Privacy Act of 1974; System of Records, 37095-37100 [2011-15747]

Agencies

• DEPARTMENT OF EDUCATION

[Federal Register Volume 76, Number 122 (Friday, June 24, 2011)]
[Notices]
[Pages 37095-37100]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15747]


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DEPARTMENT OF EDUCATION


Privacy Act of 1974; System of Records

AGENCY: Federal Student Aid, U.S. Department of Education.

ACTION: Notice of an altered system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended 
(Privacy Act), 5 U.S.C. 552a, the Chief Operating Officer for Federal 
Student Aid (FSA) of the Department of Education (Department) publishes 
this notice proposing to revise the system of records entitled 
``National Student Loan Data System (NSLDS)'' (18-11-06), originally 
published on December 27, 1999 (64 FR 72395-72397) and altered on 
September 7, 2010 (75 FR 54331-54336).
    In this notice, the Department proposes to revise this system of 
records to make updates needed as a result of amendments to the Program 
Integrity regulations that apply to institutions that participate in 
the Federal student financial aid programs under title IV of the Higher 
Education Act of 1965, as amended (HEA) that will impose new 
requirements on certain programs that prepare students for gainful 
employment in a recognized occupation. As a result of these regulatory 
changes, we have expanded the categories of records maintained in this 
system, the categories of individuals covered by the system, the 
system's purposes, and the routine uses to reflect needed programmatic 
disclosures. We also have expanded the authority under which the system 
of records is maintained to include the authority under sections 101, 
102, 485, and 485B of the HEA (20 U.S.C. 1001, 1002, 1092, and 1092b) 
to collect data to determine whether an educational program provides 
training to prepare students for gainful employment in a recognized 
occupation.
    The Department seeks comments on the proposed routine uses in the 
altered system of records notice on or before July 25, 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, Office of Management 
and Budget (OMB), on June 20, 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 July 30, 2011; or (2) July 25, 2011, unless 
the system of records needs to be changed as a result of public comment 
or OMB review.

ADDRESSES: Address all comments about the proposed routine uses in this 
altered system of records to: Director, NSLDS Systems, Operations and 
Aid Delivery Management Services, FSA, U.S. Department of Education, 
Union Center Plaza (UCP), 830 First Street, NE., room 44E3, Washington, 
DC 20202-5454. Telephone: 202-377-3547. If you prefer to send comments 
by e-mail, use the following address: comments@ed.gov.
    You must include the term ``NSLDS comments'' in the subject line of 
your electronic message.
    During or after the comment period, you may inspect all public 
comments about this notice in room 44D2, UCP, 4th floor, 830 First 
Street, NE., Washington, DC 20202-5454 between the hours of 8 a.m. and 
4:30 p.m., Eastern Time, Monday through Friday of each week 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, NSLDS Systems, Operations 
and Aid Delivery Management Services, FSA, U.S. Department of 
Education, UCP, 830 First Street, NE., Washington, DC 20202-5454. 
Telephone: 202-377-3547. If you use a telecommunications device for the 
deaf (TDD), 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 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 each 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 notice of a new or altered system of records in the 
Federal Register and to prepare, whenever the agency publishes a new 
system of records or makes a significant change to an established 
system of records, a report to the Chair of the Committee on Oversight 
and Government Reform of the House of Representatives, the Chair of the 
Committee on Homeland Security and Governmental Affairs of the Senate, 
and the Administrator of the Office of Information and Regulatory 
Affairs, OMB.
    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. This system of records was first published in 
the Federal Register on December 27, 1999 (64 FR 72395-97), and altered 
on September 7, 2010 (75 FR 54331-54336), and a number of changes are 
needed to update and accurately describe the current system of records.
    This system of records will facilitate the Secretary of Education's 
performance of statutory duties to prescribe standards and procedures 
under sections 101, 102, 485, and 485B of the HEA (20 U.S.C. 1001, 
1002, 1092, and 1092b) (including relevant definitions) that require 
all eligible institutions to report programmatic information for 
disclosure to students. This system of records will also allow 
institutions, lenders, and guaranty agencies to report information on 
all

[[Page 37096]]

aspects of loans and grants made under title IV of the HEA in uniform 
formats, in order to permit the direct comparison of data submitted by 
individual institutions, lenders, servicers, or guaranty agencies.
    The notice describes an expansion of the type of information 
maintained in the system. Additional data will be collected from 
institutions with programs of study that prepare students for gainful 
employment in a recognized occupation. Institutions will report 
required information both on students who begin a gainful employment 
program and other information on students who complete these programs. 
Through the collection of this data, the information will be used to 
evaluate the effectiveness of gainful employment programs.
    The notice also expands the categories of individuals covered by 
the system. The system contains records on identifiers for students 
(both title IV, HEA recipients and students who do not receive title IV 
aid) who begin programs of study during an award year in a program that 
prepares students for gainful employment in a recognized occupation. 
The system also contains records on students who complete a program 
that prepares students for gainful employment in a recognized 
occupation.
    The notice also expands the authority under which the system of 
records is maintained to include the authority under sections 101, 102, 
and 485 of the HEA (20 U.S.C. 1001, 1002, and 1092) to collect data to 
determine whether the educational program provides training to prepare 
students for gainful employment in a recognized occupation. The notice 
also expands the system's purposes. Additional purposes for the 
information maintained in this system relating to institutions 
participating in and administering programs under title IV of the HEA 
are to obtain data on and to report on (i) Students in a gainful 
employment program and whether these students complete the program or 
matriculate to a higher credentialed program at the same institution or 
at another institution, (ii) the amounts that students who complete a 
gainful employment program borrow in private educational loans and 
receive from institutionally provided financing plans, as well as the 
total number of students enrolled in each gainful employment program at 
an institution at the end of the award year, and (iii) the median loan 
debt incurred by students who complete a gainful employment program, 
for the purposes of establishing whether a particular gainful 
employment program is successfully preparing students who complete the 
program to be gainfully employed and making this data available to the 
institution. Additional purposes for the information maintained in this 
system relating to the Department's oversight and administration of 
programs under title IV of the HEA are: To capture data to support 
compliance and to obtain and distribute performance metrics related to 
gainful employment programs and to provide data for program oversight 
and strategic decision-making in the administration of these programs.
    Finally, the notice proposes to expand the current programmatic 
routine use disclosures needed to carry out responsibilities under the 
HEA. First, the notice proposes to expand current programmatic routine 
use 1(a) to indicate that the Department may disclose records to the 
applicant, guaranty agencies, educational institutions, financial 
institutions and servicers, and to Federal and State agencies to assist 
with the determination of institutional program eligibility. Second, 
the Department proposes to add new programmatic routine use 1(c) to 
permit the Department to disclose information from the system to 
institutions in order to obtain data on and to report on: (i) Students 
in a gainful employment program and whether these students complete the 
program or matriculate to a higher credentialed program at the same 
institution or at another institution; (ii) the amounts that students 
who complete a gainful employment program borrow in private educational 
loans and receive from institutionally provided financing plans, as 
well as the total number of students enrolled in each gainful 
employment program at an institution at the end of the award year; and 
(iii) median loan debt incurred by students who complete a gainful 
employment program.
    This altered system of records better reflects the current 
programmatic routine use disclosures needed by FSA to establish 
applicant eligibility, as required under the HEA, and to determine 
whether for-profit institutions and occupationally specific training at 
other institutions lead to gainful employment in a recognized 
occupation. Collectively, these revisions will enhance the ability of 
the Secretary to collect and maintain information on loans made, 
insured, or guaranteed under Part B of title IV of the HEA, and loans 
made under Parts D and E of title IV of the HEA; and to establish 
measures for determining whether certain programs lead to gainful 
employment in recognized occupations and the conditions under which 
those programs remain eligible for title IV, HEA program funds.
    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: https://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 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: https://www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Dated: June 20, 2011.
James Runcie,
Acting Chief Operating Officer, Federal Student Aid.
    For the reasons discussed in the preamble, the Chief Operating 
Officer, Federal Student Aid, of the U.S. Department of Education 
(Department), publishes a notice of an altered system of records to 
read as follows:
SYSTEM NUMBER:
    18-11-06.

SYSTEM NAME:
    National Student Loan Data System (NSLDS).

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION:
    Dell Perot Systems, 2300 West Plano Parkway, Plano, TX 75075-8247. 
(This is the computer center for the NSLDS Application Virtual Data 
Center.)
    Iron Mountain, P.O. Box 294317, Lewisville, Texas 75029-4317. (This 
is the location where back-up tapes for NSLDS are maintained.)

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system contains records on borrowers under the title IV, 
Higher Education Act of 1965, as amended (HEA) loan programs. This 
system contains records on borrowers who have applied for and received 
loans under the William D. Ford Federal Direct Loan (Direct Loan) 
Program, the Federal Family Education Loan (FFEL) Program,

[[Page 37097]]

the Federal Insured Student Loan (FISL) Program, and the Federal 
Perkins Loan Program (including National Defense Student Loans, 
National Direct Student Loans, and Perkins Expanded Lending and Income 
Contingent Loans) (Perkins Loans). The NSLDS also contains records on 
recipients of Federal Pell Grants, Academic Competitiveness Grants 
(ACG), National Science and Mathematics Access to Retain Talent 
(National SMART) Grants, and Teacher Education Assistance for College 
and Higher Education (TEACH) Grants, the Iraq and Afghanistan Service 
Grants, as well as on persons who owe an overpayment on a Federal Pell 
Grant, an ACG Grant, a National SMART Grant, a Federal Supplemental 
Educational Opportunity Grant (FSEOG), Iraq and Afghanistan Service 
Grant, or a Federal Perkins Loan. NSLDS contains student enrollment 
information for those who have received an FFEL Loan, an FISL Loan, a 
Direct Loan, or a Perkins Loan. NSLDS contains Master Conduit Loan 
Program Data, Master Loan Participation Program (LPP) Data, and loan-
level detail on FFEL Subsidized, Unsubsidized, and PLUS loans funded 
through those programs. The system also contains records on students 
(both title IV, HEA recipients and students who do not receive title IV 
aid) who, during an award year, begin attendance in a program that is 
at least one-academic-year training program that leads to a 
certificate, or other non-degree recognized credential and that 
prepares students for gainful employment in a recognized occupation, or 
who begin an eligible program provided by a proprietary institution of 
higher education or a postsecondary vocational institution. The system 
also contains records on students who complete a program that prepares 
students for gainful employment in a recognized occupation.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in NSLDS include, but are not limited to: (1) Borrower 
identifier information including Social Security Number (SSN), name, 
date of birth, and driver's license; (2) information on the borrower's 
loan(s) covering the period from the origination of the loan through 
final payment, cancellation, consolidation, discharge, or other final 
disposition including details such as loan amount, disbursements, 
balances, loan status, collections, claims, deferments, refunds, and 
cancellations; (3) student identifiers including the student's SSN, 
date of birth, and name, student enrollment information including the 
Office of Postsecondary Education identification number (OPEID number) 
of the institution where the student began a program of study that 
prepares students for gainful employment in a recognized occupation 
pursuant to sections 1001 and 1002 of the HEA (``gainful employment 
program''), the Classification of Instructional Program (CIP) code for 
the program in which the student enrolled, and if the student completed 
the program, the completion date, and CIP code of the completed 
program, the level of study, the amount of the student's private 
educational loan debt, the amount of institutionally provided financing 
owed by the student, whether the student matriculated to a higher 
credentialed program at the same institution or another institution, 
aggregated income information on graduates of the particular gainful 
employment program, and the median loan debt incurred by students who 
completed the gainful employment program; (4) student demographic 
information such as dependency status, citizenship, veteran status, 
marital status, gender, income and asset information, expected family 
contribution, and address; (5) information provided by the parent(s) of 
a dependent recipient, including, but not limited to: name, date of 
birth, SSN, marital status, e-mail address, highest level of schooling 
completed, and income and asset information; (6) information about the 
spousal income and asset information of a married borrower who is 
repaying a title IV, HEA loan under an income-based repayment plan; (7) 
Federal Pell Grant, ACG Grant, National SMART Grant, TEACH Grant, and 
Iraq and Afghanistan Service Grant amounts and dates of disbursement; 
(8) Federal Pell Grant, ACG Grant, National SMART Grant, Iraq and 
Afghanistan Service Grant, FSEOG, and Federal Perkins Loan Program 
overpayment amounts; (9) demographic and contact information on the 
guaranty agency that guarantees the borrower's FFEL loan and the 
lender(s), holder(s), and servicer(s) of the borrower's loan(s); (10) 
NSLDS user profiles that include name, SSN, date of birth, employer, 
and NSLDS user name; (11) information concerning the date of any 
default on loans and the aggregated loan data to support cohort default 
rate calculations for educational institutions, financial institutions, 
and guaranty agencies; (12) pre- and post-screening results used to 
determine a student or parent's aid eligibility; and, (13) information 
on financial institutions participating in the loan participation and 
sale programs established by the Department under the Ensured Continued 
Access to Student Loan Act of 2008 (ECASLA), including the collection 
of: ECASLA loan-level funding amounts, dates of ECASLA participation 
for financial institutions, dates and amounts of loans sold to the 
Department under ECASLA, and the amount of loans funded by the 
Department's programs but repurchased by the lender.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The authority under which the system is maintained includes 
sections 101, 102, 485, and 485B of the HEA (20 U.S.C. 1001, 1002, 
1092, and 1092B). The collection of SSNs of borrowers who are covered 
by this system is authorized by 31 U.S.C. 7701 and Executive Order 9397 
(November 22, 1943), as amended by Executive Order 13478 (November 18, 
2008).

PURPOSE(S):
    The information contained in this system is maintained for the 
following purposes relating to students and borrowers: (1) To determine 
student/borrower eligibility for title IV, HEA programs by NSLDS pre- 
and post-screening processes; (2) to report changes in student/borrower 
enrollment status and enrollment in programs subject to the Program 
Integrity regulations published in the Federal Register on October 29, 
2010 (75 FR 66832) that address gainful employment reporting via the 
Gainful Employment Reporting Process; (3) to track loan borrowers and 
students who owe grant overpayment amounts (debtors); (4) to provide an 
Exit Counseling tool for Teach Grants, FFEL, and Direct Loan programs 
that provides various calculators, requires students to complete a quiz 
to ensure understanding of their repayment obligations, and collects 
information to assist in the activity of skip-tracing for loan holders; 
(5) to provide Web-based access for borrowers/students to their loan, 
grant, and enrollment data; (6) to maintain information on the status 
of student loans; (7) to maintain information on Federal Pell, ACG, 
National SMART, TEACH, and Iraq and Afghanistan Service Grant awards to 
students; and (8) to provide borrowers and NSLDS users with loan 
refund/cancellation details. The information maintained in this system 
is also maintained for the following purposes relating to institutions 
participating in and administering the title IV, HEA programs: (1) To 
permit Department staff, Department contractors, guaranty agencies, 
eligible lenders, and eligible institutions of higher education to 
verify the eligibility of a student, potential

[[Page 37098]]

student, or parent for loans; (2) to provide student aggregate loan 
calculations to educational institutions; (3) to track loan transfers 
from one entity to another; (4) to determine default rates for 
educational institutions, guaranty agencies, and lenders; (5) to 
prepare electronic financial aid histories on students or borrowers for 
educational institutions, guaranty agencies, Department staff, and 
Department contractors; (6) to alert educational institutions of 
changes in financial aid eligibility of students via the Transfer 
Student Monitoring process; (7) to assist Department staff, Department 
contractors and agents, guaranty agencies, educational institutions, 
lenders, and servicers in collecting debts arising from receipt of 
title IV, HEA funds; (8) to assess title IV, HEA program administration 
of guaranty agencies, educational institutions, lenders, and servicers; 
(9) to display organizational contact information provided by 
educational institutions, guaranty agencies, lenders, and servicers; 
(10) to provide reporting capabilities for educational institutions, 
guaranty agencies, lenders, and servicers for use in title IV, HEA 
administrative functions and for the Department for use in oversight 
and compliance; (11) to provide financial institutions, servicers, 
Department staff, and Department contractors with contact information 
on loan holders for use in the collection of loans; (12) to provide 
schools and servicers with information to resolve overpayments of Pell, 
ACG, National SMART, TEACH, Iraq and Afghanistan Service Grants, and 
FSEOG grants; (13) to assist Department staff, contractors, guaranty 
agencies, and the Department of Justice in the collection of debts owed 
to the Department under title IV of the HEA; (14) to obtain data on and 
to report on students in a gainful employment program and whether these 
students complete the program or matriculate to a higher credentialed 
program at the same institution or at another institution for the 
purposes of establishing whether a particular gainful employment 
program is successfully preparing students who complete the program to 
be gainfully employed and making this information available to the 
institution; and (15) to obtain information on and to report on the 
amounts that students who complete a gainful employment program borrow 
in private educational loans and receive from institutionally provided 
financing plans, as well as the total number of students enrolled in 
each gainful employment program at an institution at the end of the 
award year and the median loan debt incurred by students who complete a 
gainful employment program, for the purposes of establishing whether a 
particular gainful employment program is successfully preparing 
students who complete the program to be gainfully employed and making 
this information available to the institution. The information 
maintained in this system is also maintained for the following purposes 
relating to the Department's oversight and administration of the title 
IV, HEA programs: (1) To assist audit and program review planning; (2) 
to support research studies and policy development; (3) to conduct 
budget analysis and program review planning; (4) to provide information 
that supports the Department's compliance with the Federal Credit 
Reform Act of 1990, as amended (CRA); (5) to ensure only authorized 
users access the database and to maintain a history of the student/
borrower information reviewed; (6) to track the Department's interest 
in loans funded through ECASLA; (7) to track TEACH grants that have 
been converted to loans; (8) to track eligibility for and participation 
in Public Service Loan Forgiveness; (9) to capture data to support 
compliance and to obtain and distribute performance metrics related to 
gainful employment programs; and (10) to provide data for program 
oversight and strategic decision-making in the administration of higher 
education programs.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    The Department may disclose information contained in a record in 
this system of records under the routine uses listed in this system of 
records notice without the consent of the individual if the disclosure 
is compatible with the purposes for which the record was collected. 
These disclosures may be made on a case-by-case basis or, if the 
Department has complied with the computer matching requirements of the 
Privacy Act of 1974, as amended, under a computer matching agreement.
    (1) Program Disclosures.
    The Department may disclose records for the following program 
purposes:
    (a) To verify the identity of the applicant involved, the accuracy 
of the record, or to assist with the determination of program 
eligibility and benefits, as well as institutional program eligibility, 
the Department may disclose records to the applicant, guaranty 
agencies, educational institutions, financial institutions and 
servicers, and to Federal and State agencies;
    (b) To support default rate calculations and/or provide information 
on borrowers' current loan status, the Department may disclose records 
to guaranty agencies, educational institutions, financial institutions, 
servicers, and State agencies;
    (c) To obtain data on and to report on students enrolled in a 
gainful employment program, students who complete a gainful employment 
program, information on the amounts of private educational loans and 
institutionally provided financing plans that students have incurred as 
a result of completing their gainful employment program, whether 
students in a gainful employment program matriculate to a higher 
credentialed program at the same institution or another institution, 
the total number of students in each gainful employment program at an 
institution at the end of the award year, and the median debt incurred 
by students who complete a gainful employment program, the Department 
may disclose records to educational institutions;
    (d) To provide financial aid history information to aid in their 
administration of title IV, HEA programs, the Department may disclose 
records to financial aid professionals, guaranty agencies, loan 
holders, or servicers;
    (e) To support auditors and program reviewers in planning and 
carrying out their assessments of title IV, HEA program compliance, the 
Department may disclose records to guaranty agencies, educational 
institutions, financial institutions and servicers, and to Federal, 
State, and local agencies;
    (f) To support governmental researchers and policy analysts, the 
Department may disclose records to Federal, State, and local agencies 
using safeguards for system integrity and ensuring compliance with the 
Privacy Act;
    (g) To support Federal budget analysts in the development of budget 
needs and forecasts, the Department may disclose records to Federal and 
State agencies;
    (h) To assist in locating holders of loan(s), the Department may 
disclose records to students/borrowers, guaranty agencies, educational 
institutions, financial institutions and servicers, and Federal 
agencies;
    (i) To assist analysts in assessing title IV, HEA program 
administration by guaranty agencies, educational institutions, and 
financial institutions and servicers, the Department may disclose 
records to Federal and State agencies;
    (j) To assist loan holders in locating borrowers, the Department 
may disclose records to guaranty agencies,

[[Page 37099]]

educational institutions, financial institutions that hold an interest 
in the loan and their servicers, and to Federal agencies;
    (k) To assist with meeting requirements under the CRA, the 
Department may disclose records to Federal agencies;
    (l) To assist program administrators with tracking refunds and 
cancellations of title IV, HEA loans, the Department may disclose 
records to guaranty agencies, educational institutions, financial 
institutions and servicers, and to Federal and State agencies;
    (m) To enforce the terms of a loan, assist in the collection of a 
loan, or assist in the collection of an aid overpayment, the Department 
may disclose records to guaranty agencies, loan servicers, educational 
institutions and financial institutions, to the Department of Justice 
and private counsel retained by the Department of Justice, and to other 
Federal, State, or local agencies; and
    (n) To assist the Department in tracking loans funded under ECASLA, 
the Department may disclose records to Federal agencies.
    (2) Disclosure for Use by Other Law Enforcement Agencies. The 
Department may disclose information to any Federal, State, or 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. In the event that information in this 
system of records indicates, either on its face or in connection with 
other information, a violation or potential violation of any applicable 
statute, regulation, or order of a competent authority, the Department 
may disclose the relevant records to the appropriate agency, whether 
foreign, Federal, State, tribal, or local, charged with the 
responsibility of investigating or prosecuting that violation or 
charged with enforcing or implementing the statute, Executive Order, 
rule, regulation, or order issued pursuant thereto.
    (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; or
    (ii) Any Department employee in his or her official capacity; or
    (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; or
    (iv) Any Department employee in his or her individual capacity 
where the Department has agreed to represent the employee; or
    (v) The United States, where the Department determines that the 
litigation is likely to affect the Department or any of its components.
    (b) Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
litigation or ADR, and is compatible with the purpose for which the 
records were collected, 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) Disclosure to Parties, Counsel, Representatives, and Witnesses. 
If the Department determines that disclosure of certain records is 
relevant and necessary to litigation or ADR, the Department may 
disclose those records as a routine use to the party, counsel, 
representative, or witness.
    (5) Freedom of Information Act (FOIA) or Privacy Act Advice 
Disclosure. The Department may disclose records to the DOJ or the 
Office of Management and Budget (OMB) if the Department seeks advice 
regarding whether records maintained in this system of records are 
required to be disclosed under the FOIA or the Privacy Act.
    (6) 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. Before entering into such a contract, the Department 
shall require the contractor to establish and maintain the safeguards 
required under the Privacy Act (5 U.S.C. 552a(m)) with respect to the 
records in the system.
    (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 Departmental decision concerning 
the hiring or retention of an employee or other personnel action, the 
issuance of a security clearance, the letting of a contract, or the 
issuance of a license, grant, or other benefit.
    (b) For Decisions by Other Public Agencies 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. The 
Department may disclose a record in this system of records to another 
agency of the Federal Government if the record is relevant to one of 
the following proceedings regarding a present or former employee of the 
Department: Complaint, grievance, or disciplinary or competency 
determination proceedings. The disclosure may only be made during the 
course of the proceeding.
    (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. 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) Disclosure to the OMB for CRA Support. The Department may 
disclose records to OMB as necessary to fulfill

[[Page 37100]]

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.
    (13) 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 in 15 U.S.C. 1681a(f) and 31 U.S.C. 3701(a)(3).

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    The records are maintained electronically.

RETRIEVABILITY:
    In order for users to retrieve student/borrower information they 
must supply the student/borrower SSN, name, and date of birth.

SAFEGUARDS:
    Physical access to this system housed within the Virtual Data 
Center 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.

RETENTION AND DISPOSAL:
    Records are retained for 15 years after an account is paid in full, 
and then destroyed in accordance with the Department's records 
retention and disposition schedule 051.

SYSTEM MANAGER(S) AND ADDRESS:
    Director, National Student Loan Data System, FSA, U.S. Department 
of Education, UCP, 830 First Street, NE., 4th Floor, Washington, DC 
20202-5454.

NOTIFICATION PROCEDURE:
    If you wish to determine whether a record exists regarding you in 
this system of records, contact the system manager and provide your 
name, date of birth, SSN, and the name of the school or lender from 
which the loan or grant was obtained. 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 in the system of 
records, you must contact the system manager with the information 
described in the notification procedures, identify the specific item(s) 
to be changed, and provide a justification for the change, including 
any supporting documentation. Requests to amend a record must meet the 
requirements of the Department's Privacy Act regulations at 34 CFR 
5b.7.

RECORD SOURCE CATEGORIES:
    Information is obtained from guaranty agencies, educational 
institutions, and financial institutions and servicers, and the Free 
Application for Federal Student Aid completed by students and parents. 
Information is also obtained from other Department systems such as the 
Direct Loan Servicing System (covered by the system of records entitled 
``Common Services for Borrowers''); Debt Management Collection System 
(covered by the system of records entitled ``Common Servicers for 
Borrowers''); Common Origination and Disbursement System; Financial 
Management System; Student Aid Internet Gateway, Participant Management 
System (covered by the system of records entitled ``Student Aid 
Internet Gateway Enrollment''); Postsecondary Education Participants 
System (covered by the system of records entitled ``Postsecondary 
Education Participants System''); and Central Processing System 
(covered by the system of records entitled ``Federal Student Aid 
Application File'').

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 2011-15747 Filed 6-23-11; 8:45 am]
BILLING CODE 4000-01-U