Privacy Act of 1974; System of Records, 12081-12085 [2016-05015]

Agencies

• DEPARTMENT OF EDUCATION

[Federal Register Volume 81, Number 45 (Tuesday, March 8, 2016)]
[Notices]
[Pages 12081-12085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05015]


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DEPARTMENT OF EDUCATION

[Docket ID ED-2016-FSA-0014]


Privacy Act of 1974; System of Records

AGENCY: Federal Student Aid, 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, Federal 
Student Aid, of the U.S. Department of Education (Department) publishes 
this notice proposing an altered system of records for the Office of 
the Student Loan Ombudsman Records (18-11-11).
    The Department created the Office of the Student Loan Ombudsman 
Records system to support the administration of title IV of the Higher 
Education Act of 1965, as amended (HEA); to receive, review, and 
attempt to resolve complaints from customers of Federal Student Aid 
programs, and to resolve such complaints within the Department and with 
institutions of higher education, lenders, guaranty agencies, loan 
servicers, and other participants in the loan programs; and to compile 
and analyze data on borrower complaints and make appropriate 
recommendations.
    The Department seeks comments on the altered system of records 
described in this notice, in accordance with the requirements of the 
Privacy Act.

DATES: Submit your comments on this notice of an altered system of 
records on or before April 7, 2016.
    The Department filed a report describing the altered system of 
records covered by this notice with the Chair of the Senate Committee 
on Homeland

[[Page 12082]]

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 February 23, 2016. This altered system of records will become 
effective on the later date of: (1) The expiration of the 40-day period 
for OMB review on April 4, 2016, unless OMB waives 10 days of the 40-
day review period for compelling reasons shown by the Department; or 
(2) April 7, 2016, unless the system of records requires changes as a 
result of public comment or OMB review. The Department will publish any 
changes to the altered system of records resulting from public comment 
or OMB review.

ADDRESSES: Submit your comments through the Federal eRulemaking Portal 
or via postal mail, commercial delivery, or hand delivery. We will not 
accept comments submitted by fax or by email or those submitted after 
the comment period. To ensure that we do not receive duplicate copies, 
please submit your comments only once. In addition, please include the 
Docket ID and the term ``Office of the Student Loan Ombudsman Records'' 
at the top of your comments.
     Federal eRulemaking Portal: Go to www.regulations.gov to 
submit your comments electronically. Information on using 
Regulations.gov, including instructions for accessing agency documents, 
submitting comments, and viewing the docket, is available on the site 
under the ``Help'' tab.
     Postal Mail, Commercial Delivery, or Hand Delivery: If you 
mail or deliver your comments about this system of records, address 
them to: Joyce DeMoss, Ombudsman/Director, Ombudsman Group, Customer 
Experience, Federal Student Aid, U.S. Department of Education, 830 
First Street NE., 4th Floor/MC-5144, Union Center Plaza (UCP), 
Washington, DC 20202-5144. Telephone: (202) 377-3992.
    Privacy Note: The Department's policy is to make all comments 
received from members of the public available for public viewing in 
their entirety on the Federal eRulemaking Portal at 
www.regulations.gov. Therefore, commenters should be careful to include 
in their comments only information that they wish to make publicly 
available.
    Assistance to Individuals with Disabilities in Reviewing the 
Rulemaking Record: On request, we will provide an appropriate 
accommodation or auxiliary aid to an individual with a disability who 
needs assistance to review the comments or other documents in the 
public rulemaking record for this notice. If you want to schedule an 
appointment for this type of accommodation or auxiliary aid, please 
contact the person listed under FOR FURTHER INFORMATION CONTACT.

FOR FURTHER INFORMATION CONTACT: Ombudsman/Director, Ombudsman Group, 
Customer Experience, Federal Student Aid, U.S. Department of Education, 
830 First Street NE., 4th Floor/MC-5144, Union Center Plaza (UCP), 
Washington, DC 20202-5144. Telephone: (202) 377-3992.
    If you use a telecommunications device for the deaf or text 
telephone, call the Federal Relay Service, toll free, at 1-800-877-
8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., braille, large print, audiotape, or compact 
disc) on request to the contact person listed in this section.

SUPPLEMENTARY INFORMATION: 

Preamble

    The Privacy Act (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 the individual 
is called a ``record,'' and the system, whether manual or computer 
based, is called a ``system of records.''
    The Privacy Act requires agencies to publish a notice in the 
Federal Register and to prepare a report to the Administrator of the 
Office of Information and Regulatory Affairs, OMB whenever the agency 
publishes a new system of records or makes a significant change to an 
established system of records. Each agency is also required to send 
copies to the Chair of the Senate Committee on Homeland Security and 
Governmental Affairs and the Chair of the House Committee on Oversight 
and Government Reform. These reports are intended to permit an 
evaluation of the probable or potential effect of the proposal on the 
privacy rights of individuals.
    This system collects records on individuals who are, were, or may 
be participants in any of the Student Financial Assistance Programs 
under title IV of the HEA, and who request assistance, directly or 
through a designated third party, from the Ombudsman. The Office of the 
Student Loan Ombudsman Records system collects the information for a 
number of purposes related to the duties and responsibilities of the 
Ombudsman, including: Verifying the identities of individuals; 
recording complaints and comments; tracking individual cases through 
final resolution; reporting trends; analyzing the data to recommend 
improvements in Student Financial Assistance Programs; and assisting in 
the resolution of disputes.
    The Office of the Student Loan Ombudsman Records system consists of 
a variety of records that identify the individuals' complaints, 
requests for assistance, or other inquiries. Records include, but are 
not limited to: Written documentation of the individual's complaint, 
request for assistance, or other comment or inquiry; and information 
pertaining to the student's or parent's title IV Student Financial 
Assistance Program account(s), such as the person's name, SSN, date of 
birth, address, telephone number(s), and Federal Student Aid ID (FSA 
ID). Additionally, records include the name, address, and phone numbers 
of school(s), lender(s), secondary holder(s) or lender(s), guaranty 
agency(ies), servicer(s), and private collection agency(ies), if 
applicable.
    On December 27, 1999, the Department published the first Privacy 
Act System of Record Notice (SORN) issuance for the Office of the 
Student Loan Ombudsman Records. This SORN has not been amended since 
this original date of publication. Given the amount of time that has 
passed, we have provided a summary of the changes and the corresponding 
rationale.
    First, we altered the system location section because the Office of 
the Student Loan Ombudsman Records system will now be hosted by a cloud 
provider.
    Second, we amended routine uses (1), (2), and (3). We modified 
routine use (1), Program Disclosure, to permit disclosures to be made 
for additional programmatic reasons to private collection agencies and 
Federal agencies in order to obtain further information about a 
complaint, request for assistance, or other inquiry before it can be 
resolved. Routine use (2), Disclosure for Use by Other Law Enforcement 
Agencies, and routine use (3), Enforcement Disclosure, were both 
modified to remove the limitation that disclosures could only be made 
for possible violations of criminal laws and

[[Page 12083]]

civil fraud and to permit disclosures to be made for other possible 
civil or administrative violations of the law.
    Third, we added new routine uses (9), (10), and (11). Routine use 
(9), Borrower Complaint Disclosure, was added to accommodate sharing 
data regarding borrower complaints that were filed by borrowers with 
other agencies, such as the Consumer Financial Protection Bureau 
(CFPB). We added routine use (10), Freedom of Information Act (FOIA) 
and Privacy Act Advice Disclosure, so that we could make disclosures 
from this system to OMB and the Department of Justice (DOJ) to obtain 
advice on FOIA and Privacy Act requests for records in this system of 
records.
    Lastly, we added routine use (11), Disclosure in the Course of 
Responding to a Breach of Data, to comply with OMB's guidance, in OMB 
Memorandum 07-16, which advised the Department to add this routine use 
to appropriate systems.
    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: 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 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: March 2, 2016.
James W. Runcie,
Chief Operating Officer, Federal Student Aid.
    For the reasons discussed in the preamble, the Chief Operating 
Officer of 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:
    18-11-11

SYSTEM NAME:
    Office of the Student Loan Ombudsman Records.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION:
    Salesforce Data Center, primary data center in 44521 Hastings 
Drive, Ashburn, VA 20147. The system is accessible via the Internet to 
different categories of users, including Department personnel, 
customers, and designated agents of the Department. As a result, these 
users may be at any location where they have Internet access.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system contains records on individuals who are, were, or may 
be participants in any of the Student Financial Assistance Programs 
under title IV of the Higher Education Act of 1965, as amended (HEA), 
and who request assistance, directly or through a designated third 
party, from the Ombudsman.

CATEGORIES OF RECORDS IN THE SYSTEM:
    This system consists of a variety of records that identify the 
individuals' complaints, requests for assistance, or other inquiries. 
Records include, but are not limited to: Written documentation of the 
individual's complaint, request for assistance, or other comment or 
inquiry; and information pertaining to the student's or parent's title 
IV Student Financial Assistance Program account(s), such as the 
person's name, Social Security number (SSN), date of birth, address, 
telephone number(s), and Federal Student Aid ID (FSA ID). Additionally, 
records will include the name, address, and phone numbers of school(s), 
lender(s), secondary holder(s) or lender(s), guaranty agency(ies), 
servicer(s), and private collection agency(ies), if applicable.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Section 141(f) of the HEA (20 U.S.C. 1018(f)).

PURPOSE(S):
    The information contained in this system will be used for a number 
of purposes related to the duties and responsibilities of the 
Ombudsman, including: Verifying the identities of individuals; 
recording complaints and comments; tracking individual cases through 
final resolution; reporting trends; analyzing the data to recommend 
improvements in Student Financial Assistance Programs; and assisting in 
the resolution of disputes.

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 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 Disclosure. The Department may disclose records to 
Federal agencies, State agencies, schools, lenders, guaranty agencies, 
servicers, and private collection agencies when it is necessary to 
obtain further information about the complaint, request for assistance, 
or other inquiry before it can be resolved.
    (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. 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 parties listed below 
is involved in litigation or ADR, or has an interest in such litigation 
or ADR, the Department may disclose certain records to the parties 
described in paragraphs (b), (c), and (d) of this routine use under the 
conditions specified in those paragraphs:
    (i) The Department, or any component of the Department;
    (ii) Any Department employee in his or her official capacity;
    (iii) Any Department employee in his or her individual capacity if 
the Department of Justice (DOJ) has been requested to or has agreed to 
provide or arrange for representation for the employee;

[[Page 12084]]

    (iv) Any Department employee in his or her individual capacity if 
the Department has agreed to represent the employee; or
    (v) The United States if 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 it 
is relevant and necessary to the litigation or ADR to disclose certain 
records to an adjudicative body before which the Department is 
authorized to appear, to an individual, or to an entity designated by 
the Department or otherwise empowered to resolve or mediate disputes, 
the Department may disclose those records as a routine use to the 
adjudicative body, individual, or entity.
    (d) Disclosures to parties, counsels, representatives, and 
witnesses. If the Department determines that disclosure of certain 
records to a party, counsel, representative, or witness is relevant and 
necessary to the litigation or ADR, the Department may disclose those 
records as a routine use to the party, counsel, representative, or 
witness.
    (5) 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.
    (6) Contract Disclosure. If the Department contracts with an entity 
for the purposes of performing any function that requires disclosure of 
records in this system to employees of the contractor, the Department 
may disclose the records to those employees. Before entering into such 
a contract, the Department 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.
    (7) Research Disclosure. The Department may disclose records to a 
researcher if an appropriate official of 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. The official 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.
    (8) Congressional Member Disclosure. The Department may disclose 
records to a member of Congress from the record of an individual in 
response to an inquiry from the member 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.
    (9) Borrower Complaint Disclosure. If a record is relevant and 
necessary to a borrower complaint regarding participants in any Student 
Financial Assistance Programs under title IV of the HEA, the Department 
may disclose a record from this system of records in the course of 
investigating, fact-finding, or adjudicating the complaint to: Any 
party to the complaint; the party's counsel or representative; a 
witness; or a designated fact-finder, mediator, or other person 
designated to resolve issues or decide the matter. The disclosure may 
only be made during the course of the investigation, fact-finding, or 
adjudication.
    (10) Freedom of Information Act (FOIA) and Privacy Act Advice 
Disclosure. The Department may disclose records from this system of 
records to the DOJ or Office of Management and Budget (OMB) if the 
Department concludes that disclosure is desirable or necessary in 
determining whether particular records are required to be disclosed 
under the FOIA or the Privacy Act.
    (11) Disclosure in the Course of Responding to a Breach of Data. 
The Department may disclose records from this system of records to 
appropriate agencies, entities, and persons when: (a) The Department 
suspects or has confirmed that the security or confidentiality of 
information in this system 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 by 
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 the Department's efforts to respond to 
the suspected or confirmed compromise and prevent, minimize, or remedy 
such harm.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Not applicable.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    These records will be maintained either in hard copy or in an 
electronic database.

RETRIEVABILITY:
    Records are indexed by SSN, name, date of birth, and case tracking 
number.

SAFEGUARDS:
    Access to and use of these records shall be limited to those 
persons whose official duties require access. This includes staff 
members of the Office of the Student Loan Ombudsman, other Department 
offices, and agents of the Department. All physical access to the site 
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 offers a high degree of resistance to tampering 
and circumvention. This security system limits data access to 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 unique user IDs with personal identifiers. All 
interactions by individual users with the system are recorded.

RETENTION AND DISPOSAL:
    The records are retained for 10 years after cut off on close of 
case or final determination, and then destroyed in accordance with the 
Department's records retention and disposition schedule 052 FSA 
Ombudsman Case Files.

SYSTEM MANAGER(S) AND ADDRESS:
    Ombudsman, Federal Student Aid, U.S. Department of Education, 830 
First Street NE., Room 41I1, Washington, DC 20202.

NOTIFICATION PROCEDURE:
    If you wish to determine whether a record exists regarding you in 
the system of records, contact the system manager. Your request must 
meet the requirements of the Department's Privacy Act regulations at 34 
CFR 5b.5, including proof of identity.

RECORD ACCESS PROCEDURES:
    If you wish to gain access to a record regarding you in the system 
of records, contact the system manager. Your request must meet the 
requirements of the Department's Privacy Act regulations at 34 CFR 
5b.5, including proof of identity.

[[Page 12085]]

CONTESTING RECORD PROCEDURES:
    If you wish to contest the content of a record regarding you in the 
system of records, contact the system manager. Your request must meet 
the requirements of the Department's Privacy Act regulations at 34 CFR 
5b.7.

RECORD SOURCE CATEGORIES:
    Information is obtained from the individuals (e.g., borrowers), 
Federal agencies, State agencies, schools, lenders, private collection 
agencies, and guaranty agencies.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 2016-05015 Filed 3-7-16; 8:45 am]
 BILLING CODE 4000-01-P