[Federal Register Volume 88, Number 124 (Thursday, June 29, 2023)]
[Notices]
[Pages 42220-42226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13980]
[[Page 42219]]
Vol. 88
Thursday,
No. 124
June 29, 2023
Part IV
Department of Education
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Privacy Act of 1974; System of Records; Notice
Federal Register / Vol. 88, No. 124 / Thursday, June 29, 2023 /
Notices
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DEPARTMENT OF EDUCATION
[Docket ID ED-2023-FSA-0113]
Privacy Act of 1974; System of Records
AGENCY: Federal Student Aid, U.S. Department of Education.
ACTION: Notice of a new system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended
(Privacy Act), the U.S. Department of Education (Department) publishes
this notice of a new system of records titled ``FUTURE Act System
(FAS)'' (18-11-23). The Fostering Undergraduate Talent by Unlocking
Resources for Education (FUTURE Act) amended the Internal Revenue Code
(IRC) to authorize the U.S. Department of the Treasury, Internal
Revenue Service (IRS), to disclose to the Department certain Federal
tax information (FTI) of an individual, upon approval being provided by
the individual to the Department, for the purpose of determining
eligibility for, or repayment obligations under, Income-Driven
Repayment (IDR) plans under title IV of the Higher Education Act of
1965, as amended (HEA), with respect to loans under part D of title IV
of the HEA, and determining eligibility for, and amount of Federal
student financial aid under, a program authorized under subpart 1 of
part A, part C, or part D of title IV of the HEA. The Department and
the IRS have entered into a computer matching agreement (CMA) pursuant
to which the IRS will disclose FTI to the Department, to maintain and
secure the FTI obtained in this system.
DATES: Submit your comments on this new system of records notice on or
before July 31, 2023.
This new system of records notice will become applicable upon
publication in the Federal Register on June 29, 2023, unless it needs
to be changed as a result of public comment, except for the routine
uses. The routine uses, listed in the section titled ``ROUTINE USES OF
RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND
PURPOSES OF SUCH USES,'' will become effective on July 31, 2023, unless
they need to be changed as a result of public comment. The Department
will publish any significant changes to the new system of records
notice or routine uses 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 person 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 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 all comments
received from members of the public available for public viewing in
their entirety on the Federal eRulemaking Portal at
www.regulations.gov. Therefore, commenters should be careful to include
in their comments only information that they wish to make publicly
available.
Assistance to Individuals with Disabilities in Reviewing the
Rulemaking Record: On request, we will provide an appropriate
accommodation or auxiliary aid to an individual with a disability who
needs assistance to review the comments or other documents in the
public rulemaking record for this notice. If you want to schedule an
appointment for this type of accommodation or aid, please contact the
program contact person listed under FOR FURTHER INFORMATION CONTACT.
FOR FURTHER INFORMATION CONTACT: Pardu Ponnapalli, Technology
Directorate, Federal Student Aid, U.S. Department of Education, Union
Center Plaza, 830 First Street NE, Washington, DC 20202-5454.
Telephone: 202-377-4006. 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, toll free, at
1-800-877-8339.
SUPPLEMENTARY INFORMATION:
Introduction
The FAS provides a confined platform consisting of three specific
FSA information technology systems (namely, the FTI Module, FTI
Datamart, and FTI Student Aid internet Gateway (SAIG), described in
greater detail below), within which the Department uses and maintains
FTI that the Department receives from the IRS in accordance with the
IRC, including sections 6103(l)(13)(A), (C), and(D) therein.
The FAS allows the Department to: (1) enhance the Free Application
for Federal Student Aid (FAFSA[supreg])experience by enabling the
Department to obtain FTI from the IRS for each applicant, parent, or
spouse who provides approval for the purposes set forth in section
6103(l)(13)(C) of the IRC; (2) improve program integrity for Income
Driven Repayment (IDR) plans by enabling the Department to obtain FTI
faster, and in a secure manner, from the IRS for individuals who
provide approval for the purposes set forth in section 6103(l)(13)(A)
and (C) of the IRC; and (3) provide an improved experience to
applicable aid applicants and aid recipients, along with their spouses
and parents, through the establishment of a matching program between
the IRS and the Department.
To the extent that the Department determines it to be required by
law or essential to the conduct of its matching program with the IRS,
the Department may also use the FTI that the IRS discloses to the
Department for the foregoing purposes for the following additional
purposes permitted by section 6103(l)(13)(D)(i) of the IRC: (a)
reducing the net cost of improper payments: (i) under IDR plans, and
(ii) relating to awards of Federal student financial aid under a
program authorized under subpart 1 of part A, part C, or part D of
title IV of the HEA; (b) the Department's OIG's oversight activities as
authorized by chapter 4 of title 5 of the United States Code, except
for the purpose of conducting criminal investigations or prosecutions;
and (c) conducting analyses and forecasts for estimating costs related
to: (i) IDR plans, and (ii) awards of Federal student financial aid
under a program authorized under subpart 1 of part A, part C, or part D
of title IV of the HEA. This will improve the Department's
administration of programs authorized under title IV of the HEA by
enhancing the FAFSA verification experience and eliminating multi-year
certification for IDR plan applicants and aid recipients, which
simplifies both online application experiences and prevents many aid
recipients from defaulting on their Federal student loans.
The three FSA information technology systems comprising the FAS are
as follows:
(i) FTI Module--The FTI Module is a centralized and secured
platform that interfaces with the IRS to collect and maintain FTI via a
matching program. It also serves as a database that contains
[[Page 42221]]
FTI where authorized Department users can view FTI and perform all FTI-
related business functions. The FTI Module also houses the non-FTI
information (e.g., last name, SSN/TIN, unique identifier, consent/
affirmative approval information, date, and time stamp) needed to
engage in the applicable matching program. In particular, the
Department uses the FTI Module to perform calculations required for the
Department to determine eligibility for, and amount of, Federal student
financial aid under subpart 1 of part A, part C, or part D of title IV
of the HEA, and eligibility for, and repayment obligations under, IDR
plans with respect to loans under part D of title IV of the HEA, as
permitted under sections 6103(l)(13)(A) and (C) of the IRC. More
specifically, the Department uses the FTI Module to calculate the
Student Aid Index (SAI), verify financial information, conduct
eligibility determination checks, and calculate the IDR plan monthly
payment amount. Further, the. The FTI Module produces outputs to FSA
systems outside of the FTI Module's boundary that address those
systems' required business needs, as permitted by applicable law and in
a manner that complies with IRS Publication 1075, ``Tax Information
Security Guidelines for Federal, State, and Local Agencies.'' For
example, the SAI calculation that is derived from FTI within the FTI
Module boundary is transmitted to the FAFSA Processing System (FPS)
covered by the Department's system of records notice entitled ``Aid
Awareness and Application Processing'' (18-11-21). In addition, to
determine eligibility requirements for loan repayment plans, the FTI
Module calculates a monthly loan payment amount derived from FTI which
is then transmitted to the Common Origination and Disbursement (COD)
System covered by the Department's system of records notice entitled
``Common Origination and Disbursement (COD)System'' (18-11-02);
(ii) FTI Datamart--The FTI Datamart is a secure data warehouse that
contains FTI maintained by the Department and utilizes analytics
frameworks to support data analytics, budget service, and auditing
analysis. A set of analytical tools included in the FTI Datamart
provides users the ability to analyze data based on the users' needs
and to the extent such analysis is authorized by sections
6103(l)(13)(D)(i)(I) through (III) of the IRC; and
(iii) FTI SAIG--The FTI SAIG is used for title IV, HEA data
transmissions that contain FTI, as permitted by section
6103(l)(13)(D)(iii) of the IRC and provided the Department has obtained
the written consent of the taxpayer, to certain institutions of higher
education (IHE),IHEs) State higher education agencies, and certain
scholarship organizations solely for use in the application, award, and
administration of financial aid awarded by the Federal government, by
an IHE that participates in a program under subpart 1 of part A, part
C, or part D of title IV of the HEA, by a State higher education
agency, or by a scholarship organization designated by the Secretary of
Education prior to December 19, 2019, under section 483(a)(3)(E) of the
HEA.
Additionally, the FTI SAIG allows users the ability to send and
receive files while maintaining complete compliance with applicable law
and the requirements of IRS Publication 1075 regarding the transfer and
storage of FTI.
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 U.S. Department of
Education (Department or ED) publishes a notice of a new system of
records to read as follows:
SYSTEM NAME AND NUMBER:
FUTURE Act System (FAS) (18-11-23).
SECURITY CLASSIFICATION:
Unclassified.
SYSTEM LOCATION:
Amazon Web Services (AWS) GovCloud West-1, 875 Howard Street, San
Francisco, CA 94103-3009. (AWS GovCloud hosts the infrastructure that
supports the FAS.) Federal Student Aid (FSA), U.S. Department of
Education, Union Center Plaza, 830 First Street NE, Washington, DC
20202-5454.
SYSTEM MANAGER(S):
FUTURE Act System Manager, Technology Directorate, Federal Student
Aid (FSA), U.S. Department of Education, Union Center Plaza, 830 First
Street NE, Washington, DC 20202-5454.
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.); section 141(f) of the HEA (20 U.S.C. 1018(f)),
and 6103(1)(13) and p(4) of the IRC and IRS Publication 1075 Tax
Security Guidelines for Federal, State, and Local Agencies. The
collection of Social Security numbers (SSNs) and Taxpayer
Identification numbers (TINs) of individuals (including parents of
dependent applicants and spouse(s) of independent applicants), who
apply for or receive Federal student financial assistance under
programs authorized by title IV of the HEA 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
following purposes related to aid applicants and recipients under title
IV of the HEA:
(1) To provide an aid applicant's or aid recipient's financial aid
history to aid applicants or aid recipients, IHEs, Tribes, and Federal,
State higher education agencies, or local agencies, and third-party
servicers;
(2) To assess the administration of title IV, HEA program funds;
(3) To identify, recoup, and prevent improper payments in title IV,
HEA programs;
(4) To help Federal, State, Tribal and local government agencies
exercise their supervisory and administration powers (including, but
not limited to licensure, examination, discipline, regulation, or
oversight of IHEs, Department contractors, guaranty agencies, lenders
and loan holders, and third-party servicers);
(5) To respond to aid applicant or aid recipient complaints
submitted
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regarding the practices or processes of the Department and/or the
Department's contractor;
(6) To update information and correct errors contained in
Department records regarding the aid applicant's or aid recipient's
title IV, HEA program funds;
(7) To support the investigation of possible fraud and abuse and
detect and prevent fraud and abuse in title IV, HEA program funds;
(8) To determine an applicant's eligibility for the award of aid
under title IV of the HEA, State postsecondary education assistance,
and aid by eligible IHEs or other entities that have been designated by
the Secretary, as currently permitted by Section 483(a)(3)(E) of the
HEA (20 U.S.C. 1090(a)(3)(E)), and to administer those awards.
Pursuant to sections 6103(l)(13)(A) and (C) of the Internal Revenue
Code (IRC) the Department will use the Federal tax information (FTI)
disclosed to the Department by the U.S. Department of the Treasury,
Internal Revenue Service (IRS), that the Department maintains in this
system for the purpose of determining eligibility for, or repayment
obligations under, Income-Driven Repayment (IDR) plans under title IV
of the HEA, with respect to loans under part D of title IV of the HEA;
and determining eligibility for, and amount of Federal student
financial aid under, a program authorized under subpart 1 of part A,
part C, or part D of title IV of the HEA.
To the extent that the Department determines it to be required by
law or essential to the conduct of its matching program with the IRS,
the Department may also use the FTI that the Department maintains in
this system for the foregoing purposes for the following additional
purposes permitted by section 6103(l)(13)(D)(i) of the IRC:
(1) reducing the net cost of improper payments:
(a) under IDR plans, and
(b) relating to awards of Federal student financial aid under a
program authorized under subpart 1 of part A, part C, or part D of
title IV of the HEA;
(2) the Department's Office of Inspector General's (OIG's)
oversight activities as authorized by chapter 4 of title 5 of the
United States Code, except for the purpose of conducting criminal
investigations or prosecutions; and (3) conducting analyses and
forecasts for estimating costs related to:
(a) IDR plans, and
(b) awards of Federal student financial aid under subpart 1 of part
A, part C, or part D of title IV of the HEA.
The Department also uses the FTI that the Department maintains in
this system to produce a Student Aid Report (SAR)/FAFSA Submission
Summary (FSS), Institutional Student Information Record (ISIR) and, as
permitted by section 6103(l)(13)(D)(iii) of the IRC and provided the
Department has obtained the applicable individual's written consent, to
distribute the ISIR to authorized institutions of higher education
(IHEs), State higher education agencies, and certain scholarship
organizations solely for the use in the application, award, and
administration of financial aid awarded by the Federal Government, by
an IHE that participates in a program under subpart 1 of part A, part
C, or part D of title IV of the HEA, by a State higher education
agency, or by a scholarship organization designated by the Secretary of
Education prior to December 19, 2019, under section 483(a)(3)(E) of the
HEA.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
This system of records maintains records on aid applicants, aid
recipients, and participants (i.e., parent(s) of dependent applicants
and spouse(s) of independent applicants) who apply for repayment of
their obligations under IDR plans under title IV of the HEA with
respect to loans under part D of title IV of the HEA, or who apply for
Federal student financial aid under a program authorized under subpart
1 of part A, part C, or part D of title IV of the HEA.
CATEGORIES OF RECORDS IN THE SYSTEM:
This system of records maintains information provided by aid
applicants for and aid recipients, or participants (as defined above)
of, title IV, HEA program assistance on the Free Application for
Federal Student Aid (FAFSA[supreg]) including, but not limited to, the
applicant's last name, date of birth, SSN and/or TIN, unique
identifier, consent/affirmative approval information, and the date/time
stamp of the consent/affirmative approval provided for the purposes set
forth in section 6103(l)(13)(C) of the IRC, clauses (iii), (iv), (v),
and (vi) of section 6103(l)(13)(D) of the IRC, and under section 494(a)
of the HEA (20 U.S.C. 1098h(a)). This system also maintains similar
information provided about participants (as defined above) on the
FAFSA. For an aid applicant or aid recipient who is married, this
system of records also maintains spousal income and asset information.
For an aid applicant or aid recipient who is a dependent student, this
system of record maintains their income and asset information as well
as the income and asset information of their parent(s).
In addition, this system maintains data related to FTI transmission
processing, such as when FTI batch data was transmitted and received by
the FTI SAIG.
This system also maintains the following data on IDR applicants and
their spouses, if applicable, to calculate and produce the output
calculation of the monthly repayment amount for IDR-related plans: the
applicant's last name, date of birth, SSN and/or TIN, and unique
identifier, and the consent/affirmative approval including date/time
stamp provided for the purposes set forth in section 6103(l)(13)(A) of
the IRC, clauses (iii), (iv), (v), and (vi) of section 6103(l)(13)(D)
of the IRC, and under section 494(a) of the HEA (20 U.S.C. 1098h(a)).
Further, this system maintains the following FTI to determine
eligibility for, and amount of, Federal student financial aid under a
program authorized under subpart 1 of part A, part C, or part D of
title IV of the HEA: SSA/TIN; tax year; last name; filing status code;
adjusted gross income (AGI) amount; total number of tax exemptions;
total number of dependents; income earned from work (sum of wages, farm
income, Schedule C income); total amount of income tax paid; total
allowable education tax credits; sum of untaxed IRA contributions and
other payments to qualified plans; tax-exempt interest received; sum of
untaxed pensions and annuities; net profit/loss from Schedule C; and
indicator of filing for Schedules A, B, D, E, F, and H. This FTI will
be used to generate a Student Aid Index (SAI), which will also be
maintained in this system.
This system maintains the following FTI to determine eligibility
for, or repayment of obligations under, IDR plans under title IV of the
HEA with respect to loans under part D of title IV of the HEA: SSN/TIN,
tax year; last name; filing status code; AGI amount; total number of
exemptions; and total number of dependents. This FTI will be used to
calculate monthly payment amounts, which will also be maintained in
this system.
Note: With the consent/affirmative approval of the applicants,
an ISIR will be provided to the IHEs identified on the applicant's
FAFSA indicating the applicant's SAI, application results, whether
there is discrepant or insufficient data, or FPS assumptions that
affect FAFSA processing. The SAI will be used by IHEs to determine
the student's eligibility for Federal and institutional program
assistance, by State higher education agencies to determine the
student's eligibility for State aid, and, if provided by the aid
applicant or aid recipient, the Bureau of Indian Affairs (BIA) for
tribal assistance.
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RECORD SOURCE CATEGORIES:
Information maintained in this system is obtained from aid
applicants or aid recipients, the parent(s) of dependent aid applicants
or aid recipients (for FAFSA purposes only), and the spouse(s) of
independent aid applicants or aid recipients for title IV, HEA program
assistance; the authorized employees or representatives of IHEs,
institutional third-party servicers, and State higher education
agencies; and other persons or entities from which information is
disclosed following a disclosure of records under the routine uses set
forth below.
This system maintains information added during FTI processing and
receives information from other Department information technology
systems or their successor systems, such as the National Student Loan
Data System (NSLDS) (covered by the Department's system of records
notice entitled ``National Student Loan Data System (NSLDS)'' (18-11-
06)); Common Origination and Disbursement (COD) System (covered by the
Department's system of records notice entitled ``Common Origination and
Disbursement (COD) System'' (18-11-02); Enterprise Data Management and
Analytics Platform Services (EDMAPS) (covered by the Department's
system of records notice entitled ``Enterprise Data Management and
Analytics Platform Services'' (18-11-22)); Person Authentication
Service (PAS) (covered by the Department's system of records notice
entitled ``Person Authentication Service (PAS)'' (18-11-12));
Postsecondary Education Participants System (PEPS) (covered by the
Department's system of records notice entitled ``Postsecondary
Education Participants System (PEPS)'' (18-11-09)); and all information
technology systems covered by the Department's system of records
entitled ``Aid Awareness and Application Processing'' (18-11-21).
Information maintained in this system is also obtained through a
matching program with the IRS.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND PURPOSES OF SUCH USES:
The Department may disclose information maintained 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
computer matching agreement that meets the requirements of the Privacy
Act of 1974, as amended (Privacy Act) (5 U.S.C. 552a). However, any FTI
maintained in a record in this system of records may only be disclosed
without the consent of the individual under the routine uses listed in
this system of records notice if the disclosure is compatible with the
purposes for which the record was collected and if the disclosure is
permissible under section 6103(l)(13) of the IRC. Section 483(a)(3)(E)
of the HEA, which will be in effect until June 30, 2024, also restricts
the use of the information collected by the electronic FAFSA to the
application, award, and administration of aid awarded under title IV of
the HEA or of aid awarded by States, eligible IHEs, or such entities as
the Secretary of Education may designate. Thus, until July 1, 2024, any
such FAFSA information may only be disclosed under the routine uses
listed in this system of records notice if the disclosure is compatible
with the purposes for which the record was collected and if the
disclosure is for the application, award, and administration of aid
awarded under title IV of the HEA or of aid awarded by States, eligible
IHEs, or such entities as the Secretary of Education may designate.
Program Disclosures. The Department may disclose records from this
system of records for the following program purposes:
(a) To provide an aid applicant's or aid recipient's financial aid
history, the Department may disclose records to IHEs, Tribes, and
Federal, State higher education agencies, or local agencies, and third-
party servicers;
(b) To facilitate receiving application and recertification
information, calculating IDR plans monthly payment amounts, and
calculating SAI, the Department may disclose records to IHEs, and
Federal, State higher education agencies, or local agencies, Tribes,
and third-party servicers;
(c) To assist the Department in assessing the administration of
title IV, HEA program funds, the Department may disclose records to
IHEs, third-party servicers, and Federal and State agencies;
(d) To support the Department in identifying, preventing, and
recouping, improper payments in title IV, HEA programs, the Department
may disclose records to IHEs, third-party servicers, Tribes, and
Federal, State, or local agencies, State higher education agencies, and
fiscal/financial agent designated by the U.S. Department of Treasury
include employees, agents, or contractors of such agent;
(e) To help Federal, State, Tribal, and local governmental agencies
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 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;
(f) To support the investigation of possible fraud and abuse and to
detect and prevent fraud and abuse in title IV, HEA program funds, the
Department may disclose records to IHEs, third-party servicers, Tribal,
and Federal, State, or local agencies; and
(g) To determine an aid applicant's eligibility for the award of
aid under title IV of the HEA, and to assist with the awarding and
administration of aid, State postsecondary education assistance, and
aid by eligible IHEs or other entities designated by the Secretary of
Education and to administer those awards, the Department may disclose
records to State agencies, eligible IHEs, third-party servicers,
Tribal, Federal, State, or local agencies, and other entities that
award aid to students that have been designated by the Secretary of
Education.
(2) Enforcement Disclosure. If information in this system of
records indicates, either on its face or in connection with other
information, a violation or potential violation of any applicable
statute, regulation, or order of a competent authority, the Department
may disclose the relevant records to the appropriate agency, whether
Federal, State, Tribal, or local, charged with investigating or
prosecuting that violation or charged with enforcing or implementing
the statute, regulation, or order issued pursuant thereto.
(3) Litigation and Alternative Dispute Resolution (ADR) Disclosure.
[[Page 42224]]
(a) Introduction. In the event that one of the parties listed in
sub-paragraphs (i) through (v) is involved in judicial or
administrative litigation or ADR, or has an interest in judicial or
administrative litigation or ADR, the Department may disclose certain
records 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 their official capacity;
(iii) Any Department employee in their individual capacity where
the U.S. Department of Justice (DOJ) agrees to or has been requested to
provide or arrange for representation of the employee;
(iv) Any Department employee in their 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
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) 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 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, Tribal, or local agency or to another
public authority or professional organization, maintaining civil,
criminal, or other relevant enforcement or other pertinent records, if
necessary to obtain information relevant to a Department decision
concerning the hiring or retention of an employee or other personnel
action, the issuance of a security clearance, the letting of a
contract, or the issuance of a license, grant, or other benefit.
(b) For Decisions by Other Public Agencies and Professional
Organizations. The Department may disclose a record to a Federal,
State, Tribal, 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 authorized and
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 in the Course of Responding to a 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, programs, and operations), the Federal Government,
or national security; and (c) the disclosure made to such agencies,
entities, and persons is reasonably necessary to assist in connection
with the Department's efforts to respond to the suspected or confirmed
breach or to prevent, minimize, or remedy such harm.
(14) Disclosure in Assisting another Agency in Responding to a
Breach of Data. The Department may disclose records from this system to
another Federal agency or Federal entity, when the Department
determines that information from this system of records is reasonably
necessary to assist the recipient agency or entity in (a) responding to
a suspected or confirmed breach or (b) preventing, minimizing, or
remedying the risk of harm to individuals, the recipient agency or
entity (including its information systems, programs, and operations),
the
[[Page 42225]]
Federal Government, or national security, resulting from a suspected or
confirmed breach.
(15) 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, TIN, 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 15 U.S.C. 1681a(f) and 31
U.S.C. 3701(a)(3).
POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
Electronic applicant records, which may include optically imaged
documents, are stored on Direct Access Storage Device (DASD) disks in a
virtual disk library, in the computer facilities controlled by the
Federal Student Aid Data Center.
POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
Records in this system pertaining to a title IV, HEA loan aid
applicant or aid recipient are indexed and retrieved by a single
information element or a combination of the following information
elements: SSN/TIN, name, date of birth, and/or the academic year in
which the aid applicant applied for title IV, HEA program assistance.
POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
Records that constitute FTI that are maintained in this system are
primarily retained and disposed of in accordance with the following
records schedules:
(a) The Department will maintain FTI that the Department receives
from the IRS pursuant to section 6103(l)(13)(A) of the IRC for the
purpose of determining eligibility for, or repayment obligations under,
IDR plans under title IV of the HEA with respect to loans under part D
of title IV of the HEA, in accordance with ED Records Schedule 072,
``FSA Application, Origination, and Disbursement Records'' (DAA-0441-
2013-0002)(ED 072); ED Records Schedule 075, ``FSA Loan Servicing,
Consolidation, and Collections Records'' (DAA-N1-441-09-016) (ED 075);
and ED Records Schedule 051, ``FSA National Student Loan Data
System(NSLDS)'' (DAA-0441-2017-0004) (ED 051). The Department has
proposed amendments to ED 072, ED 051, and ED 075 for NARA's
consideration and will not destroy records covered by these records
schedules until such amendments are in effect, as applicable;
(b) The Department will maintain FTI that the Department receives
from the IRS pursuant to sections 6103(l)(13)(A) and/or (C) of the IRC
that the Department uses for the purpose of reducing the net cost of
improper payments under such IDR plans and relating to such awards, and
pursuant to section 6103(l)(13)(C) of the IRC for the purpose of
determining eligibility for, and amount of, Federal student financial
aid under the programs authorized under subpart 1 of part A, part C, or
part D of title IV of the HEA in accordance with ED Records Schedule
052, ``Ombudsman Case Files'' (N1-441-09-21) (ED 052). The Department
has proposed amendments to ED 052 for NARA's consideration and will not
destroy records covered by this records schedules until such amendments
are in effect, as applicable;
(c) The Department will maintain FTI that the Department receives
from the IRS pursuant to sections 6103(l)(13)(A) and/or (C) of the IRC
that the Department uses for the purpose of oversight by the
Department's OIG as authorized by chapter 4 of title 5 of the United
States Code, except for the purpose of conducting criminal
investigations or prosecutions, in accordance with OIG ``Office of
Inspector General Simplified Records Schedule'' (DAA-0441-2021-0001);
and
(d) The Department will maintain FTI that the Department receives
from the IRS pursuant to IRC sections 6103(l)(13)(A) and/or (C) of the
IRC that the Department uses for the purpose of conducting analyses and
forecasts for estimating costs related to IDR plans and/or awards of
Federal student financial aid under the Pell Grant, FWS or Direct Loan,
programs authorized under subpart 1 of part A, part C, or part D of
title IV of the HEA in accordance with ED Records Schedule 057,
``Office of the Secretary, Deputy Secretary and Under Secretary,''
(DAA-441-97-1) (ED 057), item 16a; and General Records Schedule 1.3,
``Budgeting Records,'' items 040 and 041. The Department proposed
amendments to ED 057 for NARA's consideration and will not destroy
records covered by this records schedule until such amendments are in
effect, as applicable.
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
All users of the 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 their 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 system are recorded.
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
and privacy 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. The Department will maintain all FTI obtained from
the matching program in accordance with section6103(p)(4) of the IRC
and comply with the safeguards requirements set forth in IRS
Publication 1075, Tax Information Security Guidelines for Federal,
State, and Local Agencies, which is the IRS published guidance for
security guidelines and other safeguards
[[Page 42226]]
for protecting FTI pursuant to section6103(p)(4) of the IRC and 26 CFR
301.6103(p)(4)-1.
RECORD ACCESS PROCEDURES:
If you wish to gain access to a record in this system, FAFSA
applicants and contributors are encouraged to contact their IHE
financial aid administrators to access their record most efficiently.
IDR applicants, and those recertifying their IDR benefits, may access
their non-FTI information by contacting their Federal student loan
servicer. Either set of individuals may gain access to their complete
records from this system, including FTI, by contacting the system
manager at the address listed above. You must provide necessary
particulars such as your name, SSN/TIN, date of birth, and any other
identifying information requested by the Department while processing
the request to distinguish between individuals with the same name.
Alternatively, to gain access to a record in the system, you can make a
Privacy Act request through the Department's FOIA Service Center 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/TIN, 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.
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, contact the system manager at the address listed
above. You must provide necessary particulars such as your name, SSN/
TIN, date of birth, and any other identifying information requested by
the Department while processing the request to distinguish between
individuals with the same name. Alternatively, you can make a Privacy
Act request through the Department's FOIA Service Center 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:
None.
[FR Doc. 2023-13980 Filed 6-28-23; 8:45 am]
BILLING CODE 4000-01-P