Publication Date: August 3, 2011

Posted Date: August 3, 2011

Subject: Privacy Act; System of Records

FR Type: Notice


[Federal Register Volume 76, Number 149 (Wednesday, August 3, 2011)]
[Notices]
[Pages 46774-46781]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19607]

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DEPARTMENT OF EDUCATION

Privacy Act of 1974; System of Records--Federal Student Aid 
Application File
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of altered system of records.
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SUMMARY: In accordance with the Privacy Act of 1974, as amended 
(Privacy Act), 5 United States Code (U.S.C.) 552a, the Acting Chief 
Operating Officer for Federal Student Aid (FSA) of the U.S. Department 
of Education (the Department) publishes this notice proposing to revise 
the system of records for the Federal Student Financial Aid Application 
File (18-11-01), 64 Federal Register (FR) 30159-30161 (June 4, 1999), 
as corrected by 64 FR 72384, 72407 (December 27, 1999), as corrected by 
65 FR 11294-11295 (March 2, 2000), as corrected by 66 FR 18758 (April 
11, 2001), as altered by 74 FR 68802-68808 (December 29, 2009). This 
system of records contains information provided by applicants for Title 
IV of the Higher Education Act of 1965, as amended, (HEA) program 
assistance, which is collected from the Free Application for Federal 
Student Aid (FAFSA). Among other purposes described in this notice, the 
information collected is maintained in order to determine an 
applicant's eligibility for the Federal student financial assistance 
programs authorized by Title IV of the HEA; make a loan, grant, or 
scholarship; and verify the identity of the applicant.
    This altered system of records includes records on individuals who 
are applying for Title IV, HEA program assistance. The records contain 
individually identifying information about an applicant, including, but 
not limited to: An applicant's name, address, Social Security number 
(SSN), date of birth, citizenship status, status as a veteran, driver's 
license number, marital status, and income and asset information. This 
altered system also contains information provided by the parent(s) of a 
dependent applicant, including, but not limited to: Name, date of 
birth, marital status, SSN, highest level of schooling completed, e-
mail address, and income and asset information. This altered system of 
records also contains information about spousal income and asset 
information of a married applicant.
    This notice proposes to expand the categories of individuals on 
whom records are maintained, to add two new purposes to the system of 
records, to expand a programmatic routine use disclosure, and to add a 
new programmatic routine use disclosure that was inadvertently deleted 
when the system of records was last altered. The notice would expand 
the individuals covered by the system to include secondary school 
students about whom requesting entities, such as schools, local 
educational agencies, and other local and State agencies, submit
[[Page 46775]]
information (e.g., name, date of birth, and zip code) to the Department 
in order for the Department to provide these entities with the 
student's FAFSA completion filing status to promote and encourage the 
student to apply for Title IV, HEA program assistance, State 
assistance, and aid awarded by institutions of higher education.
    The notice also would add two new purposes to this system of 
records, which would specify that the purposes of the system are (1) to 
determine the eligibility of applicants for the award of State 
postsecondary education assistance and for the award of aid by eligible 
institutions of higher education or other entities designated by the 
Secretary and to administer those awards, and (2) to promote and 
encourage application for Title IV, HEA program assistance, State 
assistance, and aid awarded by institutions of higher education or 
other entities designated by the Secretary.
    In addition, the notice proposes to expand a current programmatic 
routine use disclosure to permit the Department's disclosure of FAFSA 
completion information to a local educational agency (LEA) or secondary 
school where the student is or was enrolled, or other State, local, and 
private entities designated by the Secretary in order to facilitate and 
promote FAFSA completion. Specifically, a current programmatic routine 
use disclosure permits the Department to disclose a student's FAFSA 
filing status only to the student's LEA and secondary school in order 
to permit these entities to counsel the student about applying for 
financial aid and to offer the student assistance with the completion 
of the FAFSA. The Department proposes to expand this current 
programmatic routine use disclosure so that the Department may make 
disclosures for this same purpose to other local agencies, State 
agencies, and other entities designated by the Secretary in an effort 
to increase FAFSA completion rates within a State.
    Finally, the Department proposes to add a new, programmatic routine 
use disclosure to the system that was inadvertently deleted when the 
system of records was last altered. This new routine use disclosure 
would permit the Department to disclose records from this system of 
records to State agencies, eligible institutions of higher education, 
and other entities designated by the Secretary in order to permit them 
to determine an applicant's eligibility for the award of State 
postsecondary education assistance or for the award of aid by eligible 
institutions of higher education or other entities designated by the 
Secretary and to administer those awards.
DATES: We must receive your comments on or before September 2, 2011.
    The Department filed a report describing the altered system of 
records covered by this notice with the Chair of the Senate Committee 
on Homeland Security and Governmental Affairs, the Chair of the House 
Committee on Oversight and Government Reform, and the Administrator of 
the Office of Information and Regulatory Affairs in the Office of 
Management and Budget (OMB), on July 21, 2011. This altered system of 
records will become effective at the later date of--(1) The expiration 
of the 40-day period for OMB review on August 30, 2011; or (2) 
September 2, 2011, unless the system of records needs to be changed as 
a result of public comment or OMB review.
ADDRESSES: Address all comments about this altered system of records 
to: Director, Application Processing Division, Program Management 
Systems, Federal Student Aid, U.S. Department of Education, 830 First 
Street, NE., room 63C4, Union Center Plaza (UCP), Washington, DC 20202. 
If you prefer to send your comments by e-mail, use the following 
address: comments@ed.gov.
    You must include the term ``Federal Student Aid Application File'' 
in the subject line of your electronic message.
    During and after the comment period, you may inspect all public 
comments about this notice in room 63C5, Union Center Plaza (UCP), 6th 
floor, 830 First Street, NE., Washington, DC 20202 between the hours of 
8:00 a.m. and 4:30 p.m., Washington, DC time, Monday through Friday 
except Federal holidays.
Assistance to Individuals With Disabilities in Reviewing the Rulemaking 
Record
    On request, we will supply an appropriate accommodation or 
auxiliary aid to an individual with a disability who needs assistance 
to review the comments or other documents in the public rulemaking 
record for this notice. If you want to schedule an appointment for this 
type of accommodation or auxiliary aid, please contact the person 
listed under FOR FURTHER INFORMATION CONTACT.
FOR FURTHER INFORMATION CONTACT: Director, Application Processing 
Division, Program Management Systems, Federal Student Aid, U.S. 
Department of Education, 830 First Street, NE., room 63C4, UCP, 
Washington, DC 20202. Telephone: (202)377-3205. If you use a 
telecommunications device for the deaf (TDD), you can call the Federal 
Relay Service (FRS), toll free, at 1-800-877-8339.
    Individuals with disabilities can obtain this document in an 
accessible format (e.g., braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under this section.
SUPPLEMENTARY INFORMATION:
Introduction
    The Privacy Act of 1974 (5 U.S.C. 552a(e)(4) and (11)) requires the 
Department to publish in the Federal Register this notice of an altered 
system of records. The Department's regulations implementing the 
Privacy Act are contained in the Code of Federal Regulations (CFR) in 
34 CFR part 5b.
    The Privacy Act applies to information about an individual that is 
maintained in a system of records from which information is retrieved 
by a unique identifier associated with the individual, such as a name 
or Social Security number (SSN). The information about each individual 
is called a ``record,'' and the system, whether manual or computer-
based, is called a ``system of records.''
    The Privacy Act requires each agency to publish a system of records 
notice in the Federal Register and to submit, whenever the agency 
publishes a new system of records or significantly alters an 
established system of records, a report to the Administrator of the 
Office of Information and Regulatory Affairs, OMB. Each agency is also 
required to send copies of the report to the Chair of the Senate 
Committee on Homeland Security and Governmental Affairs and the Chair 
of the House of Representatives Committee on Oversight and Government 
Reform.
    A system of records is considered ``altered'' whenever an agency 
expands the types or categories of information maintained, 
significantly expands the types or categories of individuals about whom 
records are maintained, changes the purpose for which the information 
is used, changes the equipment configuration in a way that creates 
substantially greater access to the records, or adds a routine use 
disclosure to the system.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: http://www.gpo.gov/fdsys. At this site you can view this document, 
as well as all other documents of this Department published in the 
Federal
[[Page 46776]]
Register, in text or Adobe Portable Document Format (PDF). To use PDF 
you must have Adobe Acrobat Reader, which is available free at the 
site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.
    Dated: July 28, 2011.
James W. Runcie,
Acting Chief Operating Officer, Federal Student Aid.
    For the reasons discussed in the preamble, the Acting Chief 
Operating Officer, Federal Student Aid, of the U.S. Department of 
Education (Department), publishes a notice of an altered system of 
records to read as follows:
SYSTEM NUMBER:
18-11-01
SYSTEM NAME:
    Federal Student Aid Application File.
SECURITY CLASSIFICATION:
    None.
SYSTEM LOCATIONS:
    Virtual Data Center (VDC), 2300 W. Plano Parkway, Plano, TX 75075 
(Electronic records).
    Vangent, 901 South 42nd Street, Mt Vernon, IL 62864 (Paper, Free 
Application for Federal Student Aid (FAFSA) Applications Storage 
Facility).
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The Federal Student Aid Application File (the system), which is 
part of the Department's Central Processing System (CPS), contains 
records on students who apply for Federal student financial assistance 
programs authorized by Title IV of the Higher Education Act of 1965, as 
amended (HEA). This system also contains information on the parent(s) 
of a dependent applicant and the spouse of a married applicant. In 
addition, this system covers secondary school students about whom 
requesting entities, such as schools, local educational agencies 
(LEAs), and other local and State agencies, submit information (e.g., 
name, date of birth, and zip code) to the Department in order for the 
Department to provide these entities with the student's Free 
Application for Federal Student Aid (FAFSA) completion filing status to 
promote and encourage the student to apply for Title IV, HEA program 
assistance, State assistance, and aid awarded by institutions of higher 
education.
CATEGORIES OF RECORDS IN THE SYSTEM:
    This system of records contains information provided by applicants 
for Title IV, HEA program assistance, on the FAFSA, including, but not 
limited to, the applicant's name, address, Social Security number 
(SSN), date of birth, telephone number, driver's license number, e-mail 
address, citizenship status, marital status, legal residence, status as 
a veteran, educational status, and financial data. This system also 
contains information provided about the parent(s) of a dependent 
applicant, including, but not limited to, the parent's highest level of 
schooling completed, marital status, SSN, last name and first initial, 
date of birth, e-mail address, number in household supported by the 
parent, and income and asset information. For an applicant who is 
married, this system of records also contains spousal income and asset 
information.
    While using this system to analyze its student population data for 
verification selection via the Institutional Student Information Record 
(ISIR) Analysis Tools (IA Tools) product, postsecondary institution(s) 
attended by the applicant may create user defined fields with 
institutional data that are saved to the system. These data elements 
may consist of information that is privacy protected. Examples include, 
but are not limited to: The student's grade point average or 
information about a student's employment with the postsecondary 
institution.
    The system determines an applicant's expected family contribution 
(EFC). The EFC is used by institutions to determine the student's 
eligibility for Federal and institutional program assistance, and by 
States to determine the student's eligibility for State grants. The 
Department notifies the applicant of the results of his or her 
application via the Student Aid Report (SAR). The Department provides 
the institutions identified on the applicant's FAFSA with the ISIR, 
which indicates whether there are discrepant or insufficient data, 
school adjustments, or CPS assumptions that affect processing of the 
FAFSA. Other information that the system includes, but is not limited 
to: Secondary EFC, dependency status, Federal Pell Grant Eligibility, 
duplicate SSN, selection for verification, Simplified Needs Test (SNT) 
or Automatic Zero EFC (used for extremely low family income), CPS 
processing comments, reject codes (explanation for applicant's FAFSA 
not computing EFC), assumptions made with regard to the student's data 
due to incomplete or inconsistent FAFSA data, financial aid 
administrator's (FAA) adjustments including dependency status 
overrides, and CPS record processing information (application receipt 
date, transaction number, transaction process date, SAR Serial Number, 
Compute Number, Data Release Number (DRN), National Student Loan 
Database System (NSLDS) match results, a bar code, and transaction 
source).
    Information from other Department systems, such as NSLDS, the 
Common Origination and Disbursement System (COD), and the Student Aid 
Internet Gateway (SAIG) Participation Management System, is added to 
this system of records. The Appendix contains a more detailed 
description of the data added to this system of records as a result of 
the exchanges of data with other Department systems and the 
Department's computer matching programs with other Federal agencies.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Title IV of the Higher Education Act (HEA), as amended (20 U.S.C. 
1001 et seq.).
PURPOSES:
    The information contained in this system is maintained for the 
purposes of: (1) Assisting with the determination, correction, 
processing, tracking, and reporting of program eligibility and benefits 
for the Federal student financial assistance programs authorized by 
Title IV of the HEA; (2) making a loan, grant, or scholarship; (3) 
verifying the identity of the applicant, the spouse if applicable, and 
the parent(s) of a dependent applicant, and the accuracy of the 
information in this system; (4) reporting the results of the need 
analysis, Federal Pell Grant eligibility determination, and the results 
of duly authorized computer matching programs between the Department 
and other Federal agencies to applicants, postsecondary institutions, 
third-party servicers, State agencies designated by the applicant, and 
other Departmental and investigative components for use in operating 
and evaluating the Title IV, HEA programs and in the imposition of 
criminal, civil, or administrative sanctions; (5) enforcing the terms 
and conditions of a Title IV, HEA loan or grant; (6) servicing and 
collecting a delinquent Title IV, HEA loan or grant; (7) initiating 
enforcement action against an individual involved in program fraud, 
abuse, or noncompliance; (8) locating a debtor; (9) maintaining a 
record of the data supplied by those requesting assistance; (10) 
ensuring compliance with and enforcing Title IV, HEA programmatic 
requirements; (11) acting as a repository and source for
[[Page 46777]]
information necessary to fulfill the requirements of Title IV of the 
HEA; (12) evaluating Title IV, HEA program effectiveness; (13) enabling 
institutions of higher education designated by the applicant to review 
and analyze the financial aid data of their applicant population; (14) 
assisting students with the completion of the application for the 
Federal student financial assistance programs authorized by Title IV of 
the HEA; (15) determining the eligibility of applicants for the award 
of State postsecondary education assistance and for the award of aid by 
eligible institutions of higher education or other entities designated 
by the Secretary and administering those awards; and 16) promoting and 
encouraging application for Title IV, HEA program assistance, State 
assistance, and aid awarded by institutions of higher education or 
other entities designated by the Secretary.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USES AND PURPOSES OF SUCH USES:
    The Department may disclose information contained in a record in 
this system of records under the routine uses listed in this system of 
records without the consent of the individual if the disclosure is 
compatible with the purposes for which the record was collected. These 
disclosures may be made on a case-by-case basis, or, 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.
    (a) To verify the identity of the applicant and the applicant's 
spouse, if applicable, and the parent(s) of a dependent applicant; to 
determine the accuracy of the information contained in the record; to 
support compliance with Title IV, HEA statutory and regulatory 
requirements; and to assist with the determination, correction, 
processing, tracking, and reporting of program eligibility and 
benefits, the Department may disclose records to guaranty agencies and 
financial institutions participating in the Federal Family Education 
Loan (FFEL) Programs, institutions of higher education, third-party 
servicers, and Federal and State agencies;
    (b) To provide an applicant's financial aid history, including 
information about the applicant's Title IV, HEA loan defaults and Title 
IV, HEA grant program overpayments, the Department may disclose records 
to institutions of higher education, guaranty and State agencies, 
financial institutions participating in the FFEL Programs, and third-
party servicers;
    (c) To facilitate receiving and correcting application data, 
processing Federal Pell Grants and Direct Loans, and reporting Federal 
Perkins Loan Program expenditures to the Department's processing and 
reporting systems, the Department may disclose records to institutions 
of higher education, State agencies, and third-party servicers;
    (d) To assist loan holders with the collection and servicing of 
Title IV, HEA loans, to support pre-claims/supplemental pre-claims 
assistance, to assist in locating borrowers, and to assist in locating 
students who owe grant overpayments, the Department may disclose 
records to guaranty agencies and financial institutions participating 
in the FFEL Programs, institutions of higher education, third-party 
servicers, and Federal, State, and local agencies;
    (e) To facilitate assessments of Title IV, HEA program compliance, 
the Department may disclose records to guaranty agencies and financial 
institutions participating in the FFEL Programs, institutions of higher 
education, third-party servicers, and Federal, State, and local 
agencies;
    (f) To assist in locating holders of loan(s), the Department may 
disclose records to student borrowers, guaranty agencies and financial 
institutions participating in the FFEL Programs, institutions of higher 
education, third-party servicers, and Federal, State, and local 
agencies;
    (g) To assist in assessing the administration of Title IV, HEA 
program funds by guaranty agencies, financial institutions, 
institutions of higher education, and third-party servicers, the 
Department may disclose records to Federal and State agencies;
    (h) To enforce the terms of a loan or grant or to assist in the 
collection of loan or grant overpayments, the Department may disclose 
records to guaranty agencies and financial institutions participating 
in the FFEL programs, institutions of higher education, third-party 
servicers, and Federal, State, and local agencies;
    (i) To assist borrowers in repayment, the Department may disclose 
records to guaranty agencies and financial institutions participating 
in the FFEL program, institutions of higher education, third-party 
servicers, and Federal, State, and local agencies;
    (j) To initiate legal action against an individual involved in 
illegal or unauthorized Title IV, HEA program expenditures or 
activities, the Department may disclose records to guaranty agencies 
and financial institutions participating in the FFEL programs, 
institutions of higher education, third-party servicers, and Federal, 
State, and local agencies;
    (k) To initiate or support a limitation, suspension, or termination 
action, an emergency action, or a debarment or suspension action, the 
Department may disclose records to guaranty agencies and financial 
institutions participating in the FFEL programs, institutions of higher 
education, third-party servicers, and Federal, State, and local 
agencies;
    (l) To investigate complaints, update files, and correct errors, 
the Department may disclose records to guaranty agencies and financial 
institutions participating in the FFEL programs, institutions of higher 
education, third-party servicers, and Federal, State, and local 
agencies;
    (m) To inform the parent(s) of a dependent applicant or a spouse of 
an applicant of information about the parent(s) or spouse in an 
application for Title IV, HEA funds, the Department may disclose 
records to the parent(s) or the spouse, respectively;
    (n) To disclose to the parent(s) of a dependent applicant applying 
for a PLUS loan (to be used on behalf of a student), to identify the 
student as the correct beneficiary of the PLUS loan funds, and to allow 
the processing of the PLUS loan application and promissory note, the 
Department may disclose records to the parent(s) applying for the PLUS 
loan;
    (o) To expedite the student application process, the Department may 
disclose information from this system, upon request by a third-party, 
provided that the third-party provides the Department with the 
applicant's first and last name, SSN, date of birth, and DRN. A DRN is 
a four-digit number assigned to an application by Federal Student Aid;
    (p) To encourage a student to complete a FAFSA or to assist a 
student with the completion of a FAFSA, the Department may disclose the 
FAFSA filing status of the student to a LEA, a secondary school where 
the student is or was enrolled, or other State, local, or private 
entity designated by the Secretary;
    (q) To enable an applicant, should the applicant wish to do so, to 
obtain information from other Federal agencies' records that will 
assist the applicant in completing the FAFSA online, the Department may 
disclose information from this system of records to other Federal 
agencies, such as the Internal Revenue Service; and
    (r) To determine an applicant's eligibility for the award of State
[[Page 46778]]
postsecondary education assistance and for the award of aid by eligible 
institutions of higher education or other entities designated by the 
Secretary and to administer those awards, the Department may disclose 
information from this system of records to State agencies, eligible 
institutions of higher education, and other entities designated by the 
Secretary.
    (2) Disclosure for Use by Other Law Enforcement Agencies. The 
Department may disclose information to any Federal, State, local, or 
foreign agency or other public authority responsible for enforcing, 
investigating, or prosecuting violations of administrative, civil, or 
criminal law or regulation if that information is relevant to any 
enforcement, regulatory, investigative, or prosecutorial responsibility 
within the receiving entity's jurisdiction.
    (3) Enforcement Disclosure. If information in the system of 
records, either alone or in connection with other information, 
indicates a violation or potential violation of any applicable 
statutory, regulatory, or legally binding requirement, the Department 
may disclose records to an entity charged with investigating or 
prosecuting those violations or potential violations.
    (4) Litigation and Alternative Dispute Resolution (ADR) 
Disclosures.
    (a) Introduction. In the event that one of the following parties is 
involved in litigation or ADR, or has an interest in litigation or ADR, 
the Department may disclose certain records to the parties described in 
paragraphs (b), (c), and (d) of this routine use under the conditions 
specified in those paragraphs:
    (i) The Department or any of its components.
    (ii) Any Department employee in his or her official capacity.
    (iii) Any Department employee in his or her individual capacity 
where the Department of Justice (DOJ) agrees to or has been requested 
to provide or arrange for representation of the employee.
    (iv) Any Department employee in his or her individual capacity 
where the Department has agreed to represent the employee.
    (v) The United States, where the Department determines that the 
litigation is likely to affect the Department or any of its components.
    (b) Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
litigation or ADR, the Department may disclose those records as a 
routine use to the DOJ.
    (c) Adjudicative Disclosures. If the Department determines that 
disclosure of certain records to an adjudicative body before which the 
Department is authorized to appear or to an individual or entity 
designated by the Department or otherwise empowered to resolve or 
mediate disputes is relevant and necessary to litigation or ADR, the 
Department may disclose those records as a routine use to the 
adjudicative body, individual, or entity.
    (d) Parties, Counsel, Representatives, and Witnesses. If the 
Department determines that disclosure of certain records is relevant 
and necessary to litigation or ADR, the Department may disclose those 
records as a routine use to the party, counsel, representative, or 
witness.
    (5) 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.
    (6) Contracting 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. Before entering into such a contract, the Department 
shall require the contractor to establish and maintain the safeguards 
required under 5 U.S.C. 552a(m) of the Privacy Act with respect to the 
records.
    (7) Congressional Member Disclosure. The Department may disclose 
records to a member of Congress in response to an inquiry from the 
member made at the written request of the individual whose records are 
being disclosed. The member's right to the information is no greater 
than the right of the individual who requested it.
    (8) Employment, Benefit, and Contracting Disclosure.
    (a) For Decisions by the Department. The Department may disclose a 
record to a Federal, State, or local agency maintaining civil, 
criminal, or other relevant enforcement or other pertinent records, or 
to another public authority or professional organization, if necessary 
to obtain information relevant to a Department decision concerning the 
hiring or retention of an employee or other personnel action, the 
issuance of a security clearance, the letting of a contract, or the 
issuance of a license, grant, or other benefit.
    (b) For Decisions by Other Public Agencies and Professional 
Organizations. The Department may disclose a record to a Federal, 
State, local, or other public authority or professional organization, 
in connection with the hiring or retention of an employee or other 
personnel action, the issuance of a security clearance, the reporting 
of an investigation of an employee, the letting of a contract, or the 
issuance of a license, grant, or other benefit, to the extent that the 
record is relevant and necessary to the receiving entity's decision on 
the matter.
    (9) Employee Grievance, Complaint, or Conduct Disclosure. If a 
record is relevant and necessary to an employee grievance, complaint, 
or disciplinary action, the Department may disclose the record in the 
course of investigation, fact-finding, or adjudication to any witness, 
designated fact-finder, mediator, or other person designated to resolve 
issues or decide the matter.
    (10) 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.
    (11) 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.
    (12) Research Disclosure. The Department may disclose records to a 
researcher if the Department determines that the individual or 
organization to which the disclosure would be made is qualified to 
carry out specific research related to functions or purposes of this 
system of records. Further, 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 maintain Privacy 
Act safeguards with respect to the disclosed records.
    (13) Disclosure to the OMB for Federal Credit Reform Act (CRA) 
Support. The Department may disclose records 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 pre-claims assistance 
payments information.
    (14) Disclosures to third-parties through computer matching 
programs. Any information from this system of records, including 
personal information obtained from other agencies through computer 
matching programs, may be disclosed to any third-party through a 
computer matching program in connection with an individual's
[[Page 46779]]
application or participation in any grant or loan program administered 
by the Department. Purposes of these disclosures may be to determine 
program eligibility and benefits, enforce the conditions and terms of a 
loan or grant, permit the servicing and collecting of a loan or grant, 
counsel the individual in repayment efforts, investigate possible fraud 
and verify compliance with program regulations, locate a delinquent or 
defaulted debtor, or initiate legal action against an individual 
involved in program fraud or abuse.
    (15) 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 the security or confidentiality of information in the 
system of records has been compromised; (b) the Department has 
determined that as a result of the suspected or confirmed compromise 
there is a risk of harm to economic or property interests, identity 
theft or fraud, or harm to the security or integrity of this system or 
other systems or programs (whether maintained by the Department or 
another agency or entity) that rely upon the compromised information; 
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 compromise and 
prevent, minimize, or remedy such harm.
DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12): The Department may 
disclose the following information to a consumer reporting agency 
regarding a valid overdue claim of the Department: (1) The name, 
address, taxpayer identification number, and other information 
necessary to establish the identity of the individual responsible for 
the claim; (2) the amount, status, and history of the claim; and (3) 
the program under which the claim arose. The Department may disclose 
the information specified in this paragraph under 5 U.S.C. 552a(b)(12) 
and the procedures contained in subsection 31 U.S.C. 3711(e). A 
consumer reporting agency to which these disclosures may be made is 
defined at 31 U.S.C. 3701(a)(3).
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Paper applications are maintained in standard Federal Records 
Center boxes in locked storage rooms at the contractor facility in Mt. 
Vernon, Illinois, and then moved to the Federal archives where the 
records are maintained.
    Computerized applicant records, which include optically imaged 
documents, are maintained on magnetic tape reels, cartridges, and hard 
disks in the computer facility and locked storage rooms within the 
Virtual Data Center. Microfiche records maintained in the Washington, 
DC office are stored in a locked fireproof file cabinet. Access is 
available only to authorized personnel.
RETRIEVABILITY:
    Records are indexed and retrieved by the applicant's SSN, name, and 
the academic year in which the applicant applied for Title IV, HEA 
program assistance.
SAFEGUARDS:
    Physical access to the data systems housed within the VDC is 
controlled by a computerized badge reading system, and the entire 
complex is patrolled by security personnel during non-business hours. 
The computer system employed by the Department offers a high degree of 
resistance to tampering and circumvention. Multiple levels of security 
are maintained within the computer system control program. 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 users of this system of 
records are given a unique user ID with personal identifiers. All 
interactions by individual users with the system are recorded. Paper 
applications are maintained in standard Federal Records Center boxes in 
a locked storage room at the contractor facility in Mount Vernon, 
Illinois, and then moved to the Federal archives where the records are 
maintained.
RETENTION AND DISPOSAL:
    The Department will retain all identifiable CPS records for a 
period not to exceed 15 years after the end of the award year in 
accordance with the applicable Record Retention Schedule as approved by 
the National Archives and Records Administration. At the conclusion of 
the mandatory retention period, these records will be destroyed 
consistent with legal retention requirements established by the 
Department in conjunction with the National Archives and Records 
Administration.
SYSTEM MANAGER(S) AND ADDRESS:
    Director, Application Processing Division, Program Management 
Systems, Federal Student Aid, U.S. Department of Education, 830 First 
St., NE., UCP, room 63C4, Washington, DC 20202.
NOTIFICATION PROCEDURES:
    If you wish to determine whether a record exists regarding you in 
the system of records, contact the system manager and provide your 
name, date of birth, and SSN or call 1-800-4-FED-AID (1-800-433-3243) 
and give the same information. 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.
RECORD ACCESS PROCEDURES:
    If you wish to gain access to a record in this system, contact the 
system manager and provide information as described in the Notification 
Procedure. 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 for the current 
processing year (which begins on January 1 of the calendar year and 
continues for 18 months until June 30 of the following calendar year) 
in the FAFSA, contact the system manager with the information described 
in the Notification Procedure, identify the specific items to be 
changed, and provide a justification for the change. Requests to amend 
a record must meet the requirements of regulations at 34 CFR 5b.7.
RECORD SOURCE CATEGORIES:
    Applicants for Federal student financial aid, their spouses (if 
married), and the parent(s) of dependent applicants provide the 
information used in this system by filing a phone, paper, or electronic 
version of the FAFSA with the Department of Education. (The electronic 
FAFSA can be accessed at http://www.fafsa.ed.gov.)
    Postsecondary institutions designated by the applicant or third-
party servicers designated by the postsecondary institution may correct 
the records in this system as a result of documentation provided by the 
applicant or by a dependent applicant's parents, such as Federal income 
return(s) (IRS Form
[[Page 46780]]
1040, IRS Form 1040A, or IRS Form 1040EZ), Social Security card(s), and 
Department of Homeland Security I-551 Resident Alien cards.
    This system contains information added during CPS processing and 
information received from other Department systems, including NSLDS, 
COD, and the SAIG Participation Management System. For more information 
about the information received from these other Department systems, see 
the Appendix.
    The results of computer matching programs with the following 
Federal agencies are also added to the student's record during CPS 
processing: The Social Security Administration (SSA), the Department of 
Veterans Affairs (VA), the Selective Service System (SSS), the 
Department of Homeland Security (DHS), the Department of Justice (DOJ), 
and the Department of Defense (DoD). For more information about the 
information received from these computer matching programs, see the 
Appendix.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.
Appendix to 18-11-01
Additional Information about Categories of Records in the System and 
Record Source Categories:
    Data provided to the Department as a result of computer matching 
with other Federal agencies are added during CPS processing. These 
computer matches are with the SSA to verify the SSNs of applicants, and 
dependent applicants' parent(s), and to confirm the U.S. citizenship 
status of applicants as recorded in SSA records and date of death (if 
applicable) of applicants, and dependent applicants' parents, pursuant 
to sections 428B(f)(2), 483(a)(12), and 484(g) and (p) of the HEA (20 
U.S.C. 1078-2(f)(2), 1090(a)(12), and 1091(g) and (p)); with the VA to 
verify the status of applicants who claim to be veterans, pursuant to 
section 480(c) and (d)(1)(D) of the HEA (20 U.S.C. 1087vv(c) and 
(d)(1)(D)); with the SSS to confirm the registration status of male 
applicants, pursuant to section 484(n) of the HEA (20 U.S.C. 1091(n)); 
with the DHS to confirm the immigration status of applicants for 
assistance as authorized by section 484(g) of the HEA (20 U.S.C. 
1091(g)); with the DOJ to enforce any requirement imposed at the 
discretion of a court, pursuant to section 5301 of the Anti-Drug Abuse 
Act of 1988, Public Law 100-690, as amended by section 1002(d) of the 
Crime Control Act of 1990, Public Law 101-647 (21 U.S.C. 862), denying 
Federal benefits under the programs established by Title IV of the HEA 
to any individual convicted of a State or Federal offense for the 
distribution or possession of a controlled substance; and with the DoD 
to identify dependents of U.S. military personnel who died in service 
in Iraq and Afghanistan after September 11, 2001, to determine if they 
are eligible for increased amounts of Title IV, HEA program assistance, 
pursuant to sections 420R and 473(b) of the HEA (20 U.S.C. 1070h and 
1087mm(b)).
    During CPS processing, the Department's COD system sends 
information to this system for students who have received a Federal 
Pell Grant. The CPS uses this information for verification analysis and 
for end-of-year reporting. These data include, but are not limited to: 
Verification Selection and Status, Potential Over-award Project (POP) 
indicator, Institutional Cost of Attendance, Reporting and Attended 
Campus Pell ID and Enrollment Date, and Federal Pell Grant Program 
information (Scheduled Federal Pell Grant Award, Origination Award 
Amount, Total Accepted Disbursement Amount, Number of Disbursements 
Accepted, Percentage of Eligibility Used At This Attended Campus 
Institution, and Date of Last Activity from the Origination or 
Disbursement table).
    The CPS also receives applicant data from the Department's NSLDS 
system each time an application is processed or corrected. This process 
assesses student aid eligibility, updates financial aid history, and 
ensures compliance with Title IV, HEA regulations. Some of these data 
appear on the applicant's SAR and ISIR. Title IV, HEA award information 
is provided to NSLDS from several different sources. Federal Perkins 
Loan data and Federal Supplemental Educational Opportunity Grant 
(FSEOG) overpayment data are sent from postsecondary institutions or 
their third-party servicers; the Department's COD system provides 
Federal Pell Grant and Direct Loan data; and State and guaranty 
agencies provide data on FFEL loans received from lending institutions 
participating in the FFEL programs.
    Financial aid transcript data reported by NSLDS provides 
applicants, postsecondary institutions, and third-party servicers with 
information about the type(s), amount(s), dates, and overpayment status 
of prior and current Title IV HEA funds the applicant received. FFEL 
and William D. Ford Federal Direct Student Loan (DL) data reported by 
NSLDS include, but are not limited to: (1) Aggregate Loan Data, such as 
Subsidized, Unsubsidized; Combined Outstanding Principal Balances; 
Unallocated Consolidated Outstanding Principal Balances, Subsidized, 
Unsubsidized; Combined Pending Disbursements, Subsidized, Unsubsidized; 
Combined Totals; and Unallocated Consolidated Totals; (2) Detail Loan 
Data, such as Loan Sequence Number; Loan Type Code; Loan Change Flag; 
Loan Program Code; Current Status Code and Date; Outstanding Principal 
Balance and Date; Net Loan Amount; Loan begin and End Dates; Amount and 
Date of Last Disbursement; Guaranty Agency Code; School Code; Contact 
Code; and Institution Type and Grade Level; and (3) system flags for 
Additional Unsubsidized Loan; Capitalized Interest; Defaulted Loan 
Change; Discharged Loan Change; Loan Satisfactory Repayment Change; 
Active Bankruptcy Change; Overpayments Change; Aggregate Loan Change; 
Defaulted Loan; Discharged Loan; Loan Satisfactory Repayment; Active 
Bankruptcy; Additional Loans; DL Master Promissory Note; DL PLUS Loan 
Master Promissory Note; Subsidized Loan Limit; and the Combined Loan 
Limit. Federal Perkins Loan data reported by NSLDS include, but are not 
limited to: Cumulative and Current Year Disbursement Amounts; flags for 
Perkins Loan Change; Defaulted Loan; Discharged Loan; Loan Satisfactory 
Repayment; Active Bankruptcy; Additional Loans; and Perkins Overpayment 
Flag and Contact (School or Region). Federal Pell Grant payment data 
reported include, but are not limited to: Pell Sequence Number; Pell 
Attended School Code; Pell Transaction Number; Last Update Date; 
Scheduled Amount; Award Amount; Amount Paid to Date; Percent Scheduled 
Award Used; Pell Payment EFC; Flags for Pell Verification; and Pell 
Payment Change. Federal Teacher Education Assistance for College and 
Higher Education (TEACH) Grant Program data include, but are not 
limited to: TEACH Grant Overpayment Contact; TEACH Grant Overpayment 
Flag; TEACH Grant Loan Principal Balance; TEACH Grant Total; and Teach 
Grant Change Flag. The National Science and Mathematics Access to 
Retain Talent Grant (SMART Grant) data include, but are not limited to: 
SMART Grant Overpayment Flag; SMART Grant Overpayment Contact; and 
SMART Grant Change Flag. Iraq and Afghanistan Service Grants data 
include, but are not limited to: Total Award Amount. Academic 
Competitiveness Grant (ACG) data include, but are not limited to: ACG 
Award Amount; ACG Overpayment Flag; and ACG Payment Change Flag. FSEOG 
data include, but are not limited
[[Page 46781]]
to: Overpayment Flag and contact information.
    The Department obtains and exchanges information that is included 
in this system of records from institutions offering secondary level 
education, local educational agencies, other local agencies, 
postsecondary institutions, third-party servicers, State agencies, and 
lending institutions that participate in the FFEL programs. These 
eligible entities register with the SAIG system to participate in the 
information exchanges specified for their business processes.
[FR Doc. 2011-19607 Filed 8-2-11; 8:45 am]
BILLING CODE 4000-01-P

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