[Federal Register Volume 84, Number 209 (Tuesday, October 29, 2019)]
[Notices]
[Pages 57856-57863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23581]


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DEPARTMENT OF EDUCATION

[Docket ID ED-2017-FSA-0105]


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 U.S. Department of Education (Department) modifies 
the system of records entitled ``Federal Student Aid Application File'' 
(18-11-01).
    The Federal Student Aid Application File system of records contains 
information provided by applicants for title IV of the Higher Education 
Act of 1965, as amended, (HEA) program assistance, which is collected 
from the Free Application for Federal Student Aid (FAFSA). Among other 
purposes described in this notice, the information collected is 
maintained in order to: Determine an applicant's eligibility for the 
Federal student financial assistance programs authorized by title IV of 
the HEA; make a loan, grant, or scholarship; and verify the identity of 
the applicant.

DATES: Submit your comments on or before November 29, 2019.
    This modified system of records will become applicable upon 
publication in the Federal Register on October 29, 2019. Modified 
routine uses (1)(a), (1)(e), (1)(m), (3), (5), (8), (11), (12), (14) 
and new routine uses (15) and (16) listed under ``ROUTINE USES OF 
RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND 
PURPOSES OF SUCH USES'' will become applicable on November 29, 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, Systems Integration Division, Systems 
Operations and Aid Delivery Management Services, Federal Student Aid, 
U.S. Department of Education, 830 First Street NE, Room 41F1, Union 
Center Plaza (UCP), Washington, DC 20202-5144.

    Privacy Note: The Department's policy is to make all comments 
received from

[[Page 57857]]

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: Director Lisa DiCarlo, Application 
Processing Division, Customer Experience Group, Federal Student Aid, 
U.S. Department of Education, 500 West Madison Street, Room 1432/14th 
Floor, Chicago, IL 60616. Telephone: (312) 730-1600.
    If you use a telecommunications device for the deaf (TDD) or text 
telephone (TTY), you may call the Federal Relay Service (FRS), at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: The Department is updating the section of 
the notice entitled ``SECURITY CLASSIFICATION'' by changing the 
classification from ``none'' to ``unclassified.'' The Department is 
updating the section of the notice entitled ``SYSTEM LOCATION'' by 
revising two locations and adding five locations. The Department is 
updating the address of the ``SYSTEM MANAGER(S)'' to reflect a change 
in location. The Department is updating the section of the notice 
entitled ``AUTHORITY FOR MAINTENANCE OF THE SYSTEM'', to include 
additional authority to collect Social Security numbers (SSNs) for use 
in this system.
    The Department is updating the section of the notice entitled 
``CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM'' to remove the 
reference to secondary school students about whom secondary schools, 
local educational agencies, and other local and State agencies had 
previously submitted information to the Department in order for the 
Department to provide these entities with the students' FAFSA 
completion filing status.
    The Department is updating the section of the notice entitled 
``CATEGORIES OF RECORDS IN THE SYSTEM'' to delete the Institutional 
Student Information Record (ISIR) Analysis (IA) Tools functionality and 
a description of the records post-secondary institutions were able to 
create with the IA Tools, because the IA Tools have been discontinued. 
The Department is also adding the Person Authentication System (PAS) to 
the Department systems that provide applicant information to this 
system of records.
    The Department is updating the section of the notice entitled 
``RECORD SOURCE CATEGORIES'' to reflect changes due to the new mobile 
application. ``MyStudentAid'' is a mobile application used by students 
and their parents to submit their post-secondary applications for title 
IV student financial aid grants and loans as part of the FAFSA process. 
This is an alternative to completing the FAFSA application on paper or 
on the FAFSA.gov website. This application populates the Central 
Processing System (CPS) with the applicant's information. The 
Department is also modifying this section to clarify that information 
in the system may also be obtained from other persons or entities from 
which data is obtained under routine uses set forth in the notice.
    The Department is substantially revising the section of the notice 
entitled ``ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING 
CATEGORIES OF USERS AND PURPOSES OF SUCH USES'' to reflect changes in 
program operations. The Department is modifying routine use (1) 
entitled ``Program Disclosures'' to remove the purposes of verifying an 
applicant's spousal information and informing an applicant's spouse of 
information about the spouse from routine use disclosures (a) and (m). 
In routine use (1)(a) the change clarifies that the Department will not 
use this routine use to disclose information from this system of 
records for the purpose of verifying the identity of the applicant's 
spouse. In routine use (1)(m) the change clarifies that the Department 
will not use this routine use to disclose information from this system 
of records to an applicant's spouse for the purpose of informing the 
spouse of information about the spouse in an application for title IV, 
HEA funds.
    The Department is modifying routine use (1)(e) to remove language 
indicating that the Department may disclose records to financial 
institutions participating in the Federal Family Education Loan (FFEL) 
Programs in order to facilitate assessments of title IV, HEA program 
compliance since new loans were not originated under FFEL after 2010.
    The Department is deleting routine use (1)(p) because the 
Department is no longer disclosing the FAFSA filing status of a student 
to a Local Educational Agency (LEA), secondary school where the student 
is or was enrolled, or other State, local, or private entity designated 
by the Secretary, but rather is permitting State agencies to re-
disclose the FAFSA filing status of a student under specified 
conditions.
    The Department is deleting the former 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 and, therefore, is renumbering the former routine use (3) 
entitled ``Enforcement Disclosure'' to the current routine use (2). The 
subsequent 12 routine use disclosures are, therefore, renumbered by a 
reduction factor of one in the current notice.
    The Department is modifying routine use (3) entitled ``Litigation 
and Alternative Dispute Resolution (ADR) Disclosure'' to insert the 
word ``person'' in place of the word ``individual'' in subsection (c) 
in order to reduce public confusion that may have resulted from the 
Department's prior use of the word ``individual,'' given that the word 
``individual'' is defined in the Privacy Act and the Department did not 
intend to incorporate the Privacy Act definition of this word.
    The Department is modifying routine use (5) entitled ``Contracting 
Disclosure'' and routine use (11) entitled ``Research Disclosure'' to 
remove language that referenced safeguards required under the Privacy 
Act because this language was not clear and also limited the Department 
to making disclosures to contractors acting within the scope of 
subsection (m) of the Privacy Act. The Department's revised language 
clarifies that contractors and researchers to whom disclosures are made 
under these routine uses are required to agree to safeguards to protect 
the security and confidentiality of the records in the system and 
permits the Department to disclose records to contractors beyond the 
scope of subsection (m) of the Privacy Act. The Department also is 
modifying routine use (5) to clarify that an agreement with the 
contractor will be reached as part of the contract, rather than before 
entering into the contract.
    The Department is modifying routine use (8) entitled ``Employee 
Grievance, Complaint, or Conduct Disclosure'' to include records of 
present or former employees and to allow disclosure to any party to a 
grievance, complaint, or action and to the party's counsel. These

[[Page 57858]]

changes standardize the language in this routine use with the language 
used in the Department's other systems of records notices.
    The Department is updating routine use (12) formerly entitled 
``Disclosure to the OMB for Federal Credit Reform Act (CRA) Support'' 
to add the Congressional Budget Office to the entities which may be 
provided with access to the Department's records relating to the 
development of more accurate data on historical performance of direct 
loan and loan guarantee programs and to improve estimates of costs of 
these programs.
    Pursuant to the requirements in Office of Management and Budget 
(OMB) M-17-12, the Department is modifying routine use (14) entitled 
``Disclosure in the Course of Responding to a Breach of Data'' and 
adding routine use (15) entitled ``Disclosure in Assisting another 
Agency in Responding to a Breach of Data.''
    The Department is adding routine use (16) entitled ``Disclosure of 
Information to State and Federal Agencies'' to permit disclosure of 
records for the purposes of identifying, preventing, or recouping 
improper payments, as authorized pursuant to the Improper Payments 
Elimination and Recovery Improvement Act of 2012, Public Law 112-248, 
as amended, and to permit the Department to comply with the 
requirements of 31 U.S.C. 3720B.
    The Department is updating the section of the notice entitled 
``POLICIES AND PRACTICES FOR STORAGE OF RECORDS'' to more fully address 
the medium in which the records are stored in this system and to make 
other updates, including a change to the record storage location for 
paper applications.
    The Department is updating the section of the notice 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).
    The Department is revising the section of the notice entitled 
``ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS'' to update the 
computer system safeguards used to protect the system from tampering.
    The Department is modifying the sections of the notice entitled 
``RECORD ACCESS PROCEDURES'', ``CONTESTING RECORD PROCEDURES'', and 
``NOTIFICATION PROCEDURES'' to reflect the current process of 
requesting access, contesting, and notification of records.
    Finally the Department is adding a new section entitled ``HISTORY'' 
to the notice to follow the required template in OMB Circular No. A-
108.
    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: October 24, 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:
    Federal Student Aid Application File (18-11-01).

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Conduent 1084 South Laurel Road, Building 3, London, KY 40744. This 
site is the location where paper Free Application for Federal Student 
Aid (FAFSA) applications and related paper documents are stored until 
sent to the Federal Records Center for long-term storage and disposal.
    General Dynamics Information Technology (GDIT), 2450 Oakdale 
Boulevard, Coralville, IA 52241. This location hosts CPS/Student Aid 
internet Gateway (SAIG) help desk agents and Participation Management 
staff who provide technical assistance to postsecondary title IV 
institutions.
    GDIT Image and Data Capture (IDC) Center, 1084 South Laurel Road, 
London, KY 40744. The IDC scans paper financial aid documents and 
correspondence, key-enters the data, and electronically transmits the 
data and related images to the CPS for processing.
    GDIT Data Center, 9651 Hornbaker Road, Manassas, VA 20109. This 
site hosts some of the hardware and software components of the CPS 
system.
    GDIT Customer Interaction Center (CPS/SAIG), 3833 Greenway Drive, 
Lawrence, KS 55046. CPS/SAIG is the help desk that provides customer 
service to postsecondary title IV institutions using the CPS and SAIG 
websites.
    NGDC, 250 Burlington Drive, Clarksville, VA 23927. NGDC hosts the 
infrastructure that supports CPS applications.
    Freedom Graphic Systems (FGS), 780 McClure Road, Aurora, IL 60502. 
This facility handles print and mail operations.

SYSTEM MANAGER(S):
    Director, Application Processing Division, Customer Experience 
Group, Federal Student Aid, U.S. Department of Education, 500 West 
Madison Street, Room 1432/14th Floor, Chicago, IL 60616.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Title IV of the Higher Education Act of 1965, as amended (HEA) (20 
U.S.C. 1070 et seq.). The collection of Social Security numbers (SSNs) 
of users of this system is also authorized by 31 U.S.C. 7701 and 
Executive Order 9397, as amended by Executive Order 13478 (November 18, 
2008).

PURPOSE(S) OF THE SYSTEM:
    The information contained in this system is maintained for the 
purposes of: (1) Assisting with the determination, correction, 
processing, tracking, and reporting of program eligibility and benefits 
for the Federal student financial assistance programs authorized by 
title IV of the HEA; (2) making a loan, grant, or scholarship; (3) 
verifying the identity of the applicant, and the parent(s) of a 
dependent applicant, and the accuracy of the information in this 
system; (4) reporting the results of the need analysis, Federal Pell 
Grant eligibility determination, and the results of duly authorized 
matching programs between the Department and other Federal agencies to 
applicants, postsecondary institutions, third-party servicers, State 
agencies designated by the applicant, and other Departmental and 
investigative components for use in

[[Page 57859]]

operating and evaluating the title IV, HEA programs and in the 
imposition of criminal, civil, or administrative sanctions; (5) 
enforcing the terms and conditions of a title IV, HEA loan or grant; 
(6) servicing and collecting a delinquent title IV, HEA loan or grant; 
(7) initiating enforcement action against an individual involved in 
program fraud, abuse, or noncompliance; (8) locating a debtor; (9) 
maintaining a record of the data supplied by those requesting title IV, 
HEA program assistance; (10) ensuring compliance with and enforcing 
title IV, HEA programmatic requirements; (11) acting as a repository 
and source for information necessary to fulfill the requirements of 
title IV of the HEA; (12) evaluating title IV, HEA program 
effectiveness; (13) enabling institutions of higher education (IHEs) 
designated by the applicant to review and analyze the financial aid 
data of their applicant population; (14) assisting students with the 
completion of the application for the Federal student financial 
assistance programs authorized by title IV of the HEA; (15) determining 
the eligibility of applicants for the award of State postsecondary 
education assistance and for the award of aid by eligible IHE or other 
entities designated by the Secretary and administering those awards; 
and (16) promoting and encouraging application for title IV, HEA 
program assistance, State assistance, and aid awarded by the IHE or 
other entities designated by the Secretary.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The Federal Student Aid Application File contains records on 
students who apply for Federal student financial assistance programs 
authorized by title IV of the HEA. This system also contains 
information on the parent(s) of a dependent applicant and the spouse of 
a married applicant.

CATEGORIES OF RECORDS IN THE SYSTEM:
    This system of records contains information provided by applicants 
for title IV, HEA program assistance, on the FAFSA, including, but not 
limited to, the applicant's name, address, SSN, date of birth, 
telephone number, driver's license number, email address, citizenship 
status, marital status, legal residence, status as a veteran, 
educational status, and financial data. This system also contains 
information provided about the parent(s) of a dependent applicant, 
including, but not limited to, the parent's highest level of schooling 
completed, marital status, SSN, last name and first initial, date of 
birth, email address, number in household supported by the parent, and 
income and asset information. For an applicant who is married, this 
system of records also contains spousal income and asset information.
    The system determines an applicant's expected family contribution 
(EFC). The EFC is used by IHEs to determine the student's eligibility 
for Federal and institutional program assistance, and by States to 
determine the student's eligibility for State grants. The Department 
notifies the applicant of the results of his or her application via the 
Student Aid Report (SAR). The Department provides the IHEs identified 
on the applicant's FAFSA with the Institutional Student Information 
Record (ISIR), which indicates whether there are discrepant or 
insufficient data, school adjustments, or CPS assumptions that affect 
processing of the FAFSA. Other information in the system includes, but 
is not limited to: Secondary EFC (an EFC calculated from the full EFC 
formula and is printed in the financial aid administrator's (FAA) 
Information section of the ISIR), dependency status, Federal Pell Grant 
Eligibility, duplicate SSN (an indicator that is set to alert ISIR 
recipients that two applications were processed with the same SSN), 
selection for verification, Simplified Needs Test (SNT) or Automatic 
Zero EFC (used for extremely low family income), CPS processing 
comments, reject codes (explanation for applicant's FAFSA not computing 
EFC), assumptions made with regard to the student's data due to 
incomplete or inconsistent FAFSA data, FAA adjustments including 
dependency status overrides, and CPS record processing information 
(application receipt date, transaction number, transaction process 
date, SAR Serial Number, Compute Number, Data Release Number (DRN; a 
four-digit number assigned to each application), National Student Loan 
Database System (NSLDS) match results, a bar code, and transaction 
source).
    Information from other Department systems, such as NSLDS, the 
Common Origination and Disbursement (COD) System, and the SAIG 
Participation Management System, is added to this system of records. 
The Appendix contains a more detailed description of the data added to 
this system of records as a result of the exchanges of data with other 
Department systems and the Department's matching programs with other 
Federal agencies.

RECORD SOURCE CATEGORIES:
    Information in this system is obtained from applicants and the 
parents of dependent applicants for title IV, HEA program assistance, 
on the paper FAFSA, FAFSA on the Web, FAFSA by phone, mobile 
application, and the authorized employees or representatives of 
authorized entities as follows: Postsecondary educational institutions, 
institutional third-party servicers, Federal Family Education Loan 
(FFEL) Program lenders, FFEL Program guaranty agencies, Federal loan 
servicers, State grant agencies, other federal agencies, research 
agencies, and from other persons or entities from which data is 
obtained under the routine uses set forth below.
    Postsecondary institutions designated by the applicant or third-
party servicers designated by the postsecondary institution may correct 
the records in this system as a result of documentation provided by the 
applicant or by a dependent applicant's parents, such as Federal income 
return(s) (Internal Revenue Service (IRS) Form 1040, IRS Form 1040A, or 
IRS Form 1040EZ), Social Security card(s), and Department of Homeland 
Security I-551 Resident Alien cards.
    This system contains information added during CPS processing and 
information received from other Department systems, including the 
NSLDS, the COD System, and the SAIG Participation Management System. 
For more information about the information received from these other 
Department systems, see the Appendix.
    The results of matching programs with the following Federal 
agencies are also added to the student's record during CPS processing: 
The Social Security Administration (SSA), the Department of Veterans 
Affairs (VA), the Selective Service System (SSS), the Department of 
Homeland Security (DHS), the Department of Justice (DOJ), and the 
Department of Defense (DoD). For more information about the information 
received from these matching programs, see the Appendix.
    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 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. These 
disclosures may be made on a case-by-case basis or pursuant to a 
matching agreement that

[[Page 57860]]

meets the requirements of the Privacy Act of 1974, as amended (Privacy 
Act). Section 483(a)(3)(E) of the HEA allows information collected via 
the electronic version of the FAFSA to be used only for the 
application, award, and administration of aid awarded under title IV of 
the HEA, by States, by eligible institutions, or by such entities as 
the Secretary may designate.
    (1) Program Disclosures.
    (a) To verify the identity of the applicant and the parent(s) of a 
dependent applicant; to determine the accuracy of the information 
contained in the record; to support compliance with title IV, HEA 
statutory and regulatory requirements; and to assist with the 
determination, correction, processing, tracking, and reporting of 
program eligibility and benefits, the Department may disclose records 
to guaranty agencies and financial institutions participating in the 
FFEL Programs, IHEs, third party servicers, and Federal and State 
agencies;
    (b) To provide an applicant's financial aid history, including 
information about the applicant's title IV, HEA loan defaults and title 
IV, HEA grant program overpayments, the Department may disclose records 
to IHEs, guaranty and State agencies, financial institutions 
participating in the FFEL Programs, and third party servicers;
    (c) To facilitate receiving and correcting application data, 
processing Federal Pell Grants and Direct Loans, and reporting Federal 
Perkins Loan Program expenditures to the Department's processing and 
reporting systems, the Department may disclose records to IHEs, State 
agencies, and third party servicers;
    (d) To assist loan holders with the collection and servicing of 
title IV, HEA loans, to support pre-claims/supplemental pre-claims 
assistance, to assist in locating borrowers, and to assist in locating 
students who owe grant overpayments, the Department may disclose 
records to guaranty agencies and financial institutions participating 
in the FFEL Programs, IHEs, third-party servicers, and Federal, State, 
and local agencies;
    (e) To facilitate assessments of title IV, HEA program compliance, 
the Department may disclose records to guaranty agencies and IHEs, 
third-party servicers, and Federal, State, and local agencies;
    (f) To assist in locating holders of loan(s), the Department may 
disclose records to student borrowers, guaranty agencies and financial 
institutions participating in the FFEL Programs, IHEs, third-party 
servicers, and Federal, State, and local agencies;
    (g) To assist in assessing the administration of title IV, HEA 
program funds by guaranty agencies, financial institutions, IHEs, and 
third-party servicers, the Department may disclose records to Federal 
and State agencies;
    (h) To enforce the terms of a loan or grant or to assist in the 
collection of loan or grant overpayments, the Department may disclose 
records to guaranty agencies and financial institutions participating 
in the FFEL programs, IHEs, third-party servicers, and Federal, State, 
and local agencies;
    (i) To assist borrowers in repayment, the Department may disclose 
records to guaranty agencies and financial institutions participating 
in the FFEL program, IHEs, third-party servicers, and Federal, State, 
and local agencies;
    (j) To initiate legal action against an individual involved in an 
illegal or unauthorized title IV, HEA program expenditure or activity, 
the Department may disclose records to guaranty agencies and financial 
institutions participating in the FFEL programs, IHEs, third-party 
servicers, and Federal, State, and local agencies;
    (k) To initiate or support a limitation, suspension, or termination 
action, an emergency action, or a debarment or suspension action, the 
Department may disclose records to guaranty agencies and financial 
institutions participating in the FFEL programs, IHEs, third-party 
servicers, and Federal, State, and local agencies;
    (l) To investigate complaints, update files, and correct errors, 
the Department may disclose records to guaranty agencies and financial 
institutions participating in the FFEL programs, IHEs, third-party 
servicers, and Federal, State, and local agencies;
    (m) To inform the parent(s) of a dependent applicant of information 
about the parent(s) in an application for title IV, HEA funds, the 
Department may disclose records to the parent(s);
    (n) To disclose to the parent(s) of a dependent applicant applying 
for a PLUS loan (to be used on behalf of a student), to identify the 
student as the correct beneficiary of the PLUS loan funds, and to allow 
the processing of the PLUS loan application and promissory note, the 
Department may disclose records to the parent(s) applying for the PLUS 
loan;
    (o) To expedite the student application process, the Department may 
disclose information from this system, upon request by a third party, 
provided that the third party provides the Department with the 
applicant's first and last name, SSN, date of birth, and DRN;
    (p) To enable an applicant, should the applicant wish to do so, to 
obtain information from other Federal agencies' records that will 
assist the applicant in completing the FAFSA online, the Department may 
disclose information from this system of records to other Federal 
agencies, such as the IRS; and
    (q) To determine an applicant's eligibility for the award of State 
postsecondary education assistance and for the award of aid by eligible 
IHEs or other entities designated by the Secretary and to administer 
those awards, the Department may disclose information from this system 
of records to State agencies, eligible IHEs, and other entities 
designated by the Secretary.
    (2) Enforcement Disclosure. If information in the system of 
records, either alone or in connection with other information, 
indicates a violation or potential violation of any applicable 
statutory, regulatory, or legally binding requirement, the Department 
may disclose records to an entity charged with investigating or 
prosecuting those violations or potential violations.
    (3) Litigation and Alternative Dispute Resolution (ADR) Disclosure.
    (a) Introduction. In the event that one of the parties listed in 
sub-paragraphs (i) through (v) is involved in litigation or ADR, or has 
an interest in litigation or ADR, the Department may disclose certain 
records to the parties described in paragraphs (b), (c), and (d) of 
this routine use under the conditions specified in those paragraphs:
    (i) The Department 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 
where the Department of Justice (DOJ) agrees to or has been requested 
to provide or arrange for representation of the employee;
    (iv) Any Department employee in his or her individual capacity 
where the Department has agreed to represent the employee; and
    (v) The United States, where the Department determines that the 
litigation is likely to affect the Department or any of its components.
    (b) Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
litigation or ADR, the Department may disclose those records as a 
routine use to the DOJ.
    (c) 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

[[Page 57861]]

entity designated by the Department or otherwise empowered to resolve 
or mediate disputes is relevant and necessary to 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 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) and Privacy Act Advice 
Disclosure. The Department may disclose records to the DOJ or to the 
Office of Management and Budget (OMB) if the Department determines that 
disclosure would help in determining whether 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 records in the system.
    (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 Department decision concerning the 
hiring or retention of an employee or other personnel action, the 
issuance of a security clearance, the letting of a contract, or the 
issuance of a license, grant, or other benefit.
    (b) For Decisions by Other Public Agencies and Professional 
Organizations. The Department may disclose a record to a Federal, 
State, local, or 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.
    (8) Employee Grievance, Complaint, or Conduct Disclosure. If a 
record is relevant and necessary to an employee grievance, complaint, 
or disciplinary action involving a present or former employee of the 
Department, the Department may disclose a record from this system of 
records 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.
    (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. chapter 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) Research Disclosure. The Department may disclose records to a 
researcher if the Department determines that the individual or 
organization to which the disclosure would be made is qualified to 
carry out specific research related to functions or purposes of this 
system of records. The 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 the OMB and Congressional Budget Office (CBO) 
for Federal Credit Reform Act (FCRA) Support. The Department may 
disclose records to OMB and CBO as necessary to fulfill FCRA 
requirements in accordance with 2 U.S.C. 661b.
    (13) Disclosure to Third Parties through Matching Programs. Any 
information from this system of records, including personal information 
obtained from other agencies through matching programs, may be 
disclosed to any third party through a matching program in connection 
with an individual's application or participation in a title IV, HEA 
grant or loan program administered by the Department. Purposes of these 
disclosures may be to determine program eligibility and benefits, 
enforce the conditions and terms of a loan or grant, permit the 
servicing and collecting of a loan or grant, counsel the individual in 
repayment efforts, investigate possible fraud, verify compliance with 
program regulations, locate a delinquent or defaulted debtor, or 
initiate legal action against an individual involved in program fraud 
or abuse.
    (14) Disclosure in the Course of Responding to Breach of Data. The 
Department may disclose 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, program, and operation), 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.
    (15) 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.
    (16) Disclosure of Information to State and Federal Agencies. The 
Department may disclose records from this system to (a) a Federal or 
State agency, its employees, agents (including contractors of its 
agents), or contractors, or (b) a fiscal or financial agent designated 
by the U.S. Department of the Treasury, including employees, agents, or 
contractors of such agent, for the purpose of identifying, preventing, 
or recouping improper payments to an applicant for, or recipient of, 
Federal funds.

[[Page 57862]]

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 at 31 U.S.C. 3701(a)(3).

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    System records are paper-based and stored in locked rooms or 
electronic and stored on secured computer systems and in the cloud.
    Paper applications are stored in standard Federal Records Center 
boxes in locked storage rooms at the contractor facility in London, 
Kentucky, and then moved to the Federal Records Center at the National 
Archives and Records Administration (NARA), where the records are 
stored until disposed.
    Digitized paper applicant records, which include optically imaged 
documents, are stored on DADS (disks) in a virtual disk library, which 
is also electronic, in the computer facilities controlled by the 
Federal Student Aid Data Center.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records are indexed and retrieved by the applicant's SSN, name, and 
the academic year in which the applicant applied for title IV, HEA 
program assistance.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Department of Education Records Schedule No. 072 (DAA-0441-2013-
0002), FSA Application, Origination, and Disbursement Records (ED 072) 
is being amended, pending approval by NARA. Applicable Department 
records will not be destroyed until applicable NARA-approved amendments 
to ED 072 are in effect.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    All users of the Federal Student Aid Application File system will 
have a unique user ID with a password. All physical access to the data 
housed at system locations is controlled and monitored by security 
personnel who check each individual entering the building for his or 
her employee or visitor badge. The computer system employed by the 
Department offers a high degree of resistance to tampering and 
circumvention with firewalls, encryption, and password protection. 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 interactions by users 
of the Federal Student Aid Application File system are recorded.

RECORD ACCESS PROCEDURES:
    If you wish to gain access to a record in this system, you must 
make a Privacy Act request through the U.S. Department of Education, 
FOIA Office at https://www2.ed.gov/policy/gen/leg/foia/request_privacy.html by completing the applicable request forms. 
Requests by an individual for access to a record must meet the 
requirements of the Department's Privacy Act regulations at 34 CFR 
5b.5, including proof of identity.

CONTESTING RECORD PROCEDURES:
    If you wish to contest or change the content of a record about you 
in the system of records, provide the System Manager with your name, 
date of birth, SSN, and any other identifying information requested by 
the Department, while processing the request, to distinguish between 
individuals with the same name. Identify the specific items to be 
changed, and provide a justification for the change.
    To contest the content of a FAFSA record for the current processing 
year (which begins on October 1 of the prior calendar year and 
continues for 21 months until June 30 of the following calendar year), 
send your request to the FOIA Office listed in the Notification 
Procedures section.
    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 about you in the 
system of records, you must make a Privacy Act request through the U.S. 
Department of Education, FOIA Office at https://www2.ed.gov/policy/gen/leg/foia/request_privacy.html by completing the applicable request 
forms. Requests for notification about whether the system of records 
contains information about an individual must meet the requirements of 
the Department's Privacy Act regulations at 34 CFR 5b.5, including 
proof of identity.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    The system of records was published in the Federal Register at 64 
FR 30159-30161 (June 4, 1999), corrected by 64 FR 72384, 72407 
(December 27, 1999), corrected by 65 FR 11294-11295 (March 2, 2000), 
corrected by 66 FR 18758 (April 11, 2001), altered by 74 FR 68802-68808 
(December 29, 2009), and most recently altered by 76 FR 46774-46781 
(August 3, 2011).
Appendix to 18-11-01

ADDITIONAL INFORMATION ABOUT CATEGORIES OF RECORDS IN THE SYSTEM AND 
RECORD SOURCE CATEGORIES:
    Data provided to the Department as a result of computer matching 
with other Federal agencies are added during CPS processing. The 
Department's present computer matches are with the SSA to verify the 
SSNs of applicants, and dependent applicants' parent(s), and to confirm 
the U.S. citizenship status of applicants as recorded in SSA records 
and date of death (if applicable) of applicants, and dependent 
applicants' parents, pursuant to sections 428B(f)(2), 483(a)(12), and 
484(g) and (p) of the HEA (20 U.S.C. 1078-2(f)(2), 1090(a)(12), and 
1091(g)and (p)); with the VA to verify the status of applicants who 
claim to be veterans, pursuant to section 480(c) and (d)(1)(D) of the 
HEA (20 U.S.C. 1087vv(c) and (d)(1)(D)); with the SSS to confirm the 
registration status of male applicants, pursuant to section 484(n) of 
the HEA (20 U.S.C. 1091(n)); with the DHS to confirm the immigration 
status of applicants for assistance as authorized by section 484(g) of 
the HEA (20 U.S.C. 1091(g)); with the DOJ to enforce any requirement 
imposed at the discretion of a court, pursuant to section 5301 of the 
Anti-Drug Abuse Act of 1988, Public Law 100-690, as amended by section 
1002(d) of the Crime Control Act of 1990, Public Law 101-647 (21 U.S.C. 
862), denying Federal benefits under the programs established by title 
IV of the HEA to any individual convicted of a State or Federal offense 
for the distribution or possession of a controlled substance; and with 
the DoD to identify dependents of U.S. military personnel who died in 
service in Iraq and Afghanistan after September 11, 2001, to determine 
if they are eligible for increased amounts of title IV, HEA program 
assistance, pursuant to sections

[[Page 57863]]

420R and 473(b) of the HEA (20 U.S.C. 1070h and 1087mm(b)).
    During CPS processing, the Department's COD System sends 
information to this system for students who have received a Federal 
Pell Grant. The CPS uses this information for verification analysis and 
for end-of-year reporting. These data include, but are not limited to: 
Verification Selection and Status, Potential Over-award Project (POP) 
indicator, Institutional Cost of Attendance, Reporting and Attended 
Campus Pell ID and Enrollment Date, and Federal Pell Grant Program 
information (Scheduled Federal Pell Grant Award, Origination Award 
Amount, Total Accepted Disbursement Amount, Number of Disbursements 
Accepted, Percentage of Eligibility Used At This Attended Campus 
Institution, and Date of Last Activity from the Origination or 
Disbursement table).
    The CPS also receives applicant data from the Department's NSLDS 
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 SAR and ISIR. Title IV, HEA award information 
is provided to NSLDS from several different sources. Federal Perkins 
Loan data and Federal Supplemental Educational Opportunity Grant 
(FSEOG) overpayment data are sent from postsecondary institutions or 
their third-party servicers; the Department's COD System provides 
Federal Pell Grant and Direct Loan data; and State and guaranty 
agencies provide data on FFEL loans received from lending institutions 
participating in the FFEL programs. Financial aid transcript data 
reported by NSLDS provides applicants, postsecondary institutions, and 
third-party servicers with information about the type(s), amount(s), 
dates, and overpayment status of prior and current title IV, HEA funds 
the applicant received. FFEL and William D. Ford Federal Direct Student 
Loan (DL) data reported by NSLDS include, but are not limited to: (1) 
Aggregate Loan Data, such as Subsidized, Unsubsidized; Combined 
Outstanding Principal Balances; Unallocated Consolidated Outstanding 
Principal Balances, Subsidized, Unsubsidized; Combined Pending 
Disbursements, Subsidized, Unsubsidized; Combined Totals; and 
Unallocated Consolidated Totals; (2) Detailed Loan Data, such as Loan 
Sequence Number; Loan Type Code; Loan Change Flag; Loan Program Code; 
Current Status Code and Date; Outstanding Principal Balance and Date; 
Net Loan Amount; Loan Begin and End Dates; Amount and Date of Last 
Disbursement; Guaranty Agency Code; School Code; Contact Code; and 
Institution Type and Grade Level; and (3) system flags for Additional 
Unsubsidized Loan; Capitalized Interest; Defaulted Loan Change; 
Discharged Loan Change; Loan Satisfactory Repayment Change; Active 
Bankruptcy Change; Overpayments Change; Aggregate Loan Change; 
Defaulted Loan; Discharged Loan; Loan Satisfactory Repayment; Active 
Bankruptcy; Additional Loans; DL Master Promissory Note; DL PLUS Loan 
Master Promissory Note; Subsidized Loan Limit; and the Combined Loan 
Limit. Federal Perkins Loan data reported by NSLDS include, but are not 
limited to: Cumulative and Current Year Disbursement Amounts; flags for 
Perkins Loan Change; Defaulted Loan; Discharged Loan; Loan Satisfactory 
Repayment; Active Bankruptcy; Additional Loans; and Perkins Overpayment 
Flag and Contact (School or Region). Federal Pell Grant payment data 
reported include, but are not limited to: Pell Sequence Number; Pell 
Attended School Code; Pell Transaction Number; Last Update Date; 
Scheduled Amount; Award Amount; Amount Paid to Date; Percent Scheduled 
Award Used; Pell Payment EFC; Flags for Pell Verification; and Pell 
Payment Change. Federal Teacher Education Assistance for College and 
Higher Education (TEACH) Grant Program data include, but are not 
limited to: TEACH Grant Overpayment Contact; TEACH Grant Overpayment 
Flag; TEACH Grant Loan Principal Balance; TEACH Grant Total; and Teach 
Grant Change Flag. Iraq and Afghanistan Service Grants data include, 
but are not limited to: Total Award Amount. The Department obtains and 
exchanges information that is included in this system of records from 
postsecondary institutions, third-party servicers, and State agencies. 
These eligible entities register with the SAIG system to participate in 
the information exchanges specified for their business processes.

[FR Doc. 2019-23581 Filed 10-28-19; 8:45 am]
 BILLING CODE 4000-01-P