[Federal Register Volume 59, Number 243 (Tuesday, December 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31242]
[[Page Unknown]]
[Federal Register: December 20, 1994]
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DEPARTMENT OF EDUCATION
Privacy Act of 1974; Amendments to a Notice of a New System of
Records for the National Student Loan Data System
AGENCY: Department of Education.
ACTION: Notice of changes to a system of records.
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SUMMARY: On June 29, 1994, the Department of Education published a
notice of a new system of records for the National Student Loan Data
System (NSLDS). The Department solicited comments on the routine uses
for the system and submitted a report of the system to the Office of
Management and Budget (OMB) and Congress. The Department received
comments from one commenter and some suggestions from OMB regarding
improvements to the notice. Several changes have been made to the
system as a result of this input and are discussed in the supplementary
information portion of this notice.
DATES: This amended system of records becomes effective December 20,
1994.
FOR FURTHER INFORMATION CONTACT: Susan Pentecost; Branch Chief,
National Student Loan Data System; U. S. Department of Education; 600
Independence Avenue, SW.; GSA Regional Office Building 3, Room 4640;
Washington DC 20202-5175; (202) 708-8125. Individuals who use a
telecommunications device for the deaf (TDD) may call the Federal
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8
p.m., Eastern time, Monday through Friday.
SUPPLEMENTARY INFORMATION: The Department published in the Federal
Register on June 29, 1994 (59 FR 33491) a notice of a new system of
records for the National Student Loan Data System (18-40-0039). The
Department received comments from one commenter and some suggestions
for improvement to the system notice from OMB. As a result, several
changes have been made to the system notice. Those changes are
discussed below.
Regarding the categories of individuals clause, it was noted that
the phrase ``borrowers who have applied for loans under the FFEL
(Federal Family Education Loan) Program will be tracked on this new
system . . .'' implies that the system will maintain data on all
students who have applied for aid under Title IV of the Higher
Education Act of 1965 (Title IV, HEA) not just those who have received
aid. The Department did not intend to cover under this system
applicants who may apply for but do not receive aid and this clause has
been modified to refer to individuals who applied for and received
certain Title IV loans. In addition, because the system notice only
covers individuals, references to persons who have died are removed,
because persons who have died are not considered individuals under the
Privacy Act. However, as a practical matter, the Department will
maintain information about these persons as necessary to manage the
Title IV program.
Regarding the categories of records clause, the entry ``an
applicant's demographic background'' has been removed because it was
only descriptive of the categories of information that followed.
Regarding the routine uses for the system, the following paragraphs
discuss the changes the Department is making to the system and issues
raised by the comments.
Routine use (a): Program purposes. Paragraph (2) has been removed
and the entities for which each disclosure is appropriate have been
included with the program purpose disclosures. A number of program
purpose routine uses were dropped from the notice because the
Department does not disclose individually identifiable information in
connection with certain purposes that were included in the original
Privacy Act notice. The program purposes have been broken out into a
series of eight (8) separate routine uses. Also, the program purpose
routine uses are recast to focus on the purpose of each disclosure
rather than the end results of the disclosure. Disclosure to OMB under
the Credit Reform Act (CRA) is removed from the program purpose routine
uses and stated as a separate routine use. The General Accounting
Office (GAO) is removed as a recipient under the program purpose
routine uses because it can get records under 5 U.S.C. 552a(b)(10) in
the course of performing its duties. Finally, consistent with the
preamble of the initial notice of this system and as stated in the
purposes of the system, disclosures from this system of records may be
made to enforce the terms of a loan and to collect a loan. This purpose
for disclosure is clarified now in routine use (a).
Routine use (b)(2): Litigation Disclosure. OMB suggested that the
Department clarify the routine use permitting disclosure to counsel to
clearly indicate that this routine use authorized disclosure only to
opposing counsel. OMB also asked that the Department clarify the
distinctions among the various types of disclosures made under routine
use (b)(2). Routine use (b) has been restructured to address these
concerns. OMB commented that a routine use was not appropriate for
disclosures to a court, as specified in (b)(2) of the notice, because
these disclosures should be made under a court order, pursuant to 5
U.S.C. 552a(b)(11). Therefore, disclosure to courts has been removed
from this routine use.
One of the commenters was concerned that disclosure to opposing
counsel and other parties in administrative proceedings under (b)(2)
would be inappropriate because these disclosures should be obtained
under a court order. The Assistant Secretary disagrees because he
believes that such a requirement would create an unnecessary burden on
the public and the Department. For example, if the Department is
involved in administrative litigation with a school regarding the
school's default rate calculation, the school would have access to
information pursuant to the program purpose routine use. However, the
school may need to disclose to its outside counsel certain individually
identifiable information obtained from the Department. Disclosure to
the school's counsel in this case, in the interest of ensuring proper
adjudication of default rate challenges, would certainly be consistent
with the purposes for which the records in this system are maintained.
However, if the school had to obtain a court order from the district
court before it could make such a disclosure, the administrative
litigation would be unnecessarily burdened. Thus, the Assistant
Secretary has decided to keep in this routine use disclosures to
opposing counsels and other representatives of parties in
administrative litigation with the Department.
Routine use (d): Contract Disclosure. This routine use has been
rewritten to clarify its meaning.
Routine use (e): Employee Grievance, Complaint or Conduct
Disclosure. This routine use has been revised to make it clearer.
Routine use (f): Labor Organization Disclosure. It was suggested
that the Department remove this routine use as unnecessary. However,
the Assistant Secretary foresees the possibility of a case in which a
supervisor takes an action against an employee and cites specific
alleged mishandling of Privacy Act information by the employee as the
basis for the action. The employee is entitled to representation by a
union representative who might need access to the individually
identifiable information in order to adequately protect the interests
of the employee. This routine use is consistent with the purposes of
the system in that it ensures that questions about proper handling of
confidential information are properly addressed to the benefit of the
individuals on whom the Department maintains information in this system
of records.
Routine use (g): Research Disclosure. This routine use has been
removed because 5 U.S.C. 552a(b)(5) adequately covers the needs
intended to be served by this routine use.
Routine use (i): FOIA Advice Disclosure. The Office of Management
and Budget suggested that disclosure to OMB of individually
identifiable information be removed because the Department can obtain
sufficient advice on Privacy Act matters from OMB without disclosing
individually identifiable information. The reference to OMB disclosures
has been removed.
Routine use (j): Subpoena Disclosure. This routine use is removed
because it appears inconsistent with certain judicial decisions
relating to the Privacy Act.
Regarding the Safeguards clause for the system, the description of
the safeguards has been rewritten to indicate more precisely the nature
of the safeguards used to protect this system.
Regarding the Retention and Disposal clause for the system, the
details regarding optical disk storage as a means of archiving data has
been changed to clarify that the shelf life of the archived information
will be enhanced through an optical disk maintenance program and will
be maintained for a total of ten years after the loan is closed.
The commenter was concerned about the timeframe for implementation
of the NSLDS system and the enhancements to its own system so that it
can report information to the NSLDS. The commenter was also concerned
that the Department appeared to be making changes to data elements in
the system and believed that the Department should continue to involve
program participants in the implementation strategies for NSLDS,
including setting the appropriate implementation timeframes. Contrary
to the commenter's understanding, the data elements that will require
system enhancements are not required to be reported until July 1995,
and the Department is now making changes to data elements that will be
submitted to NSLDS. The Department has worked closely with program
participants during the design phase of this system and intends to
continue working closely with them.
The system notice is being republished in its entirety to assist
readers in understanding the context for the changes that are being
made.
Dated: December 14, 1994.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
Accordingly, the Assistant Secretary revises the system of records
``National Student Loan Data System'' (System Number 18-40-0039) to
read as follows:
18-40-0039
National Student Loan Data System.
None.
E-Systems, Greenville Division, PO Box 6056, Greenville, Texas
75403-6056.
Borrowers who have applied for and received loans under the William
D. Ford Federal Direct Loan Program; borrowers who applied for and
received loans under the Federal Insured Student Loan (FISL) Program;
borrowers who applied for and received loans under the Federal Family
Education Loan (FFEL) Program; borrowers who applied for and received
loans under the Federal Perkins Loan Program (including National
Defense Student Loans and National Direct Student Loans); borrowers who
had a loan discharged in bankruptcy under the FISL Program and on which
the Department of Education (ED) paid a claim to the holder of the
loan; borrowers who defaulted on their loans or became disabled;
borrowers whose loans were guaranteed by a guaranty agency and who
defaulted under the FFEL Program if those loans were assigned by the
guaranty agency to ED; FFEL borrowers whose lenders have reported them
delinquent or reported their locations as unknown; FFEL borrowers whose
loans were cancelled due to borrower's total and permanent disability,
or whose loans were discharged in bankruptcy under the FFEL Program;
FFEL borrowers whose loans were discharged under certain circumstances
due to a school closing or a false loan certification; borrowers under
the Federal Perkins Loan Program whose loans have been assigned to ED
because of default; borrowers whose loans were serviced by guaranty
agencies for which ED has assumed management responsibility; and
Federal Pell and Federal Supplemental Educational Opportunity Grants on
which overpayments are collected by the Department.
Contains records regarding (1) loan and educational status; (2)
data on family income; (3) name; (4) social security number; (5)
address; (6) amount of claim; (7) forbearance; (8) cancellation; (9)
disability; (10) deferment information; (11) profile information on
schools, lenders and guaranty agencies; (12) student/borrower date of
birth; (13) details regarding each loan received by a student; (14)
school(s) attended by student who has received aid to attend at least
one school; (15) loan repayment information; (16) student/borrower
anticipated school completion date; (17) an indication which loans were
obtained from a lender-of-last-resort; (18) loan refund/cancellation
information; and (19) grant overpayment date and amount.
Higher Education Act of 1965, Title IV-A through IV-G, as amended,
(20 U.S.C. 1092b)
This system of records is maintained for the purposes of: (1)
Providing pre-screening for Title IV aid eligibility; (2) providing
default rate calculations for schools, guaranty agencies, and lenders;
(3) reporting changes in student/borrower enrollment status (Student
Status Confirmation Reporting (SSCR)); (4) preparing electronic
financial aid transcript information; (5) assisting guaranty agencies
in helping lenders collect delinquent loans (pre-claims assistance
(PCA)/supplemental PCA support); (6) providing audit and program review
planning; (7) supporting research studies and policy development; (8)
conducting budget analysis and development; (9) tracking loan transfers
from one entity to another; (10) assessing FFEL Program administration
of guaranty agencies, schools, and lenders; (11) tracking borrowers;
(12) providing information that will support Credit Reform Act of 1992
requirements; (13) providing information to track refunds/
cancellations; and (14) collecting debts owed to the Department under
Title IV of HEA.
ED may disclose information contained in a record in this system of
records without the consent of the individual if the disclosure is
compatible with the purpose for which the record was collected only as
needed to achieve a program objective under the following routine uses:
(a) Program purposes. Records may be disclosed for the following
program purposes:
(1) To verify the identity of the applicant and assist with the
determination of program eligibility and benefits, disclosures may be
made to appropriate guaranty agencies, educational and financial
institutions, and appropriate Federal agencies;
(2) To provide default rate calculations, disclosures may be made
to guaranty agencies, educational and financial institutions, and State
agencies;
(3) To assist students in locating the holders of their loan(s)
(loan transfer tracking), disclosures may be made to guaranty agencies,
educational and financial institutions, and State or Local agencies;
(4) To provide a standardized student status confirmation report
for schools to efficiently submit student enrollment status changes,
disclosures may be made to guaranty agencies, and educational and
financial institutions;
(5) To provide financial aid transcript information, disclosures
may be made to educational institutions;
(6) To assist guaranty agencies and lenders in the collection of
loans (pre-claims assistance/supplemental pre-claims assistance
notification), disclosures may be made to guaranty agencies,
educational and financial institutions, and State or Local agencies;
and
(7) To enforce the terms of a loan and assist in the collection of
a loan, disclosures may be made to guaranty agencies, educational and
financial institutions, and Federal, State, or Local agencies.
(b) Litigation disclosure.
(1) In the event that one of the parties listed below is involved
in litigation, or has an interest in litigation, ED may disclose
certain records to the parties described in paragraphs (2), (3) and (4)
of this routine use under the conditions specified in those paragraphs:
(i) ED, or any component of the Department; or
(ii) Any ED employee in his or her official capacity; or
(iii) Any employee of ED in his or her individual capacity where
the Department of Justice has agreed to provide or arrange for
representation for the employee; or
(iv) Any employee of ED in his or her individual capacity where the
agency has agreed to represent the employee; or
(v) The United States where ED determines that the litigation is
likely to affect the Department or any of its components.
(2) Disclosure to the Department of Justice. If ED determines that
disclosure of certain records to the Department of Justice or attorneys
engaged by the Department of Justice is relevant and necessary to
litigation and is compatible with the purpose for which the records
were collected, ED may disclose those records as a routine use to the
Department of Justice.
(3) Administrative Disclosures. If ED determines that disclosure of
certain records to an adjudicative body before which ED is authorized
to appear, individual or entity designated by ED or otherwise empowered
to resolve disputes is relevant and necessary to the administrative
litigation and is compatible with the purpose for which the records
were collected, ED may disclose those records as a routine use to the
adjudicative body, individual or entity.
(4) Opposing counsels, representatives and witnesses. If ED
determines that disclosure of certain records to an opposing counsel,
representative or witness in an administrative proceeding is relevant
and necessary to the litigation and is compatible with the purpose for
which the records were collected, ED may disclose those records as a
routine use to the counsel, representative or witness.
(c) 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 relevant
records in the system of records may be referred, as a routine use, to
the appropriate agency, whether foreign, Federal, State, Tribal, or
local, charged with the responsibility of investigating or prosecuting
such violation or charged with enforcing or implementing the statute,
or executive order or rule, regulation, or order issued pursuant
thereto.
(d) Contract disclosure. If ED contracts with an entity for the
purpose of performing any function that requires disclosure of records
in this system to employees of the contractor, ED may disclose the
records as a routine use to those employees. Before entering into such
a contract, ED shall require the contractor to maintain Privacy Act
safeguards as required under 5 U.S.C. 552a(m) with respect to the
records in the system.
(e) Disclosure to the Office of Management and Budget (OMB) for
Credit Reform Act (CRA) Support. ED may disclose individually
identifiable information to OMB as necessary to fulfill CRA
requirements. (These requirements currently include transfer of data on
lender interest benefits and special allowance payments, defaulted loan
balances, and supplemental preclaims assistance payments information.).
(f) Employee grievance, complaint or conduct disclosure. If a
record is relevant and necessary to an employee grievance, complaint,
or disciplinary action, ED may disclose the record in the course of
investigation, factfinding, or adjudication to any witness, designated
factfinder, mediator, or other person designated to resolve issues or
decide the matter.
(g) Labor organization disclosure. Where a contract between a
component of ED and a labor organization recognized under 5 U.S.C.,
Chapter 71, provides that the Department will disclose personal records
relevant and necessary to the organization's mission, records in this
system of records may be disclosed as a routine use to such an
organization.
(h) Computer matching disclosure. Any information from this system
of records, including personal information obtained from other agencies
through computer matching programs, may be disclosed to a Federal or
State agency under a computer matching agreement in connection with an
individual's application for, or participation in, any grant or loan
program administered by ED. The purposes of these disclosures may be to
determine program eligibility and benefits, enforce the condition and
terms of a loan or grant, permit the servicing and collecting of the
loan or grant, prosecute or enforce debarment, suspension, and
exclusionary actions, counsel the individual in repayment efforts,
investigate possible fraud and verify compliance with program
regulations, locate a delinquent or defaulted debtor, and initiate
legal action against an individual involved in program fraud or abuse.
(i) FOIA advice disclosure. In the event that ED deems it desirable
or necessary in determining whether particular records are required to
be disclosed under the Freedom of Information Act, disclosure may be
made to the Department of Justice for the purpose of obtaining its
advice.
(j) Disclosure to the Department of Justice. ED may disclose
information from this system of records as a routine use to the
Department of Justice to the extent necessary for obtaining its advice
on any matter relevant to an audit, inspection, or other inquiry
related to the Department's responsibilities under Title IV of the
Higher Education Act of 1965.
(k) Congressional member disclosure. ED may disclose information
from this system of records to a congressional office from the record
of an individual in response to an inquiry from the congressional
office made at the written request of that individual; the Member's
right to the information is no greater than the right of the individual
who requested it.
Disclosure pursuant to 5 U.S.C. 552a(b)(12): The Department may
disclose to a consumer reporting agency information regarding a claim
which is determined to be valid and overdue as follows: (1) The name,
taxpayer identification number and other information necessary to
establish the identity of the individual responsible for the claim; (2)
the amount, status, and history of the claim; and (3) the program under
which the claim arose. The Department may disclose the information
specified in this paragraph under 5 U.S.C. 552a(b)(12) and the
procedures contained in 31 U.S.C. 3711 (f). 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).
The records are maintained on magnetic tape and computer disk
media.
Data are retrieved by matching social security number, name and
date of birth.
All physical access to the sites of the contractor where this
system of records is maintained, is controlled and monitored by
security personnel who check each individual entering the building for
his or her employee or visitor badge. The computer system employed by
the Department of Education offers a high degree of resistance to
tampering and circumvention by use of software that requires user
access to be defined down to the individual data element. This security
system limits data access to Department of Education and contract staff
on a ``need to know'' basis, including external users of the system
(guaranty agency and school personnel) and controls individual users'
ability to access and alter records within the system. All users of
this system are given a unique user ID with a personal identifier. The
software monitors and tracks changes to any data element. Any change to
the database is recorded, together with the identity of the individual
user who made the change.
Records of individual loans will be archived twelve months after a
loan is closed. The loan will be archived to optical disk for
economical and efficient storage. An Optical Disk Maintenance Program
will be implemented to lengthen the shelf-life of the exposure on the
optical disk. The Department will retain and dispose of NSLDS records
in accordance with the ED Comprehensive Records Disposition Schedule,
Part 10 item 16(a)(b)(c)(d)(e), which permits retention for a maximum
period of ten years after the loan is closed.
Director, Division of Program Systems Service, U. S. Department of
Education, Office of Postsecondary Education, 600 Independence Avenue,
SW., Washington, DC 20202-5175.
If an individual wishes to determine whether a record exists
regarding him or her in this system of records, the individual must
provide the system manager his or her name, date of birth, social
security number, and the name of the school or lender from which the
loan or grant was obtained. Requests for notification about an
individual must meet the requirements of the Department of Education's
Privacy Act regulations at 34 CFR 5b.5.
If an individual wishes to gain access to a record in this system,
he or she must contact the system manager and provide information as
described in the notification procedures.
If an individual wishes to change the content of a record in the
system of records, he or she must contact the system manager with the
information described in the notification procedures, identify the
specific item(s) to be changed, and provide a written justification for
the change, including any supporting documentation. Requests to amend a
record must meet the requirements of the Department of Education
Privacy Act regulations at 34 CFR 5b.7.
Information is obtained from guaranty agencies, schools, and the
Title IV Program Files (Privacy Act System of Records Number 18-4000-
24). However, lenders and guaranty agencies are not a source of
information for participants in the William D. Ford Federal Direct Loan
Program because the Department maintains individual records of
borrowers.
None.
[FR Doc. 94-31242 Filed 12-19-94; 8:45 am]
BILLING CODE 4000-01-P
