[Federal Register Volume 84, Number 174 (Monday, September 9, 2019)]
[Notices]
[Pages 47265-47271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19354]



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DEPARTMENT OF EDUCATION

[Docket ID ED-2018-FSA-014]


Privacy Act of 1974; System of Records

AGENCY: Federal Student Aid, U.S. 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 Chief Operating Officer for Federal Student Aid 
(FSA) of the Department of Education (Department) publishes this notice 
of a modified system of records entitled ``National Student Loan Data 
System (NSLDS)'' (18-11-06). The information contained in this system 
is maintained for various purposes relating to students and borrowers. 
This includes determining student/borrower eligibility for Federal 
student financial assistance under the programs authorized by title IV 
of the Higher Education Act of 1965, as amended (HEA). The information 
contained in this system is also maintained to assist institutions of 
higher education in participating in and administering the title IV HEA 
programs by verifying the eligibility of borrowers and tracking loans. 
The information maintained in this system is also maintained to assist 
the Department's oversight and administration of the title IV HEA 
programs including evaluating their effectiveness.

DATES: Submit your comments on this modified system of records notice 
on or before October 9, 2019.
    This modified system of records notice will become applicable upon 
publication in the Federal Register on September 9, 2019. Modified 
routine uses--(1)(f), 1(g), and (1)(p), (3), (5), (7)(b), (8), (11), 
and (12)--and new routine use (13) outlined in the paragraph entitled 
``ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING 
CATEGORIES OF USERS AND PURPOSES OF SUCH USES'' will become applicable 
on October 9, 2019, unless the modified system of records notice needs 
to be changed as a result of public comment. The Department will 
publish any 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 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, Systems Integration Division, System 
Operations and Aid Delivery Management Services, Business Operations, 
Federal Student Aid (FSA), U.S. Department of Education, Union Center 
Plaza (UCP), 830 First Street NE, Room 41F1, 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 provide 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: Valerie Sherrer, Director, System 
Integration Manager, System Integration Division, System Operations and 
Aid Delivery Management Services, Business Operations, FSA, U.S. 
Department of Education, UCP, 830 First Street NE, Room 41F1, 
Washington, DC 20202-5454.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), you may call the Federal Relay Service (FRS), toll 
free, at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Introduction

    The National Student Loan Data System (18-11-06) was last published 
in full in the Federal Register on June 28, 2013 (78 FR 38963) and most 
recently altered on April 2, 2014 (79 FR 18534).
    One of the reasons that the Department is modifying the system of 
records is to indicate that the purposes of the system include 
assisting the Department in identifying individuals who have student 
loans that may be eligible for a total and permanent disability (TPD) 
discharge and streamlining the process for applying for a TPD 
discharge. Three purposes of the system have been updated to the 
section entitled ``PURPOSE(S) OF THE SYSTEM'' to include providing data 
for the calculation of performance metrics related to gainful 
employment programs, informing qualified individuals about TPD 
discharges and streamlining the process for applying for a TPD 
discharge, and providing additional consumer tools to prospective 
students on loan repayment rates, completion rates, and median debt to 
better evaluate the effectiveness of institutions. Furthermore, the 
section is being modified to remove providing an Exit Counseling tool 
for grant and loan programs as a purpose of the system. The Data 
Challenges and Appeals Solutions (DCAS) (18-11-18) system of records 
notice published in the Federal Register on September 21, 2015 (80 FR 
56969-56972) covers records that allow institutions to electronically 
challenge the data used in the gainful employment calculations. The 
Department published the DCAS system of records notice but did not 
utilize the system it was intended to cover. The Department will 
publish a modified system of records notice amending the DCAS system of 
records notice to remove references to gainful employment calculations 
in order to not have duplicating system of records notices for these 
records.
    We also have modified the section entitled ``SECURITY 
CLASSIFICATION'' to change it from ``none'' to ``unclassified'' and the 
section entitled ``SYSTEM LOCATION'' to reflect the current name of the 
data center, and to include the location of the system manager as well 
as an additional location for the system. The Department is also 
including the two locations of customer service centers where records 
are also maintained. The section entitled ``SYSTEM MANAGER'' also has 
been updated to reflect the creation of the System Integration Division 
within FSA's System Operations and Aid Delivery Management Services.
    The section entitled ``CATEGORIES OF RECORDS IN THE SYSTEM'' has 
been updated to include information obtained from other Federal 
agencies to assist the Department in identifying individuals who have 
student loans that may be eligible for a TPD discharge and

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to streamline the process for applying for a TPD discharge.
    The section entitled ``RECORD SOURCE CATEGORIES'' has been updated 
to include information obtained from other Federal agencies and from 
other persons or entities from which data is obtained under the routine 
uses set forth in the system of records notice. This section also has 
been updated to indicate that information is obtained from students and 
parents, rather than indicating that information is only obtained via 
the ``Free Application for Federal Student Aid completed by students 
and parents.''
    The Department is modifying programmatic routine use (1)(f) to 
permit the Department to disclose records to support governmental 
research and policy analysis by governmental organizations at the 
Federal, State, or local level, rather than by Federal State, and local 
agencies, and to replace a requirement ensuring compliance with the 
Privacy Act with a requirement that the recipient must agree to 
establish and maintain safeguards to protect the security and 
confidentiality of the disclosed records.
    The Department is modifying programmatic routine use (1)(g) to 
clarify that in order to support Federal budget analysts in the 
development of budget needs and forecasts, the Department may disclose 
records to the Congressional Budget Office (CBO), in addition to 
Federal and State agencies.
    The Department is also making a minor modification to programmatic 
routine use (1)(p) to clarify that the U.S. Department of the Treasury 
is an additional Federal agency with which the Department may share 
data in NSLDS in order for the Department to evaluate program 
effectiveness and to provide the public with greater transparency about 
programs that receive title IV funds.
    The Department is removing routine use (2) entitled ``Disclosure 
for Use by Other Law Enforcement Agencies'' because the component of 
FSA that maintains the system is not a law enforcement agency.
    The Department is modifying routine use (3)(c), formerly routine 
use (4)(c), 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), formerly routine 
use (6), to remove the reference to ``safeguards required under the 
Privacy Act (5 U.S.C. 552a(m))'' to now require that all contractors 
agree to establish and maintain safeguards to protect the security and 
confidentiality of the disclosed records. The Department is also 
removing language that indicated that the Department would require 
these safeguards ``before entering into such a contract'' to instead 
indicate that they will be included ``as part of such a contract.''
    The Department is updating routine use (7)(b), formerly routine use 
(8)(b), to include FSA contractors as entities to which the Department 
may disclose records in order to permit FSA contractors to make hiring 
or retention decisions or to take other personnel actions with respect 
to their own employees, to the extent that they determine that such 
records are relevant and necessary to their decision or action.
    The Department is modifying routine use (8), formerly routine use 
(9), to standardize it with other language used by the Department to 
permit disclosure of records in the Department's systems of records 
when they are relevant and necessary to employee grievances, 
complaints, or disciplinary actions.
    The Department is modifying routine use (11), formerly routine use 
(12), to permit the Department to disclose records to the CBO, in 
addition to the Office of Management and Budget, 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 Office of Management and Budget 
Memorandum M-17-12 entitled ``Preparing for and Responding to a Breach 
of Personally Identifiable Information,'' the Department is also adding 
an additional routine use (13) to permit the Department to disclose 
records from this system of records in the course of assisting another 
Federal agency or entity in responding to a breach of data as well as 
modifying routine use (12), formerly routine use (13), permitting the 
Department to disclose records from this system of records in 
responding to a breach of data in this system of records.
    The Department is updating the section entitled ``POLICIES AND 
PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS'' to reference the 
current, updated Department records retention and disposition schedule, 
as approved by the National Archives and Records Administration (NARA), 
covering records in this system.
    The section entitled ``ADMINISTRATIVE, TECHNICAL, AND PHYSICAL 
SAFEGUARDS'' has also been modified to more clearly and comprehensively 
explain how the data in NSLDS is protected.
    The sections entitled ``RECORD ACCESS PROCEDURES,'' ``CONTESTING 
RECORD PROCEDURES,'' and ``NOTIFICATION PROCEDURES'' were modified to 
define the ``necessary particulars'' needed to access, contest, or be 
notified of a record.
    The Department has also added a section entitled ``HISTORY.''
    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: September 3, 2019
 Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
    For the reasons discussed in the preamble, the Chief Operating 
Officer, Federal Student Aid (FSA), 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:
    National Student Loan Data System (NSLDS) (18-11-06).

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Director, System Integration Division, System Operations and Aid 
Delivery Management Services, Business Operations, Federal Student Aid 
(FSA), U.S. Department of Education, UCP, 830 First Street, NE, room 
41F1, Washington, DC 20202-5454.
    Mid-Atlantic Data Center (MDC), 250 Burlington Drive, Clarksville, 
Virginia 23927-3201.

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    Briefcase Systems (BSD), 3330 N. Washington Street, Arlington, VA 
22201.
    The following two listings are the locations of the NSLDS Customer 
Service Centers:
    NSLDS Call Center is located at 3833 Greenway Drive, Lawrence, 
Kansas 66046.
    General Dynamics Information Technology (GDIT), 2450 Oakdale Blvd., 
Coralville, IA 52241.

SYSTEM MANAGER(S):
    Director, System Integration Division, System Operations and Aid 
Delivery Management Services, Business Operations, Federal Student Aid 
(FSA), U.S. Department of Education, UCP, 830 First Street NE, Room 
41F1, Washington, DC 20202-5454.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The authority under which the system is maintained includes 
sections 101, 102, 132(i), 485, and 485B of the Higher Education Act of 
1965, as amended (HEA)(20 U.S.C. 1001, 1002, 1015a(i), 1092, and 1092b) 
and section 431 of the General Education Provisions Act (20 U.S.C. 
1231a(2)-(3)). The collection of Social Security numbers (SSNs) of 
borrowers who are covered by this system is authorized by 31 U.S.C. 
7701 and Executive Order 9397 (November 22, 1943), as amended by 
Executive Order 13478 (November 18, 2008).

PURPOSE(S) OF THE SYSTEM:
    The information contained in this system is maintained for the 
following purposes relating to students and borrowers: (1) To determine 
student/borrower eligibility for federal student financial aid programs 
authorized by title IV of the HEA by NSLDS pre- and post-screening 
processes; (2) to report changes in student/borrower enrollment status 
and enrollment in gainful employment programs; (3) to track loan 
borrowers and students who owe grant overpayment amounts (debtors); (4) 
to provide web-based access for borrowers/students to their loan, 
grant, and enrollment data; (5) to maintain information on the status 
of student loans; (6) to maintain information on the Federal Pell Grant 
program, the Academic Competitiveness Grants (ACG) program, the 
National Science and Mathematics Access to Retain Talent (National 
SMART) Grant program, the Teacher Education Assistance for College and 
Higher Education (TEACH) Grant program, the Federal Supplemental 
Educational Opportunity Grant (FSEOG) program, and the Iraq and 
Afghanistan Service Grant program awards to students; (7) to provide 
borrowers and NSLDS users with loan refund/cancellation details; (8) to 
track the level of study and Classification of Instructional Programs 
(CIP) code of students' programs 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, and to 
determine when a borrower who enrolls after reaching the 150 percent 
limit will be responsible for the accruing interest on outstanding 
Direct Subsidized Loans; (9) to inform qualifying individuals about 
total and permanent disability (TPD) discharges and to streamline the 
process for applying for a discharge; and (10) to provide consumer 
tools to prospective students and borrowers to better evaluate the 
effectiveness of institutions' costs, financial aid, loan repayment 
rates, completion rates, median debts, and aggregate earnings of title 
IV aid recipients who were enrolled at postsecondary institutions 
participating in the title IV HEA programs so that prospective students 
can make informed decisions about which postsecondary institution to 
attend.
    The information in NSLDS is also maintained for the following 
purposes relating to institutions of higher education participating in 
and administering the title IV HEA programs: (1) To permit Department 
staff, Department contractors, guaranty agencies, eligible lenders, and 
eligible institutions of higher education to verify the eligibility of 
a student, potential student, or parent for loans or Pell grants; (2) 
to provide student aggregate loan calculations to educational 
institutions; (3) to track loan transfers from one holder or servicer 
to another; (4) to determine default rates for educational 
institutions, guaranty agencies, and lenders; (5) to prepare electronic 
financial aid histories on students or borrowers for educational 
institutions, guaranty agencies, Department staff, and Department 
contractors; (6) to alert educational institutions of changes in 
financial aid eligibility of students via the Transfer Student 
Monitoring process; (7) to assist Department staff, Department 
contractors and agents, guaranty agencies, educational institutions, 
lenders, and servicers in collecting debts arising from the receipt of 
title IV, HEA funds; (8) to assess title IV, HEA program activities by 
guaranty agencies, educational institutions, lenders, and servicers; 
(9) to display organizational contact information provided by 
educational institutions, guaranty agencies, lenders, and servicers; 
(10) to provide reporting capabilities for educational institutions, 
guaranty agencies, lenders, and servicers for use in title IV, HEA 
administrative functions and for the Department for use in oversight 
and compliance; (11) to provide financial institutions and servicers, 
Department staff, and Department contractors with contact information 
on loan holders for use in the collection of loans; (12) to provide 
schools and servicers with information to resolve overpayments of Pell, 
ACG, National SMART, TEACH, Iraq and Afghanistan Service Grants, and 
FSEOG grants; (13) to assist Department staff, contractors, guaranty 
agencies, and the Department of Justice in the collection of debts owed 
to the Department under title IV of the HEA; (14) to obtain data on and 
to report on students in a gainful employment program for the purposes 
of establishing whether a particular gainful employment program is 
successfully preparing students to be gainfully employed and making 
this information available to the institution; (15) to obtain data and 
report the level of study, CIP code, and published length of an 
educational program in which a student receiving title IV, HEA Federal 
student aid is enrolled to ensure his or her eligibility for Direct 
Subsidized Loans is limited to no more than 150 percent of the 
published length of the educational program, and to determine when a 
borrower who enrolls after reaching the 150 percent limit will be 
responsible for the accruing interest on outstanding Direct Subsidized 
Loans; (16) to provide consumer tools that are designed to simplify 
information that prospective students receive about costs, financial 
aid, loan repayment rates, completion rates, median debts, and 
aggregate earnings of title IV aid recipients who were enrolled at 
postsecondary institutions participating in the title IV, HEA programs 
so that these prospective students can make informed decisions about 
which postsecondary institution to attend, and (17) to provide data for 
institutions to challenge their gainful employment performance metrics.
    The information maintained in this system is also maintained for 
the following purposes relating to the Department's oversight and 
administration of the title IV, HEA programs: (1) To assist audit and 
program review planning; (2) to support research studies and policy 
development; (3) to conduct budget analysis and program review 
planning; (4) to provide information that supports the Department's 
compliance with the

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Federal Credit Reform Act of 1990, as amended (CRA) (2 U.S.C. 661 et 
seq.); (5) to ensure only authorized users access the database and to 
maintain a history of the student/borrower information reviewed; (6) to 
track the Department's interest in loans funded through the Ensuring 
Continued Access to Student Loan Act of 2008 (ECASLA) (P.L. 110-227); 
(7) to track TEACH grants that have been converted to loans; (8) to 
track eligibility for Public Service Loan Forgiveness; (9) to assist in 
the calculation of metrics related to gainful employment programs; (10) 
to provide data for program oversight and strategic decision-making in 
the administration of higher education programs; (11) to track 
eligibility for Direct Subsidized Loans and interest subsidy based upon 
the level of study, CIP code, and published length of the educational 
program in which a student is enrolled; and (12) to evaluate the 
effectiveness of an institution's education programs, and help provide 
information to the public at the institutional and programmatic level 
on this effectiveness.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system contains records on individual recipients of aid under 
the title IV, HEA programs.
    This system contains records on borrowers who received loans under 
one of the programs authorized under title IV of the HEA including the 
(1) Direct Loan Program, (2) Federal Family Education Loan (FFEL) 
Program, (3) Federal Insured Student Loan (FISL) Program, and (4) 
Federal Perkins Loan Program (including National Defense Student Loans, 
National Direct Student Loans, and Perkins Expanded Lending and Income 
Contingent Loans) (Perkins Loans). The system also contains records on 
recipients of Federal Pell Grants, ACG, National SMART Grants, TEACH 
Grants, and Iraq and Afghanistan Service Grants, as well as on 
individuals who owe an overpayment on a Federal Pell Grant, an ACG, a 
National SMART Grant, a FSEOG, an Iraq and Afghanistan Service Grant, 
or a Federal Perkins Loan.
    NSLDS further contains student enrollment information for 
individuals who have received title IV, HEA student assistance as well 
as Master Conduit Loan Program Data, Master Loan Participation Program 
(LPP) Data, and loan-level detail on FFEL Subsidized, Unsubsidized, and 
PLUS loans funded through those programs.
    The system also contains records on students who are title IV, HEA 
recipients and who attended, or who are attending, a gainful employment 
program at a postsecondary educational institution.
    The system also contains records on the level of study, CIP code, 
and published length of an educational program in which a student 
receiving title IV, HEA Federal student aid is enrolled to limit his or 
her 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 accruing 
interest on outstanding Direct Subsidized Loans.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in NSLDS include, but are not limited to: (1) Borrower 
identifier information including SSN, name, date of birth, address, 
phone number, email address, and driver's license information; (2) 
information on the borrower's loan(s) covering the period from the 
origination of the loan through final payment, cancellation, 
consolidation, discharge, or other final disposition including details 
such as loan amount, disbursements, balances, loan status, repayment 
plan payments and related information, collections, claims, deferments, 
forbearances, refunds, and cancellations; (3) for students who began a 
program of study that prepares them for gainful employment in a 
recognized occupation pursuant to sections 1001 and 1002 of the HEA 
(``gainful employment program''), student identifiers including the 
student's SSN, date of birth, and name, student enrollment information 
including the Office of Postsecondary Education identification number 
(OPEID number) of the institution, the CIP code for the gainful 
employment program in which the student enrolled, and, if the student 
completed the program, the completion date and the CIP code of the 
completed program, the level of study, the amount of the student's 
private educational loan debt, the amount of institutionally provided 
financing owed by the student, and whether the student matriculated to 
a higher credentialed program at the same institution or another 
institution; (4) aggregated income information on graduates and non-
completers of particular gainful employment programs, and the median 
loan debt incurred by students enrolled in the gainful employment 
program, regardless of whether they completed the program; (5) student 
demographic information, such as dependency status, citizenship, 
veteran status, marital status, gender, income and asset information 
(including income and asset information on the student's spouse, if 
married), expected family contribution, and address; (6) information on 
the parent(s) of a dependent recipient, including, but not limited to: 
Name, date of birth, SSN, marital status, email address, highest level 
of schooling completed, and income and asset information; (7) 
information related to a borrower's application for an income-driven 
repayment plan, including information such as current income, family 
size, repayment plan selection, and, if married, information about the 
borrower's spouse; (8) Federal Pell Grant, ACG Grant, National SMART 
Grant, TEACH Grant, and Iraq and Afghanistan Service Grant amounts and 
dates of disbursement; (9) Federal Pell Grant, ACG Grant, National 
SMART Grant, Iraq and Afghanistan Service Grant, FSEOG, and Federal 
Perkins Loan Program overpayment amounts; (10) demographic and contact 
information on the guaranty agency that guarantees the borrower's FFEL 
loan and the lender(s), holder(s), and servicer(s) of the borrower's 
loan(s); (11) NSLDS user profiles that include name, SSN, date of 
birth, employer, and NSLDS user name; (12) information concerning the 
date of any default on loans and the aggregated loan data to support 
cohort default rate calculations for educational institutions, 
financial institutions, and guaranty agencies; (13) pre- and post-
screening results used to determine a student's or parent's aid 
eligibility; (14) information on financial institutions participating 
in the loan participation and sale programs established by the 
Department under ECASLA, including the collection of: ECASLA loan-level 
funding amounts, dates of ECASLA participation for financial 
institutions, dates and amounts of loans sold to the Department under 
ECASLA, and the amount of loans funded by the Department's programs but 
repurchased by the lender; (15) information on the student's 
educational institution, level of study, the CIP code, and published 
length for the program in which the student enrolled for an institution 
or programs of studies at the institution; and (16) information 
obtained pursuant to matching programs, which includes Medical 
Improvement Not Expected disability status from the U.S. Social 
Security Administration (SSA) and disability determination dates for 
any borrower who is a veteran and has received a U.S. Department of 
Veterans Affairs (VA) disability compensation benefit due to a 100% 
disabling service-connected disability rating or a determination that 
the veteran is totally

[[Page 47269]]

disabled based on an individual unemployability rating, to assist the 
Department in identifying individuals who have student loans that may 
be eligible for a TPD discharge and to streamline the process for 
applying for a TPD discharge.

RECORD SOURCE CATEGORIES:
    Information is obtained from Federal agencies, including SSA and 
VA, guaranty agencies, educational institutions, financial institutions 
and servicers, and students and parents. Information is also obtained 
from other Department systems such as the Federal Loan Servicers 
(covered by the system of records entitled ``Common Services for 
Borrowers (CSB)''); Debt Management Collection System (covered by the 
system of records entitled ``Common Services for Borrowers (CSB)''); 
Common Origination and Disbursement System (covered by the system of 
records entitled ``Common Origination and Disbursement (COD) System''); 
Financial Management System (covered by the system of records entitled 
``Financial Management System (FMS)''); Student Aid internet Gateway, 
Participant Management System (covered by the system of records 
entitled ``Student Aid internet Gateway (SAIG), Participation 
Management System''); Postsecondary Education Participants System 
(covered by the system of records entitled ``Postsecondary Education 
Participants System''); and Central Processing System (covered by the 
system of records entitled ``Federal Student Aid Application File''). 
Information in this system also may be obtained 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 USERS 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 notice 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 
Privacy Act of 1974, as amended (Privacy Act), under a computer 
matching agreement.
    (1) Program Disclosures. The Department may disclose records to the 
specified users for the following program purposes:
    (a) To verify the identity of the applicant involved, the accuracy 
of the record, or to assist with the determination of program 
eligibility and benefits, as well as institutional program eligibility, 
the Department may disclose records to the applicant, guaranty 
agencies, educational institutions, financial institutions and 
servicers, and to Federal and State agencies;
    (b) To support default rate calculations and/or provide information 
on borrowers' current loan status, the Department may disclose records 
to guaranty agencies, educational institutions, financial institutions 
and servicers, and State agencies;
    (c) To determine if educational programs lead to gainful employment 
in a recognized occupation, the Department may disclose records to 
educational institutions;
    (d) To provide financial aid history information to aid in their 
administration of title IV, HEA programs, the Department may disclose 
records to educational institutions, guaranty agencies, loan holders, 
or servicers;
    (e) To support auditors and program reviewers in planning and 
carrying out their assessments of title IV, HEA program compliance, the 
Department may disclose records to guaranty agencies, educational 
institutions, financial institutions and servicers, and to Federal, 
State, and local agencies;
    (f) To support governmental researchers and policy analysts, the 
Department may disclose records to governmental organizations at the 
Federal, State, or local level, using safeguards for system integrity 
and provided that the recipient agrees to establish and maintain 
safeguards to protect the security and confidentiality of the disclosed 
records;
    (g) To support Federal budget analysts in the development of budget 
needs and forecasts, the Department may disclose records to the 
Congressional Budget Office (CBO) and to Federal and State agencies;
    (h) To assist in locating holders of loan(s), the Department may 
disclose records to students/borrowers, guaranty agencies, educational 
institutions, financial institutions and servicers, and Federal 
agencies;
    (i) To assist analysts in assessing title IV, HEA program 
participation by guaranty agencies, educational institutions, and 
financial institutions and servicers, the Department may disclose 
records to Federal and State agencies;
    (j) To assist loan holders in locating borrowers, the Department 
may disclose records to guaranty agencies, educational institutions, 
financial institutions that hold an interest in the loan and their 
servicers, and to Federal agencies;
    (k) To assist with meeting requirements under the CRA, the 
Department may disclose records to Federal agencies;
    (l) To assist program administrators with tracking refunds and 
cancellations of title IV, HEA loans, the Department may disclose 
records to guaranty agencies, educational institutions, financial 
institutions and servicers, and to Federal and State agencies;
    (m) To enforce the terms of a loan, assist in the collection of a 
loan, or assist in the collection of an aid overpayment, the Department 
may disclose records to guaranty agencies, loan servicers, educational 
institutions and financial institutions, to the Department of Justice 
and private counsel retained by the Department of Justice, and to other 
Federal, State, or local agencies;
    (n) To assist the Department in tracking loans funded under ECASLA, 
the Department may disclose records to Federal agencies;
    (o) 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 the applicant, guaranty agencies, 
educational institutions, financial institutions and servicers, and to 
Federal and State agencies; and
    (p) To obtain data needed to assist the Department in evaluating 
the effectiveness of an institution's education programs and to provide 
the public with greater transparency about the level of economic return 
of an educational institution and their programs that receive title IV, 
HEA program assistance, the Department may disclose records to 
educational institutions and to Federal and State agencies, including 
the Social Security Administration and the U.S. Department of the 
Treasury.
    (2) 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,

[[Page 47270]]

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.
    (3) 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 such 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 or any of its components; or
    (ii) Any Department employee in his or her official capacity; or
    (iii) Any Department employee in his or her individual capacity 
where the Department of Justice (DOJ) agrees to or has been requested 
to provide or arrange for representation of the employee; or
    (iv) Any Department employee in his or her individual capacity 
where the Department requests representation for or 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 
the 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 
disclosure of certain records to an adjudicative body before which the 
Department is authorized to appear or to a person or entity designated 
by the Department or otherwise empowered to resolve or mediate disputes 
is relevant and necessary to judicial or administrative litigation or 
ADR, 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 is 
relevant and necessary to judicial or administrative litigation or ADR, 
the Department may disclose those records as a routine use to the 
party, counsel, representative, or witness.
    (4) Freedom of Information Act (FOIA) or Privacy Act Advice 
Disclosure. The Department may disclose records to the DOJ or the 
Office of Management and Budget (OMB) if the Department seeks advice 
regarding whether records maintained in this system of records are 
required to be disclosed under the FOIA or the Privacy Act.
    (5) Contract Disclosure. If the Department contracts with an entity 
to perform any function that requires disclosing records to the 
contractor's employees, 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.
    (6) Congressional Member Disclosure. The Department may disclose 
records to a Member of Congress in response to an inquiry from the 
Member made at the written request of the individual whose records are 
being disclosed. The Member's right to the information is no greater 
than the right of the individual who requested it.
    (7) 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 Departmental 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, Professional 
Organizations, or FSA Contractors. The Department may disclose a record 
to a Federal, State, local, or other public authority, professional 
organization, or FSA contractor, 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.
    (8) 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 a record from this system of 
records during the course of investigation, fact-finding, mediation, 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.
    (9) Labor Organization Disclosure. The Department may disclose 
records from this system of records to an arbitrator to resolve 
disputes under a negotiated grievance procedure or to officials of 
labor organizations recognized under 5 U.S.C. 71 when relevant and 
necessary to their duties of exclusive representation.
    (10) 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.
    (11) Disclosure to the OMB or CBO for CRA Support. The Department 
may disclose records to OMB or CBO as necessary to fulfill CRA 
requirements in accordance with 2 U.S.C. 661b.
    (12) Disclosure in the Course of Responding to Breach of Data. The 
Department may disclose records from this system 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.
    (13) 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.

[[Page 47271]]

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12): The Department may 
disclose the following information to a consumer reporting agency 
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 subsection 31 U.S.C. 3711(e). A 
consumer reporting agency to which these disclosures may be made is 
defined in 15 U.S.C. 1681a(f) and 31 U.S.C. 3701(a)(3).

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    The records are stored electronically.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    In order for users to retrieve student/borrower information, they 
must supply the student/borrower SSN, name, and date of birth.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    All records are retained and disposed of in accordance with ED 
Records Schedule 051: National Student Loan Data System (NSLDS) (DAA-
0441-2017-0004) (ED 051). Records are destroyed 30 years after cutoff. 
Cutoff is annually when an applicable account is paid-in-full.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Authorized users: Access to the system is limited to authorized 
NSLDS program personnel and contractors responsible for administering 
the NSLDS program. Authorized personnel include ED employees and 
officials, financial and fiscal management personnel, computer 
personnel and program managers who have responsibilities for 
implementing the NSLDS program. Read-only users: Read-only access is 
given to servicers, holders, financial/fiscal management personnel, and 
institutional personnel.
    Physical safeguards: Magnetic tapes, disc packs, computer 
equipment, and other forms of data are stored in areas where fire and 
life safety codes are strictly enforced. Security guards are staffed 24 
hours a day, seven days a week, to perform random checks on the 
physical security of the record storage areas.
    Procedural safeguards: A password is required to access the 
terminal, and a data set name controls the release of data to only 
authorized users. In addition, all sensitive data is encrypted using 
Oracle Transparent Data Encryption functionality. Access to records is 
strictly limited to those staff members trained in accordance with the 
Privacy Act and Automatic Data Processing (ADP) security procedures. 
Contractors are required to maintain confidentiality safeguards with 
respect to these records. Contractors are instructed to make no further 
disclosure of the records except as authorized by the System Manager 
and permitted by the Privacy Act. All individuals who have access to 
these records receive appropriate ADP security clearances. Department 
personnel make site visits to ADP facilities for the purpose of 
ensuring that ADP security procedures continue to be met. Privacy Act 
and ADP system security requirements are specifically included in 
contracts. The NSLDS project directors, project officers, and the 
system manager oversee compliance with these requirements.

RECORD ACCESS PROCEDURES:
    If you wish to gain access to a record in this system, you must 
contact the system manager with the necessary particulars such as your 
name, date of birth, SSN, the name of the school or lender from which 
the loan or grant was obtained, 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 of the 
regulations at 34 CFR 5b.5, including proof of identity.

CONTESTING RECORD PROCEDURES:
    If you wish to contest the content of a record in the system of 
records, you must contact the system manager with the necessary 
particulars such as your name, date of birth, SSN, the name of the 
school or lender from which the loan or grant was obtained, and any 
other identifying information requested by the Department while 
processing the request, to distinguish between individuals with the 
same name. You must also identify the specific item(s) to be changed, 
and provide a justification for the change, including any supporting 
documentation. Requests to amend a record must meet the requirements of 
the Department's Privacy Act regulations at 34 CFR 5b.7.

NOTIFICATION PROCEDURES:
    If you wish to determine whether a record exists regarding you in 
this system of records, you must contact the system manager with the 
necessary particulars such as your name, date of birth, SSN, the name 
of the school or lender from which the loan or grant was obtained, and 
any other identifying information requested by the Department while 
processing the request, to distinguish between individuals with the 
same name. Requests for notification about whether the system of 
records contains information about an individual must meet the 
requirements of the regulations at 34 CFR 5b.5, including proof of 
identity.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    The System of Records entitled ``National Student Loan Data System 
(NSLDS) program'' (18-11-06), was published on June 29, 1994 (59 FR 
33491-33494), altered on December 20, 1994 (FR 65532-65535), 
republished in full on December 27, 1999 (64 FR 72395-72397), altered 
on September 7, 2010 (75 FR 54331-54336), altered and republished in 
full on June 24, 2011 (76 FR 37095-37100), last published in full in 
the Federal Register on June 28, 2013 (78 FR 38963-38969), and most 
recently altered on April 2, 2014 (79 FR 18534-18536).

[FR Doc. 2019-19354 Filed 9-6-19; 8:45 am]
 BILLING CODE 4000-01-P