[Federal Register Volume 88, Number 123 (Wednesday, June 28, 2023)]
[Notices]
[Pages 41934-41942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13697]


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DEPARTMENT OF EDUCATION

[Docket ID ED-FSA-2023-0085]


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 U.S. Department of Education (Department) publishes 
this notice of a modified system of records entitled the ``National 
Student Loan Data System'' (NSLDS) (18-11-06). The information 
contained in this system is maintained for various purposes relating to 
aid applicants and recipients. These include determining aid 
applicants' and recipients' eligibility for Federal student financial 
assistance under the programs authorized by title IV of the Higher 
Education Act of 1965, as amended (HEA); assisting institutions of 
higher education participating in and administering the title IV, HEA 
programs by verifying the eligibility of aid recipients for, and 
tracking, Federal student loans; and assisting 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 July 28, 2023.
    This modified system of records notice will become applicable upon 
publication in the Federal Register on June 28, 2023, unless it needs 
to be changed as a result of public comment. The Department will 
publish any changes to the modified system of records notice resulting 
from public comment.

ADDRESSES: Comments must be submitted via the Federal eRulemaking 
Portal at regulations.gov. However, if you require an accommodation or 
cannot otherwise submit your comments via regulations.gov, please 
contact the program contact listed under FOR FURTHER INFORMATION 
CONTACT. The Department will not accept comments submitted by fax or by 
email, or comments submitted after the comment period closes. To ensure 
that the Department does 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

[[Page 41935]]

on using Regulations.gov, including instructions for accessing agency 
documents, submitting comments, and viewing the docket, is available on 
the site under the ``FAQ'' tab.
    Privacy Note: The Department's policy is to make 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, Partner 
System Integration Division, Program Technical and Business Support, 
Partner Participation and Oversight Directorate, Federal Student Aid, 
U.S. Department of Education, UCP, 830 First St. NE, Room 41F1, 
Washington, DC 20202-5454. Telephone: 202 377 3547. Email: 
[email protected].
    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

    In accordance with the Privacy Act, the Department proposes to 
modify the system of records notice entitled, ``National Student Loan 
Data System (NSLDS)'' (18-11-06), which was last published in full in 
the Federal Register on September 22, 2022 (87 FR 57873).
    The Department is modifying this system of records notice by making 
a global change to delete and replace ``store'' or ``stored'' with 
``maintain'' or ``maintained,'' as applicable, to better align with the 
terminology used in the Privacy Act.
    The Department is modifying this system of records notice by making 
a global change to delete and replace ``borrowers'' with ``aid 
recipients,'' to be more consistent with previous changes.
    The Department is modifying the section entitled ``SYSTEM 
LOCATION'' as follows:
    (i) To update the description of the Amazon Web Services (AWS) from 
a ``computer'' to ``hosting'' center to better align with industry 
terminology; and
    (ii) To update the address of ASM Research from Niagara Falls, NY, 
to Fairfax, VA.
    The Department is modifying the section entitled ``PURPOSE(S) OF 
THE SYSTEM'' relating to applicants and recipients of aid under title 
IV of the HEA as follows:
    (i) Purpose (5) is updated to include approved Prison Education 
Programs (PEPs) (the FAFSA Simplification Act allows for expanding 
access to Federal Pell Grants to include Federal and State penal 
facilities' approved educational programs), and money earned by 
students under the Federal Work-Study (FWS) Program; and
    (ii) Purpose (8) is updated to replace the references to 
``postsecondary institutions'' and ``postsecondary institution'' with 
``postsecondary institutions and programs'' to clarify the Department's 
evaluation of postsecondary institutions' instructional programs for 
effectiveness for use in consumer tools.
    The Department is modifying the section entitled ``PURPOSE(S) OF 
THE SYSTEM'' relating to the institutions of higher education (also 
referred to herein as ``educational institutions'' or ``postsecondary 
institutions'') participating in and administering the title IV, HEA 
programs as follows:
    (i) Purpose (13) is updated to replace the references to 
``postsecondary institutions'' and ``postsecondary institution'' with 
``postsecondary institutions and programs'' to clarify the Department's 
evaluation of postsecondary institutions' instructional programs for 
effectiveness for use in consumer tools; and
    (ii) Purpose (14) is updated to delete and replace ``challenge'' 
with ``ensure the accuracy of'' to clarify the purpose of providing 
data for gainful employment performance metrics.
    The Department is modifying the section entitled ``PURPOSE(S) OF 
THE SYSTEM'' relating to the Department's oversight and administration 
of title IV, HEA programs as follows:
    (i) Purpose (2) is updated to delete and replace ``studies and 
policy development'' with ``analysis and development, and the 
implementation and evaluation of educational policies in relation to 
title IV, HEA programs'';
    (ii) Purpose (9) is updated to clarify that this system assists in 
the calculation of metrics related to other title IV, HEA educational 
programs than just gainful employment programs; and
    (iii) Purpose (17) is added to provide title IV, HEA loan 
information to support the calculation of payment amounts under Income-
Driven Repayment (IDR) plans.
    The Department is modifying the fourth paragraph of the section 
entitled ``CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM'' to 
indicate that the system contains records on aid recipients under the 
FWS Program and the Federal Supplemental Educational Opportunity Grant 
(FSEOG) Program.
    The Department is modifying the section entitled ``CATEGORIES OF 
RECORDS IN THE SYSTEM'' as follows:
    (i) The Department added a new note that explains that the Federal 
Tax Information (FTI) the Department will directly obtain from the 
Internal Revenue Service (IRS) under the Fostering Undergraduate Talent 
by Unlocking Resources for Education (FUTURE) Act will not be 
maintained in this system of records but in a separate system of 
records entitled the ``FUTURE Act System (FAS)'' (18-11-23), for which 
the Department will publish a system of records notice in the Federal 
Register;
    (ii) Category (1) is updated to replace ``driver's license 
information'' with ``driver's license number and State of issuance;''
    (iii) Category (2) is updated to include an incarcerated student 
indicator flag for identification and tracking of aid recipients;
    (iv) Category (4) is updated to clarify that driver's license 
details consist of driver's license number and State of issuance;
    (v) Category (7) is updated to include ``Student Aid Index (SAI),'' 
which corresponds with the new definition as defined in Section 473(a) 
of the HEA, as amended by the FAFSA Simplification Act and the FAFSA 
Simplification Act Technical Corrections Act;
    (vi) Category (8) is updated to add the spouse of an independent 
aid applicant or aid recipient, the parent(s) of a dependent aid 
applicant, and starting with award year 2024-2025, the parents' college 
attendance status;
    (vii) Category (9) is updated to include if the IDR aid applicant 
or aid recipient (or spouse, where applicable), provided consent/
affirmative approval both to redisclose Federal Tax Information (FTI) 
of such individuals pursuant to clauses (iii), (iv), (v), and (vi) of 
section 6103(l)(13)(D) of the Internal Revenue Code (IRC) of 1986 and 
for disclosure under section 494(a) of the HEA (20 U.S.C. 1098h(a)) of 
information to the IRS for the IRS to disclose FTI to the Department as 
part

[[Page 41936]]

of a matching program to determine eligibility for, or repayment 
obligations under, IDR plans under title IV of the HEA with respect to 
loans under part D (Direct Loan program) of title IV of the HEA; to 
include repayment amount; and to delete and replace ``borrower'' with 
``aid recipient'';
    (viii) Category (10) is updated to include FSEOG and for Federal 
Pell Grants, approved PEPs (the FAFSA Simplification Act allows for 
expanding access to Federal Pell Grants to include Federal and State 
penal facilities' approved educational programs) to track aid 
recipients;
    (ix) Category (11) is updated to include earnings amounts under the 
FWS Program to track individuals with FWS; and
    (x) Category (19) is updated to clarify that the system includes 
information provided and generated through customer interactions with 
contact center support via inbound and outbound channels (phone, chat, 
webform, email, customer satisfaction survey, fax, physical mail, and 
digital engagement platforms), including chat transcripts, email 
communications, audio recordings of customer calls, and screen 
recordings of contact center desktop support during customer 
interactions.
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc, or other accessible 
format.
    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.

Richard Cordray,
Chief Operating Officer, Federal Student Aid.

    For the reasons discussed in the preamble, the Chief Operating 
Officer, Federal Student Aid, 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, Partner Systems Integration Division, Program Technical 
and Business Support Group, Partner Management and Support Services, 
Partner Participation and Oversight, Federal Student Aid (FSA), U.S. 
Department of Education, Union Center Plaza (UCP), 830 First St. NE, 
Room 41F1, Washington, DC 20202-5454.
    Amazon Web Services (AWS) Government Cloud, 410 Terry Ave., North 
Seattle, WA 98109-5210. (This is the hosting center for the NSLDS 
application, where all electronic NSLDS information is processed and 
maintained.)
    Accenture, 22451 Shaw Rd., Sterling, VA 20166-4319. (This is 
Accenture's main program office.)
    Accenture DC, 820 First St. NE, Washington, DC 20202-4227. (This 
location is an alternate Accenture work site to support NSLDS.)
    Accenture Federal Services, 10931 Laureate Dr., San Antonio, TX 
78249. (This location is an alternate Accenture work site to support 
NSLDS.)
    NTT Global Data Centers Americas, 44664 Guilford Dr., Ashburn, VA 
20147 and 2008 Lookout Dr., Garland, TX 75044. (NSLDS call recordings 
are maintained at these locations.)
    Oracle Service Cloud, 500 Eldorado Blvd., Broomfield, CO 80021. 
(Provides customer case management and reporting capabilities to NSLDS 
Help Desk Customer Service Representatives (CSRs) and has the 
capability to track and maintain NSLDS inquiries, which allows CSRs to 
respond to these cases/inquiries.)
    The following three listings are the locations of the NSLDS 
Customer Service Centers:
    ASM Research, 4050 Legato Rd., #1100, Fairfax, VA 22033;
    Senture, LLC, 4255 W. Highway 90, Monticello, KY 42633-3398; and
    Veteran Call Center, LLC, 53 Knightsbridge Rd., Suite 216, 
Piscataway, NJ 08854-3925.

SYSTEM MANAGER(S):
    Director, Partner Systems Integration Division, Program Technical 
and Business Support Group, Partner Participation and Oversight 
Directorate, Federal Student Aid, U.S. Department of Education, UCP, 
830 First St. 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), section 431(2) and (3) of the General Education Provisions Act 
(20 U.S.C. 1231a(2)-(3)), and the Higher Education Relief Opportunities 
for Students Act of 2003 (20 U.S.C. 1098bb) (including any waivers or 
modifications that the Secretary of Education deems necessary to make 
to any statutory or regulatory provision applicable to the student 
financial assistance programs under title IV of the HEA to achieve 
specific purposes listed in the section in connection with a war, other 
military operation, or a national emergency). The collection of Social 
Security numbers (SSNs) of individuals 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 applicants and recipients of aid under 
title IV of the HEA:
    (Note: Different parts of the HEA use the terms ``discharge,'' 
``cancellation,'' or ``forgiveness'' to describe when a aid recipient's 
loan amount is reduced in whole or in part by the Department. To reduce 
complexity, this system of records notice uses the term ``discharge'' 
to include all three terms (``discharge,'' ``cancellation,'' and 
``forgiveness''), including, but not limited to, discharges of student 
loans made pursuant to specific benefit programs. At times, the system 
of records notice may refer by name to a specific benefit program, such 
as the ``Public Service Loan Forgiveness'' program; such specific 
references are not intended to exclude any such program benefits from 
more general references to loan discharges.)
    (1) to determine the eligibility of aid applicants and recipients 
for Federal student financial aid programs authorized by title IV of 
the HEA;

[[Page 41937]]

    (2) to report changes in aid applicant and recipient enrollment 
status and enrollment in gainful employment programs;
    (3) to track aid recipients who owe title IV, HEA obligations 
(debtors);
    (4) to maintain information on the status of student loans;
    (5) to maintain information on awards to students under the Federal 
Pell Grant program (including approved Prison Education Programs (PEPs) 
(the FAFSA Simplification Act allows for expanding access to Federal 
Pell Grants to include Federal and State penal facilities' approved 
educational programs), the Academic Competitiveness Grant (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, the Iraq 
and Afghanistan Service Grant program,, and money earned under the 
Federal Work Study (FWS) Program;
    (6) to provide aid recipients and NSLDS users with loan refund and 
discharge details;
    (7) to identify qualifying individuals and inform them about title 
IV, HEA benefits, including total and permanent disability (TPD) 
discharges, Public Service Loan Forgiveness (PSLF), and benefits under 
the Servicemembers Civil Relief Act (SCRA), 50 U.S.C. 3901-4043, to 
streamline the process for applying for loans and benefits, and to 
recoup payments or delinquent debts under the title IV, HEA programs;
    (8) to provide consumer tools to the public to better evaluate the 
effectiveness of postsecondary institutions and programs, considering 
their costs, financial aid, loan repayment rates, completion rates, 
median debts, and the aggregate earnings of title IV, HEA aid 
recipients who were enrolled at postsecondary institutions and programs 
participating in the title IV, HEA programs, so that the public can 
make informed decisions about which postsecondary institutions and 
programs to attend;
    (9) to enable the Department, or other Federal, State, Tribal, or 
local government agencies, to investigate, respond to, or resolve 
complaints concerning the practices or processes of the Department and/
or the Department's contractors, or to investigate, respond to, or 
resolve aid recipients' requests for assistance or relief with regard 
to title IV, HEA program funds;
    (10) to conduct testing, analysis, or take other administrative 
actions needed to prepare for or execute programs under title IV of the 
HEA; and
    (11) to process income eligibility information and documentation 
for aid applicants and recipients, or applicable aid applicants' and 
recipients' parents or spouses, pertaining to the discharge of eligible 
loans under title IV, HEA programs.
    The information in the NSLDS is also maintained for the following 
purposes relating to institutions of higher education (also referred to 
herein as ``educational institutions'' or ``postsecondary 
institutions'') 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 or Pell Grant disbursements;
    (2) to provide student aggregate loan calculations to educational 
institutions;
    (3) to determine default rates for educational institutions, 
guaranty agencies, and lenders;
    (4) to prepare electronic financial aid histories on aid applicants 
and recipients for educational institutions, guaranty agencies, 
Department staff, and Department contractors;
    (5) to alert educational institutions of changes in students' 
financial aid eligibility via the Transfer Student Monitoring process;
    (6) to assist Department staff, Department contractors and agents, 
guaranty agencies, the Department of Justice (DOJ), educational 
institutions, lenders, and servicers in collecting debts arising from 
the receipt of title IV, HEA funds;
    (7) to assess title IV, HEA program activities by guaranty 
agencies, educational institutions, lenders, and servicers;
    (8) to display organizational contact information provided by 
educational institutions, guaranty agencies, lenders, and servicers;
    (9) to provide reporting capabilities for educational institutions, 
guaranty agencies, lenders, and servicers for use in title IV, HEA 
administrative functions and for the Department or other Federal, 
State, Tribal, or local agencies for use in oversight and compliance;
    (10) to provide financial institutions and servicers, Department 
staff, and Department contractors with contact information on loan 
holders for use in the collection of loans;
    (11) to provide educational institutions and servicers with 
information to resolve overpayments of Pell, ACG, National SMART, 
TEACH, Iraq and Afghanistan Service Grants, and FSEOG grants;
    (12) 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 educational institution;
    (13) to provide consumer tools, such as the College Scorecard, 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, HEA aid recipients 
who were enrolled at postsecondary institutions and programs 
participating in the title IV, HEA programs so that prospective 
students can make informed decisions about which postsecondary 
institutions and programs to attend; and
    (14) to provide data for educational institutions to ensure the 
accuracy of 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, analysis and development, and the 
implementation and evaluation of educational policies in relation to 
title IV, HEA programs;
    (3) to conduct budget analysis and program review planning;
    (4) to provide information that supports the Department's 
compliance with the Federal Credit Reform Act of 1990, as amended (CRA) 
(2 U.S.C. 661 et seq.);
    (5) to ensure only authorized users access the NSLDS database and 
to maintain a history of the aid applicant and recipient information 
reviewed;
    (6) to track the Department's interest in loans funded through the 
Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) (Pub. 
L. 110-227);
    (7) to track TEACH grants that have been converted to loans;
    (8) to track eligibility for PSLF;
    (9) to assist in the calculation of metrics related to gainful 
employment and other title IV, HEA educational 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,

[[Page 41938]]

Classification of Instructional Programs (CIP) code, and published 
length of the educational program in which a student is enrolled;
    (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;
    (13) to verify that Federal, State, local, and Tribal statutory, 
regulatory, and program requirements are met by educational and 
financial institutions, Federal Loan Servicers, the Federal Perkins 
Loan Servicer, and guaranty agencies;
    (14) to help governmental entities at the Federal, State, Tribal, 
and local levels exercise their supervisory and administrative powers 
(including, but not limited to, licensure, examination, discipline, 
regulation, or oversight of educational institutions, Department 
contractors, guaranty agencies, eligible lenders, and third-party 
servicers) or to investigate, respond to, or resolve complaints 
regarding the practices or processes of the Department and/or the 
Department's contractors, or to update information or correct errors 
contained in Department records regarding an aid recipient's title IV, 
HEA program funds;
    (15) to provide information to support web-based access to aid 
applicant's and recipient's title IV, HEA program data including 
enrollment;
    (16) to track loan transfers from one holder or servicer to 
another; and
    (17) to provide title IV, HEA loan information to support the 
calculation of monthly payment amounts under Income-Driven Repayment 
(IDR) plans.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system contains records on individual title IV, HEA aid 
applicants and recipients.
    This system also contains information on the parent(s) of a 
dependent aid applicant or recipient and the spouse of a married aid 
applicant or recipient.
    In addition, this system contains records on aid recipients and 
endorsers who received, or signed the promissory note for a loan(s) 
under one of the programs authorized under title IV of the HEA, 
including:
    (1) the William D. Ford Direct Loan Program (Direct Loan) Program, 
including Federal Direct Unsubsidized and Subsidized Stafford/Ford 
Loans, Federal Direct Consolidation Loans, and Federal Direct PLUS 
Loans;
    (2) the Federal Family Education Loan (FFEL) Program,
    (3) the Federal Insured Student Loan (FISL) Program,
    (4) the Federal Perkins Loan Program (including National Defense 
Student Loans, National Direct Student Loans, and Perkins Expanded 
Lending and Income Contingent Loans) (Perkins Loans).
    This system also contains records on aid recipients of Federal Pell 
Grants, ACG, National SMART Grants, TEACH Grants, Iraq and Afghanistan 
Service Grants, the FWS Program, and FSEOGs, as well as on individuals 
who owe an overpayment on a Federal Pell Grant, an ACG, a TEACH Grant, 
a National SMART Grant, a FSEOG, an Iraq and Afghanistan Service Grant, 
or a Federal Perkins Loan.
    Further, this system 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 
Grad and Parent PLUS loans funded through those programs.
    This system also contains records on students who are title IV, HEA 
aid recipients and who attended, or who are attending, a gainful 
employment program at a postsecondary institution.
    Lastly, this system contains records from 2014-2021 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 was 
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 was enrolled, and to determine when a aid 
recipient who enrolled after reaching the 150 percent limit would have 
been responsible for the accruing interest on outstanding Direct 
Subsidized Loans.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Note: The Federal Tax Information (FTI) that the Department will 
obtain directly from the Internal Revenue Service (IRS) under the 
Fostering Undergraduate Talent by Unlocking Resources for Education 
(FUTURE) Act will be maintained in a separate system of records 
entitled the ``FUTURE Act System (FAS)'' (18-11-23);
    Records in the NSLDS include, but are not limited to:
    (1) aid applicant and recipient identifier information, including 
SSN, name, date of birth, physical address, phone number, email 
address, and driver's license number and State of issuance;
    (2) aid applicant demographic information, including an aid 
applicant's parent's and spouse's demographic information (if 
applicable), student enrollment, incarcerated student indicator flag, 
list of participating title IV, HEA institutions of higher education 
selected by the aid applicant to receive the Free Application for 
Federal Student Aid (FAFSA[supreg]) data along with residency plans, 
and the financial profile of an applicant and an aid applicant's 
parent(s) or spouse, as reported and calculated through the FAFSA form; 
and processing flags, indicators, rejections, and overrides;
    (3) information on the aid recipient's loan(s) covering the period 
from the origination of the loan through final payment, 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 discharges;
    (4) information on an aid applicant's or recipient's endorser or 
co-signer of a PLUS loan application from the origination of the loan 
through final payment, consolidation, discharge, or other final 
disposition, including details such as co-signer SSN, name, date of 
birth, driver's license number and State of issuance (if reported), 
active-duty status (if applicable and reported), email address, 
address, phone number, and relevant loan information with respect to 
the loan on which they are the endorser or co-signer;
    (5) 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 (OPE ID 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;
    (6) aggregated income information on graduates and non-completers 
of a particular gainful employment program, and the median loan debt 
incurred by students enrolled in the gainful employment program, 
regardless of whether they completed the program;
    (7) student demographic information, such as dependency status, 
citizenship, veteran status, marital status, gender,

[[Page 41939]]

income and asset information (including income and asset information on 
the student's spouse, if married), and expected family contribution or 
Student Aid Index (SAI);
    (8) information on the parent(s) of a dependent aid applicant or 
aid recipient or the spouse of an independent aid applicant or aid 
recipient, including name, date of birth, SSN, marital status, email 
address, highest level of schooling completed and starting with award 
year 2024-2025, the parents' college attendance status, and income and 
asset information;
    (9) information related to an aid applicant's or recipient's 
application for title IV, HEA benefits, including information relating 
to IDR or PSLF eligibility such as current income; family size; 
repayment plan selections; employer name; dates of employment; 
employment status; if the IDR aid applicant or aid recipient (or 
spouse, where applicable), provided consent/affirmative approval both 
to redisclose Federal Tax Information (FTI) of such individuals 
pursuant to clauses (iii), (iv), (v), and (vi) of section 
6103(l)(13)(D) of the Internal Revenue Code (IRC) of 1986 and under 
subsection 494(a) of the HEA (20 U.S.C. 1098h(a)) of information to the 
IRS for the IRS to disclose FTI to the Department as part of a matching 
program to determine eligibility for, or repayment obligations under, 
IDR plans under title IV of the HEA with respect to loans under part D 
(Direct Loan program) of title IV of the HEA; repayment amount; and 
information about the aid recipient's spouse, if the aid applicant or 
recipient is married;
    (10) Federal Pell Grant, FSEOG, ACG Grant, National SMART Grant, 
TEACH Grant, and Iraq and Afghanistan Service Grant amounts, dates of 
disbursement, and for Federal Pell Grants, approved PEPs (the FAFSA 
Simplification Act allows for expanding access to Federal Pell Grants 
to include Federal and State penal facilities' approved educational 
programs);
    (11) Federal Pell Grant, ACG Grant, National SMART Grant, TEACH 
Grant, Iraq and Afghanistan Service Grant, FSEOG, Federal Perkins Loan 
Program overpayment amounts and/or earning amounts under the FWS 
Program;
    (12) Information maintained by a guaranty agency, including, 
demographic, contact, and identifier information, a aid applicant's 
FFEL loan(s), and the lender(s), holder(s), and servicer(s) of the 
borrower's FFEL loan(s);
    (13) NSLDS user profiles that include name, SSN, date of birth, 
employer, and NSLDS username;
    (14) 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;
    (15) pre- and post-screening results used to determine a student's 
or parent's aid eligibility;
    (16) 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;
    (17) 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;
    (18) information obtained pursuant to matching programs or other 
information exchanges with Federal and State agencies and other 
administrators of Federal funds and programs to assist in identifying 
individuals who may be eligible for aid applicant's or recipient's 
benefits related to their title IV, HEA loans or other title IV, HEA 
obligations, including TPD discharges, loan deferments, interest rate 
reductions, PSLF, and other Federal and State loan repayment or 
discharge benefits, or for the purpose of recouping payments or 
delinquent debts under title IV, HEA programs; and
    (19) Information provided and generated through customer 
interactions with contact center support via inbound and outbound 
channels (phone, chat, webform, email, customer satisfaction survey, 
fax, physical mail, and digital engagement platforms). Information 
includes, but is not limited to: chat transcripts, email 
communications, audio recordings of customer calls, and screen 
recordings of contact center desktop support during customer 
interactions.

RECORD SOURCE CATEGORIES:
    Information is obtained from other Federal, State, local, and 
Tribal agencies, other administrators of Federal funds and programs, 
guaranty agencies, educational institutions, financial institutions and 
servicers, aid applicants and recipients, parents and spouses of 
applicable aid applicants and recipients, and designated co-signers and 
endorsers.
    Information is also obtained from other Department systems, or 
their successor 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 all systems covered by the system of 
records entitled ``Aid Awareness and Application Processing.'' 
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 aid recipients' current loan status, the Department may disclose 
records to

[[Page 41940]]

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 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 aid recipients, 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 
discharges 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 DOJ and private counsel 
retained by the DOJ, and to other Federal, State, local, or Tribal 
agencies;
    (n) To assist the Department in tracking loans funded under ECASLA, 
the Department may disclose records to Federal agencies;
    (o) 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; and
    (p) To help Federal, State, Tribal, and local governmental entities 
exercise their supervisory and administrative powers (including 
licensure, examination, discipline, regulation, or oversight of 
educational institutions, Department contractors, guaranty agencies, 
eligible lenders, and third-party servicers) or to investigate, respond 
to, or resolve complaints submitted regarding the practices or 
processes of the Department and/or the Department's contractors, the 
Department may disclose records to governmental entities at the 
Federal, State, Tribal, and local levels. These records may include all 
aspects of records relating to loans and grants made under title IV of 
the HEA, to permit these governmental entities to verify compliance 
with debt collection, consumer protection, financial, and other 
applicable statutory, regulatory, or local requirements. Before making 
a disclosure to these Federal, State, local, or Tribal governmental 
entities, the Department will require them to maintain safeguards 
consistent with the Privacy Act to protect the security and 
confidentiality of the disclosed records.
    (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, 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 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

[[Page 41941]]

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 and on behalf 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 or their Agents or 
Contractors, Professional Organizations, or the Department's 
Contractors. The Department may disclose a record to a Federal, State, 
local, Tribal or other public agency or an agent or contractor of such 
a public agency, a professional organization, or a Department 
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.
    (14) Disclosure to the National Archives and Records Administration 
(NARA). The Department may disclose records from this system of records 
to NARA for the purpose of records management inspections conducted 
under the authority of 44 U.S.C. 2904 and 2906.

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 maintained electronically.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    In order for users to retrieve aid applicant or recipient 
information, they must supply the respective SSN, name, and date of 
birth.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records are primarily retained and disposed of in accordance with 
ED Records Schedule 051: FSA National Student Loan Data System (NSLDS) 
(DAA-0441-2017-0004) (ED 051). The Department has submitted amendments 
to ED 051 for NARA's consideration and will not destroy records covered 
by ED 051 until such amendments are in effect, as applicable.

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 Department employees 
and officials, financial and fiscal management personnel, computer 
personnel, and program managers who have responsibilities for 
implementing the NSLDS program. Read-only users:

[[Page 41942]]

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 maintained 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.
    In accordance with the Federal Information Security Management Act 
of 2002 (FISMA), as amended by the Federal Information Security 
Modernization Act of 2014, every Department system must receive a 
signed Authorization to Operate (ATO) from a designated Department 
official. The ATO process includes a rigorous assessment of security 
controls, a plan of actions and milestones to remediate any identified 
deficiencies, and a continuous monitoring program.
    FISMA controls implemented are comprised of a combination of 
management, operational, and technical controls, and include the 
following control families: access control, awareness and training, 
audit and accountability, security assessment and authorization, 
configuration management, contingency planning, identification and 
authentication, incident response, maintenance, media protection, 
physical and environmental protection, planning, personnel security, 
privacy, risk assessment, system and services acquisition, system and 
communications protection, system and information integrity, and 
program management.

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 the ``National Student Loan Data 
System'' (18-11-06) was last modified and published in full on 
September 22, 2022 (87 FR 57873).

[FR Doc. 2023-13697 Filed 6-27-23; 8:45 am]
BILLING CODE 4000-01-P