subsection (b)(7) of the Privacy Act will continue to
permit FSA to disclose records for law enforcement purposes provided
their conditions are met.
The Department is modifying routine use (4)(c) entitled
``Litigation and Alternative Dispute Resolution (ADR) Disclosure'' to
insert the word ``person'' in place of the word ``individual'' to avoid
confusion because ``individual'' is a defined term in the Privacy Act.
The Department is also modifying routine use (5)(a) entitled
``Employment, Benefit, and Contracting Disclosure'' to add language to
describe the records as ``civil, criminal, or other relevant
enforcement or other pertinent records'' that are maintained by a
Federal, State, or local agency, or by another public authority or
professional organization, to which the Department may disclose records
under this routine use if necessary to obtain information in such an
agency's or organization's records that would be relevant to a
Departmental decision involving personnel actions, the issuance of
benefits, or the letting of a contract.
The Department is modifying routine use (10) entitled ``Contract
Disclosure'' and routine use (11) entitled ``Research Disclosure'' to
remove the language therein that had referenced ``Privacy Act
safeguards.'' The Department revised the language in these routine uses
to clarify that contractors and researchers to whom disclosures are
made under these routine uses will be required to agree to establish
and maintain safeguards to protect the security and confidentiality of
the disclosed records. With respect to routine use (10), the Department
also removed language that had indicated that the Department would
require these safeguards ``before entering into such a contract'' to
instead indicate that these safeguards will be required ``as part of
such a contract.'' With respect to routine use (11), the Department
also revised this routine use to indicate that an appropriate official
of the Department must determine that the individual or organization to
which the disclosure would be made is qualified to carry out specific
research related to the functions or purposes of the system of records
and that the disclosure and research must be consistent with the uses
and restrictions set forth in Sections 483(a)(3)(E), 485B(d)(2), and
485B(d)(5)(B) of the HEA, and the Family Educational Rights and Privacy
Act, 20 U.S.C. 1232g and 34 CFR part 99.
The Department is modifying routine use (12) to permit the
Department to disclose records to the Congressional Budget Office, in
addition to the Office of Management and Budget (OMB), as necessary to
fulfill the requirements of the Federal Credit Reform Act of 1990, as
amended, in accordance with 2 U.S.C. 661b.
Pursuant to the requirements in OMB Memorandum 17-12 entitled
``Preparing for and Responding to a Breach of Personally Identifiable
Information,'' the Department is modifying the routine use (13)
entitled ``Disclosure in the Course of Responding to a Breach of
Data.''
Finally, the Department is adding a new routine use (14) to permit
the Department to disclose records from this system, in compliance with
the requirements set forth in OMB Memorandum 17-12, to another Federal
agency or Federal entity, when the Department determines that
information from this system of records is reasonably necessary to
assist the recipient agency or entity in (a) responding to a suspected
or confirmed breach or (b) preventing, minimizing, or remedying the
risk of harm to individuals, the recipient agency or entity (including
its information systems, programs, and operations), the Federal
Government, or national security, resulting from a suspected or
confirmed breach.
The Department is updating the section entitled ``POLICIES AND
PRACTICES FOR STORAGE OF RECORDS'' to include the storage of electronic
student demographic, and title IV aid data information for the entire
Federal Student Aid lifecycle, from application through loan payoff.
The section is also being updated to include the storage of electronic
master promissory notes and the hard disk storage of electronic Special
Direct Consolidation Loan applications and promissory notes, electronic
requests to repay a Direct Loan under an income-driven repayment plan,
and Federal Direct Consolidation Loan applications and promissory
notes.
The Department is updating the section entitled ``POLICIES AND
PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS'' to explain that the
applicable Department records schedule is being amended, pending
approval by the National Archives and Records Administration (NARA).
Finally, the Department is modifying the sections entitled ``RECORD
ACCESS PROCEDURES'' and ``NOTIFICATION PROCEDURES'' to specify the
necessary particulars that an individual must provide when making a
request for access to or notification of a record. The Department is
also adding a new section entitled ``HISTORY'' in compliance with the
requirements in OMB Circular No. A-108.
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Accessible Format: Individuals with disabilities can obtain this
document in an accessible format (e.g., braille, large print,
audiotape, or compact disc) on request to the person listed under FOR
FURTHER INFORMATION CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. At this site you can view this
document, as well as all other documents of this Department published
in the Federal Register, in text or Portable Document Format (PDF). To
use PDF you must have Adobe Acrobat Reader, which is available free at
the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
Dated: August 12, 2019.
Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
For the reasons discussed in the preamble, the Chief Operating
Officer, Federal Student Aid of the U.S. Department of Education
(Department) publishes a notice of a modified system of records to read
as follows:
SYSTEM NAME AND NUMBER:
Common Origination and Disbursement (COD) System (18-11-02).
SECURITY CLASSIFICATION:
Unclassified.
SYSTEM LOCATION:
Program Management Services, Federal Student Aid (FSA), U.S.
Department of Education (Department), Union Center Plaza (UCP), Room
64E1, 830 First Street NE, Washington, DC 20202-5454.
Amazon Web Services (AWS), 1200 12th Ave., Suite 1200, Seattle, WA
98114. (This is the Computer Center for the COD application, where all
electronic COD information is processed and stored.) This information
includes data about individuals who completed counseling required by
the William D. Ford Federal Direct Loan (Direct Loan) and the Teacher
Education Assistance for College and Higher Education (TEACH) Grant
programs, and who apply for or receive a Federal grant or loan under
one of the programs authorized by title IV of the Higher Education Act
of 1965, as amended (HEA), including, but not limited to: The Direct
Loan Program, the Federal Family Education Loan (FFEL) Program, the
Campus-Based Programs (Federal Perkins Loans, Federal Work Study, and
Federal Supplemental Education Opportunity Grants (FSEOG)), the Federal
Pell Grant Program, the Academic Competitiveness Grant (ACG) Program,
the National Science and Mathematics Access to Retain Talent (National
SMART) Grant Program, the TEACH Grant Program, the Iraq and Afghanistan
Service Grant (IASG) Program, the Federal Insured Student Loan (FISL)
Program, the Auxiliary Loans to Assist Students (ALAS) Program, the
Health Profession Student Loans (HPSL) Program, and the Health
Education Assistance Loans (HEAL) Program. Also included are: Direct
Loan electronic promissory notes, TEACH Agreement to Serve (ATS)
documents, PLUS Loan endorser addendums, Special Direct Consolidation
Loan applications and promissory notes, electronic requests to repay a
Direct Loan under an income-driven repayment plan, Federal Direct
Consolidation Loan application and promissory notes, student enrollment
information which includes dates and statuses (i.e., full-time or part-
time).
Accenture, 22451 Shaw Road, Sterling, VA 20166-4319. (The COD
Sterling Cloud-based Operations is located here.)
Accenture DC, 810 First Street NE, Washington, DC 20202-4227. (This
is the COD Operations Center.)
Atlanta Federal Records Center, National Archives and Records
Administration (NARA), 4712 Southpark Blvd., Ellenwood, GA 30294. (This
is where master promissory notes (MPN), Endorser Addenda, and Power of
Attorney documents are stored.)
The following five listings are the locations of the COD Customer
Service Centers:
ASM Research 2429 Military Road, Suite 200, Niagara Falls, NY
14304-1551. (This center images and stores all of the Direct Loan paper
Master Promissory Notes (MPNs) and Endorser Addenda);
Senture, LLC, 4255 W Highway 90 Monticello, KY 42633-3398;
Senture, LLC 460 Industrial Blvd., London, KY 40741-7285;
Cooney Solutions Group, 8415 Datapoint Drive, San Antonio, Texas
78229-3298; and
Veteran Call Center, 53 Knightsbridge Rd., Suite 201, Piscataway,
NJ 08854-3925.
SYSTEM MANAGER(S):
Director, COD System, Program Management Services, Federal Student
Aid (FSA), U.S. Department of Education (Department), Union Center
Plaza (UCP), Room 64E1, 830 First Street NE, Washington, DC 20202-5454.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
This system of records is authorized under title IV of the HEA, 20
U.S.C. 1070 et seq.
PURPOSE(S) OF THE SYSTEM:
The information contained in this system is maintained for the
following purposes related to students and borrowers:
(1) To determine recipient eligibility and benefits under the title
IV, HEA programs;
(2) To store electronic data and documentation, including
promissory notes and other agreements, that evidence the existence of a
legal obligation to repay funds disbursed under the title IV, HEA
programs;
(3) To identify whether an individual may have received a title IV,
HEA Federal grant or loan at more than one educational institution for
the same enrollment period in violation of the title IV program
regulations;
(4) To identify whether an individual may have exceeded the annual
award limits under title IV, HEA Federal grant or loan programs in
violation of title IV program regulations;
(5) To identify an individual who completed a Special Direct
Consolidation Loan application and promissory note;
(6) To identify an individual who completed counseling in the
Direct Loan or TEACH Grant programs;
(7) To identify an individual who completed an electronic request
to repay a Direct Loan under an income-based or income contingent
(hereafter ``income-driven'') repayment plan;
(8) To identify an individual who completed an electronic Federal
Direct Consolidation Loan application and promissory note; and
(9) To track the level of study, Classification of Instructional
Program (CIP) code (field of study), and educational program length to
limit eligibility for Direct Subsidized Loans to no more than 150
percent of the published length of the educational program in which the
student is enrolled, to enable Federal Loan Servicers to determine the
periods for which a borrower who enrolls after reaching the 150 percent
limit will be responsible for the accruing interest on outstanding
Direct Subsidized Loans, and also for tracking student
[[Page 41983]]
enrollments by educational program for purposes of determining
educational program outcomes, including using that information to
obtain average earnings of students by educational program from another
Federal agency.
The information in this system is also maintained for the following
purposes relating to institutions of higher education participating in
and administering title IV, HEA programs:
(1) To enable an institution of higher education to reconcile, on
an aggregate and recipient-level basis, the amount of title IV, HEA
Federal grant and Direct Loan funds that an institution received for
disbursements it made to, or on behalf of, eligible students (including
reconciling verification codes, reconciling the funds received with
disbursements made by type of funds received, and making necessary
adjustments);
(2) To enable an institution of higher education to request online
credit checks to determine the eligibility of a borrower for title IV,
HEA Federal Direct PLUS Loans;
(3) To assist an institution of higher education, a software
vendor, or a third-party servicer with questions about a title IV, HEA
Federal grant or loan;
(4) To assist an institution of higher education with student loan
default prevention; and
(5) To reconcile an institution of higher education's cash
drawdowns from the U.S. Department of the Treasury with its reported
disbursements and to ensure that the institution of higher education
receives the appropriate amount of funds during the respective time
period.
The information in this system is also maintained for the following
purposes relating to the Department's oversight of title IV, HEA
programs:
(1) To support the investigation of possible fraud and abuse and to
detect and prevent fraud and abuse in the title IV, HEA Federal grant
and loan programs;
(2) To confirm that an institution of higher education, or a
program offered by an institution of higher education, is eligible to
receive title IV, HEA program funds;
(3) To set and adjust program funding authorization levels for each
institution;
(4) To enforce institutional compliance with Department reporting
deadlines;
(5) To apply appropriate title IV, HEA funding controls; and
(6) To perform data analytics and reporting to inform and optimize
the effectiveness of the Department's student financial assistance
programs.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
This system contains records of individuals who apply for a Federal
grant or loan under one of the programs authorized under title IV of
the HEA, including, but not limited to the: (1) Federal Pell Grant
Program; (2) Federal Perkins Loans Program; (3) ACG Program; (4)
National SMART Grant Program; (5) TEACH Grant Program; (6) Iraq and
Afghanistan Service Grant Program; (7) Direct Loan Program, which
includes Federal Direct Stafford/Ford Loans, Federal Direct
Unsubsidized Stafford/Ford Loans and Federal Direct PLUS Loans and
Federal Direct Consolidation Loans; (8) FFEL Program; (9) FISL Program;
(10) ALAS Program; (11) HPSL Program; and (12) the HEAL Program.
The COD System also contains records of individuals who are title
IV recipients and are currently or were previously enrolled at an
institution of higher education, and cohort default rates (CDR) by
institution of higher education.
CATEGORIES OF RECORDS IN THE SYSTEM:
Records in the COD System include, but are not limited to, the
following data about individuals who apply for or receive a Federal
grant or loan under one of the programs authorized under title IV of
the HEA:
(1) Identifier information, including name, Social Security number
(SSN), and date of birth (DOB);
(2) Demographic information, including address, email address,
driver's license number, telephone number, citizenship status,
dependency status, estimated family contribution, cost of attendance,
postsecondary school identifier, Federal income tax information (tax
return status, adjusted gross income, Internal Revenue Service
exemptions, and tax year), family size, marital status, spousal
identifiers, and enrollment information;
(3) Borrowers' loan(s) information including information about
recipients of Direct Loan, FFEL program loans, Perkins Loans, and FISL
program loans. This includes the period from the origination of the
loan through final payment, and milestones, including, but not limited
to: Cancellation, consolidation, discharge, or other final disposition
including details such as loan amount, disbursements, balances, loan
status, repayment plan and related information, collections, claims,
deferments, forbearances, and refunds;
(4) Information about students receiving Federal grants, including
recipients of Pell Grants, ACG, National SMART Grants, TEACH Grants,
Iraq and Afghanistan Service Grants, and including grant amounts, grant
awards, verification status, lifetime eligibility used (LEU), IASG
eligible veteran's dependent indicator, Children of Fallen Heroes
Scholarship eligibility indicator, and the Pell Grant over-award
indicator;
(5) Direct Loan awards. This includes loan amounts and dates of
disbursements;
(6) FFEL Loan program records including demographic and contact
information from the guaranty agency that guarantees the borrower's
FFEL loan(s) and the lender(s), holder(s), and servicer(s) of the
borrower's loan(s);
(7) Pell Grant overpayment collection information;
(8) Direct Loan promissory notes including promissory note
identification numbers, loan type, current servicer, principal balance,
and the accrued interest of Direct Loans or Department-held FFEL Loans;
(9) TEACH Agreements to Serve;
(10) Promissory notes, Direct Loan Entrance Counseling forms,
Federal Student Loan Exit Counseling forms, PLUS Loan Counseling forms,
Direct PLUS Loan Requests, endorser addendums, and counseling in the
Direct Loan and TEACH Grant programs, such as the date that applicant
completed counseling;
(11) PLUS Loan credit report information;
(12) Applicant identifier information for an electronic request to
repay a Direct Loan under an income-driven repayment plan and endorser/
spouse information, such as the SSN, date that applicant completed the
income-driven repayment plan application, and current loan balances;
(13) Electronic Direct Consolidation Loan borrower identifier
information, such as the borrower's SSN, the date that borrower
completed the Federal Direct Consolidation Loan application and
promissory note, and current loan balances;
(14) Information concerning the date of any default on a loan;
(15) Demographic and contact information for borrower accounts that
are assigned to the Federal Loan Servicer(s) for collection of the
borrower's title IV, HEA loans.
The system also contains the following data about students provided
by institutions of higher education that participate in an experiment
under the Experimental Sites Initiative: award year, experiment number,
Office of Postsecondary Education identification number (OPEID),
student SSN, student last name, and any data collection instrument
elements authorized under
[[Page 41984]]
the Information Collection Request associated with each experiment.
In addition to identifying and demographic information listed above
the following data elements that are used to perform data analysis
regarding improper payments: Internal Identifier (ID), Email Modified
Date, Flag for Email Verified, Email Verified Date, Challenge Question/
Answers (CQA), Password, Notes, Security universally unique identifier
(UUID), Social Security Administration Match, Quarantined Status,
Language Preference, Account Disabled by FSA, Account Disabled by User,
PAS Suspect Activity Flag, Date CQA becomes unlocked, Keys for
Verification, Short Message Service (SMS) Opted In Status, Flag for SMS
Verified, SMS Verified Date, Date User Accepted Disclaimer, Event ID,
Session ID, Event Type, User UUID, App ID, Referrer App ID, Uniform
Resource Locator (URL), Referrer URL, Authentication Flag, Remote
internet Protocol (IP) address, Client IP address, User Agent String,
Timestamp, WebSEAL Version, UUID, Authorization Token, Challenge
Question 1, Response 1, Challenge Question 2, Response 2, Challenge
Question 3, Response 3, Challenge Question 4, Response 4, Challenge
Question 5, Response 5, and Created Time.
The system also contains records on the level of study, CIP code
(field of study), and published length of an educational program in
which a student receiving title IV, HEA Federal student aid is enrolled
to assist the Department in enforcing the limit on the borrower's
eligibility for Direct Subsidized Loans to no more than 150 percent of
the published length of the educational program in which the student is
enrolled, and to determine the periods for which a borrower who enrolls
after reaching the 150 percent limit will be responsible for the
accruing interest on outstanding Direct Subsidized Loans.
The Appendix contains a detailed description of the data added to
this system of records as a result of the exchanges of data within FSA.
RECORD SOURCE CATEGORIES:
This system includes records on individuals who have received title
IV, HEA program assistance. These records include information provided
by recipients of title IV, HEA program assistance, the parents of
dependent recipients, spouses of applicants who request to repay a
Direct Loan under an income-driven repayment plan, and from Federal
Direct Consolidation Loan application forms and promissory notes. This
system also includes Federal grant and Direct Loan origination and
disbursement records provided to the Department by institutions of
higher education or their agents. The system also receives completion
information for Direct Loan and TEACH Grant program counseling through
StudentLoans.gov (the student-facing portion of the website) or from
institutions of higher education, or both.
The system also receives information on PLUS Loan applicants from
credit reporting agencies.
The Central Processing System (CPS) (covered by the Department's
Privacy Act of 1974, as amended (Privacy Act) system of records notice
entitled ``Federal Student Aid Application File'' (18-11-01))
electronically sends the COD System the Demographic Data Exchange (DDE)
file to validate all CPS-processed Free Application for Federal Student
Aid (FAFSA) records with the Federal grant and Direct Loan disbursement
data processed through the COD System.
The National Student Loan Data System (NSLDS) (covered by the
Department's Privacy Act system of records notice entitled ``National
Student Loan Data System'' (18-11-06)) electronically sends the COD
System student aid data for the Special Direct Consolidation Loan
borrowers, Financial Awareness Counseling, the income-driven repayment
plan application processed through the COD System, the Federal Direct
Loan Consolidation Loan application and promissory notes, and the data
to perform analytics and reporting to inform and optimize the
effectiveness of the Department's student financial assistance
programs.
The Financial Management System (FMS) (covered by the Department's
Privacy Act system of records notice entitled ``Financial Management
System (FMS)'' (18-11-17)) sends the COD System funding information at
the institutional level, refunds of cash, and reallocation information.
The Postsecondary Education Participants System (PEPS) (covered by
the Department's Privacy Act system of records notice entitled
``Postsecondary Education Participants System (PEPS)'' (18-11-09))
sends the COD System school demographic information.
The Common Services for Borrowers system (CSB) (covered by the
Privacy Act system of records notice entitled ``Common Services for
Borrowers (CSB)'' (18-11-16)) sends the COD System discharge
information, payments to servicer data, and payments on grant
overpayments that are being serviced by FSA's Default Division.
The system may also obtain information from other persons or
entities from which data is obtained under routine uses set forth
below.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USES AND PURPOSES OF SUCH USES:
The 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. The
Department may make these disclosures on a case-by-case basis or, if
the Department has complied with the computer matching requirements of
the Privacy Act, under a computer matching agreement.
(1) Program Disclosures. The Department may disclose records from
the system of records for the following program purposes:
(a) To verify the identity of the recipient involved or the
accuracy of the record, or to assist with the determination of program
eligibility and benefits, the Department may disclose records to
institutions of higher education, financial institutions, third-party
servicers, and Federal, State, or local agencies;
(b) To store electronic data that supports the existence of a legal
obligation to repay funds disbursed under title IV, HEA programs,
including documentation such as promissory notes and other agreements,
the Department may disclose records to institutions of higher
education, third-party servicers, and Federal agencies;
(c) To identify whether an individual may have received a title IV,
HEA Federal grant or loan at more than one institution of higher
education for the same enrollment period in violation of title IV, HEA
regulations, the Department may disclose records to institutions of
higher education, third-party servicers, and Federal, State, or local
agencies;
(d) To identify whether an individual may have exceeded the annual
award limits under the title IV, HEA Federal grant or Direct Loan
programs in violation of title IV, HEA regulations, the Department may
disclose records to institutions of higher education, third-party
servicers, and Federal agencies;
(e) To enable institutions of higher education to reconcile, on an
aggregate and recipient-level basis, the amount of title IV, HEA
Federal grant and Direct Loan funds that an institution received with
the disbursements it made to, or on behalf of, eligible students
(including reconciling verification codes,
[[Page 41985]]
reconciling the funds received with disbursements made by type of funds
received, and making necessary corrections and adjustments), the
Department may disclose records to institutions of higher education,
third-party servicers, and Federal, State, or local agencies;
(f) To enable an institution of higher education to request online
credit checks to determine the eligibility of applicants or borrowers
for a title IV, HEA Federal Direct PLUS Loan, disclosures may be made
to institutions of higher education, third-party servicers, credit
reporting agencies, and Federal agencies;
(g) To assist individuals, institutions of higher education, third-
party servicers, or software vendors with questions about a title IV,
HEA Federal grant or loan, disclosures may be made to institutions of
higher education, software vendors, third-party servicers, and Federal,
State, or local agencies;
(h) To support the investigation of possible fraud and abuse and to
detect and prevent fraud and abuse in title IV, HEA Federal grant and
loan programs, disclosures may be made to institutions of higher
education, third-party servicers, and Federal, State, or local
agencies;
(i) To assist institutions of higher education with student loan
default prevention, disclosures may be made to institutions of higher
education as to whether a borrower or student has completed required
counseling in the Direct Loan or TEACH Grant programs;
(j) To assist the Department in complying with requirements that
limit eligibility for Direct Subsidized Loans to no more than 150
percent of the published length of the educational program in which the
student is enrolled, and to determine when a borrower who enrolls after
reaching the 150 percent limit will be responsible for the interest
accruing on outstanding Direct Subsidized Loans thereafter, the
Department may disclose records to guaranty agencies, educational
institutions, financial institutions and servicers, and to Federal and
State agencies; and
(k) To assist the Department in determining eligibility for a PLUS
Loan, disclosures may be made to credit reporting agencies.
(2) Congressional Member Disclosure. The Department may disclose
the records of an individual to a member of Congress or the member's
staff when necessary to respond 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.
(3) Enforcement Disclosure. If 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 investigating
or prosecuting that violation or charged with enforcing or implementing
the statute, regulation, or order issued pursuant thereto.
(4) Litigation and Alternative Dispute Resolution (ADR) Disclosure.
(a) Introduction. In the event that one of the following parties
listed in sub-paragraphs (i) through (v) is involved in judicial or
administrative litigation or ADR, or has an interest in judicial or
administrative litigation or ADR, the Department may disclose certain
records from this system of 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 or any of its components;
(ii) Any Department employee in his or her official capacity;
(iii) Any Department employee in his or her individual capacity if
the Department of Justice (DOJ) has been requested to or has agreed to
provide or arrange for representation of the employee;
(iv) Any Department employee in his or her individual capacity when
the Department has agreed to represent the employee;
(v) The United States when 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
judicial or administrative litigation or ADR, the Department may
disclose those records as a routine use to the DOJ.
(c) Adjudicative Disclosure. If the Department determines that it
is relevant and necessary to litigation or ADR to disclose certain
records from this system of records to an adjudicative body before
which the Department is authorized to appear or to a person or an
entity designated by the Department or otherwise empowered to resolve
or mediate disputes, the Department may disclose those records as a
routine use to the adjudicative body, person, or entity.
(d) Disclosure to Parties, Counsel, Representatives, and Witnesses.
If the Department determines that disclosure of certain records to a
party, counsel, representative, or witness is relevant and necessary to
the judicial or administrative litigation or ADR, 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
information from this system of records to a Federal, State, or local
agency, or to another public authority or professional organization,
maintaining civil, criminal, or other relevant enforcement or other
pertinent records, 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 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 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. If a
record is relevant and necessary to a grievance, complaint, or
disciplinary proceeding involving a present or former employee of the
Department, the Department may disclose the record in the course of
investigation, fact-finding, or adjudication to any party to the
grievance, complaint, or action; to the party's counsel or
representative; to a witness; or to a designated fact-finder, mediator,
or other person designated to resolve issues or decide the matter. The
disclosure may only be made during the course of investigation, fact-
finding, or adjudication.
(7) Labor Organization Disclosure. The Department may disclose a
record to an arbitrator to resolve disputes under a negotiated
grievance procedure or to officials of a labor organization recognized
under 5 U.S.C. chapter 71 when relevant and necessary to their duties
of exclusive representation.
(8) Freedom of Information Act (FOIA) and Privacy Act Advice
Disclosure. The Department may
[[Page 41986]]
disclose records to the DOJ or the Office of Management and Budget
(OMB) if the Department concludes that disclosure is desirable or
necessary in determining whether particular records are required to be
disclosed under the FOIA or the Privacy Act.
(9) Disclosure to the 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 to perform any function that requires disclosure of records in
this system to employees of the contractor, the Department may disclose
the records to those employees. As part of such a contract, the
Department shall require the contractor to agree to establish and
maintain safeguards to protect the security and confidentiality of the
disclosed records.
(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 the functions or
purposes of this system of records, provided that such disclosure and
research is consistent with the uses and restrictions set forth in
Sections 483(a)(3)(E), 485B(d)(2), and 485B(d)(5)(B) of the HEA, and
the Family Educational Rights and Privacy Act, 20 U.S.C. 1232g and 34
CFR part 99. The Department 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 agree to establish and
maintain safeguards to protect the security and confidentiality of the
disclosed records.
(12) Disclosure to OMB and the Congressional Budget Office (CBO)
for Federal Credit Reform Act (CRA) Support. The Department may
disclose records to OMB and CBO as necessary to fulfill CRA
requirements in accordance with 2 U.S.C. 661b.
(13) Disclosure in the Course of Responding to a Breach of Data.
The Department may disclose records from this system of records to
appropriate agencies, entities, and persons when (a) the Department
suspects or has confirmed that there has been a breach of the system of
records; (b) the Department has determined that as a result of the
suspected or confirmed breach, there is a risk of harm to individuals,
the Department (including its information systems, programs, and
operations), the Federal government, or national security; and (c) the
disclosure made to such agencies, entities, and persons is reasonably
necessary to assist in connection with the Department's efforts to
respond to the suspected or confirmed breach or to prevent, minimize,
or remedy such harm.
(14) Disclosure in Assisting another Agency in Responding to a
Breach of Data. The Department may disclose records from this system to
another Federal agency or Federal entity, when the Department
determines that information from this system of records is reasonably
necessary to assist the recipient agency or entity in (a) responding to
a suspected or confirmed breach or (b) preventing, minimizing, or
remedying the risk of harm to individuals, the recipient agency or
entity (including its information systems, programs, and operations),
the Federal Government, or national security, resulting from a
suspected or confirmed breach.
DISCLOSURE TO CONSUMER REPORTING AGENCIES:
Disclosures pursuant to 5 U.S.C. 552a(b)(12): The Department may
disclose to a consumer reporting agency the following information
regarding a valid, overdue claim of the Department: (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 15 U.S.C.
1681a(f) and 31 U.S.C. 3701(a)(3).
POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
The Department electronically stores, for the entire Federal
Student Aid lifecycle from application through loan payoff, student
demographic, and title IV, HEA aid data information such as, but not
limited to, FFEL program, FISL program, and Perkins aid records, on
hard disk at AWS Data Center in Seattle, Washington. The Department
stores electronic master promissory notes, electronic Special Direct
Consolidation Loan opportunity applications and promissory notes,
electronic requests to repay a Direct Loan under an income-driven
repayment plan, and Federal Direct Consolidation Loan applications and
promissory notes on hard disk at the AWS Data Center in Seattle,
Washington. Paper Direct Loan promissory notes and endorser addendums
are stored in locked vaults in ASM Research in Niagara Falls, New York
and at the NARA-operated Atlanta Federal Records Center near Atlanta,
Georgia. Data obtained from the paper promissory notes are stored on
hard disks at the AWS Data Center in Seattle, Washington. This data is
referred to as metadata and is used by the system to link promissory
notes to borrower data. The Department also creates and stores
electronic images of the paper promissory notes at the ASM Research
facility in Niagara Falls, New York. For information on the storage of
other documents see paragraph entitled ``SYSTEM LOCATIONS''.
POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
Records in the COD System are retrieved by the individual's SSN or
name, or by the institution's OPEID.
POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
All records are retained and disposed of in accordance with
Department Records Schedule 072: FSA Application, Origination, and
Disbursement Records (DAA-0441-2013-0002) (ED 072). ED 072 is being
amended, pending approval by NARA. Records will not be destroyed until
NARA-approved amendments to ED 072 are in effect, as applicable.
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
Physical access to the sites of the Department's contractors, where
this system of records is maintained, is controlled and monitored by
security personnel who check each individual entering the buildings for
his or her employee or visitor badge.
In accordance with the Department's Administrative Communications
System Directive OM: 5-101 entitled ``Contractor Employee Personnel
Security Screenings,'' all contract and Department personnel who have
facility access and system access must undergo a security clearance
investigation. Individuals requiring access to Privacy Act data are
required to hold, at a minimum, a moderate-risk security clearance
level. These individuals are required to undergo periodic screening at
five-year intervals.
In addition to undergoing security clearances, contract and
Department employees are required to complete security awareness
training on an annual basis. Annual security awareness
[[Page 41987]]
training is required to ensure that contract and Department users are
appropriately trained in safeguarding Privacy Act data.
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 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 unique user identification. The Department's FSA Information
Security and Privacy Policy require the enforcement of a complex
password policy. In addition to the enforcement of the complex password
policy, users are required to change their password at least every 90
days in accordance with the Department's information technology
standards.
RECORD ACCESS PROCEDURES:
If you wish to gain access to a record in this system, contact the
system manager at the address listed above. You must provide necessary
particulars of your name, DOB, SSN, and any other identifying
information requested by the Department while processing the request to
distinguish between individuals with the same name. Requests by an
individual for access to a record must meet the requirements in 34 CFR
5b.5.
CONTESTING RECORD PROCEDURES:
If you wish to contest the content of your personal record within
the system of records, contact the system manager at the address listed
above and provide your name, DOB, and SSN. Identify the specific items
to be changed, and provide a written justification for the change.
Requests to amend a record must meet the requirements in 34 CFR 5b.7.
NOTIFICATION PROCEDURES:
If you wish to determine whether a record exists regarding you in
the system of records, contact the system manager at the address listed
above. You must provide necessary particulars such as your name, DOB,
SSN, and any other identifying information requested by the Department
while processing the request to distinguish between individuals with
the same name. Requests must meet the requirements in 34 CFR 5b.5.
EXEMPTIONS PROMULGATED FOR THE SYSTEM:
None.
HISTORY:
The most recent notice modifying the COD system of records was
published in the Federal Register on September 27, 2010 (75 FR 59242-
59246). The Department renamed the system of records entitled
``Recipient Financial Management System'' (RFMS) as the ``Common
Origination and Disbursement (COD) System'' on September 27, 2010. The
Department previously published the RFMS system of records notice on
June 4, 1999 (64 FR 30106, 30161-30162).
Appendix to 18-11-02
The following is a detailed description of the data added to the
COD system of records as a result of the exchanges of data within
FSA:
The COD System receives applicant data from the Department's CPS
system each time an application is processed or corrected. This
process assesses student aid eligibility, updates financial aid
history, and ensures compliance with title IV, HEA regulations. Some
of these data appear on the applicant's Student Aid Report and the
Institutional Student Information Record. Federal Perkins Loan data
and FSEOG overpayment data are sent from postsecondary institutions
or their third-party servicers. The Department's COD System obtains
school demographic information from the PEPS system.
The COD System receives booking acknowledgements, discharge
information, and payments to servicer data from Federal Loan
Servicers.
The COD System receives payment information from the CSB system
on title IV, HEA grant overpayments that are being serviced by FSA's
Default Division. This payment information assesses student aid
eligibility, updates financial aid history, and ensures compliance
with title IV, HEA regulations.
The FMS system provides funding information at the institution
level, refunds of cash, and reallocation information.
[FR Doc. 2019-17615 Filed 8-15-19; 8:45 am]
BILLING CODE 4000-01-P