Privacy Act of 1974; System of Records, 41979-41987 [2019-17615]

Agencies

• DEPARTMENT OF EDUCATION

[Federal Register Volume 84, Number 159 (Friday, August 16, 2019)]
[Notices]
[Pages 41979-41987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17615]


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DEPARTMENT OF EDUCATION

[Docket ID ED-2017-FSA-0083]


Privacy Act of 1974; System of Records

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice of a modified system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended 
(Privacy Act), the Department of Education (Department) modifies the 
system of records entitled ``Common Origination and Disbursement (COD) 
System'' (18-11-02).
    The COD System is a system of records about applicants for, and 
recipients of, a Federal grant or loan under any of the Federal student 
financial assistance programs authorized under title IV of the Higher 
Education Act of 1965, as amended (HEA). The Department uses the COD 
system of records to document origination and disbursement of loans, 
account for awarded grants, reconcile school cash drawdowns from the 
U.S. Department of the Treasury to individual student disbursements, 
and ensure that institutions of higher education participating in the 
HEA programs receive the appropriate amount of funds during the 
respective time periods.

DATES: Submit your comments on or before September 16, 2019.
    This modified system of records will become applicable upon 
publication in the Federal Register on August 16, 2019. New routine use 
disclosures (1)(i), (1)(j), (1)(k), and 14, and modified routine uses 
(1)(f), (4)(c), (5)(a), (10), (11), (12), and (13) outlined in the 
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES will become applicable on September 
16, 2019, unless the modified system of records notice needs to be 
changed as a result of public comment. The Department will publish any 
significant changes resulting from public comment.

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 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 modified system of records, 
address them to: Director, COD System, Program Management Services, 
Federal Student Aid (FSA), U.S. Department of Education, Union Center 
Plaza (UCP), Room 112J2, 830 First Street NE, Washington, DC 20202-
5454.

    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 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: Margaret M. Glick, Director, COD 
System, Program Management Services, FSA, U.S. Department of Education, 
UCP, Room 64E1, 830 First Street NE, Washington, DC 20202-5454. 
Telephone: (202) 377-4563.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), you may call the Federal Relay Service (FRS) at 1-800-
877-8339.

SUPPLEMENTARY INFORMATION: 
    Among other purposes described in this notice, the COD System 
includes information needed for the Department to administer the 
Federal grant and loan HEA programs. The COD System contains records 
associated with Federal grant and loan origination activities under 
HEA-authorized programs for which the Department provides funds 
directly to participating institutions of higher education on a student 
or recipient level. Such activities include establishing an 
individual's eligibility to receive a Federal grant or loan under these 
HEA-authorized programs. The system also contains records evidencing 
the disbursement of program funds by participating institutions of 
higher education to those individuals whose eligibility has been 
previously established.
    Records maintained in the COD System include information provided 
by recipients of title IV, HEA program assistance, the legal parents of 
dependent recipients, endorsers, and the spouses of married, 
independent student borrowers, and references, as required. The records 
contain individually identifying information, including, but not 
limited to: Name, Social Security number (SSN), address, date of birth, 
email address, and citizenship status. The COD System also assists the 
Department in administering the title IV Campus Based Programs, which 
include the Federal Perkins Loan, Federal Supplemental Educational 
Opportunity Grant (FSEOG), and Federal Work-Study (FWS) Programs.
    This notice of a modified system of records for the COD System: 
Updates the security classification, system locations, and system 
manager; expands the categories of individuals covered by the system 
and the categories of records maintained in the system; expands the 
system's purposes; and updates the current programmatic routine use 
disclosures needed to carry out the Department's responsibilities under 
title IV of the HEA. This notice also updates some of the wording of 
the routine uses in this system of records notice to standardize it 
with the wording of the same routine uses in many of the Department's 
other systems of records notices, deletes a standard routine use

[[Page 41980]]

that is no longer needed, and adds a new standard routine use that is 
needed to comply with Office of Management and Budget requirements on 
data breaches involving personally identifiable information. This 
notice also updates the policies and practices for the storage of 
records, the policies and practices for retrieval of records, the 
policies and procedures for retention and disposal of records, and the 
record source categories. The Department is also modifying the sections 
of the notice entitled ``RECORD ACCESS PROCEDURES'' and ``NOTIFICATION 
PROCEDURES'' and is adding a new section entitled ``HISTORY.''
    The Department is updating the section of the notice entitled 
``SECURITY CLASSIFICATION'' by revising it from ``none'' to 
``unclassified'' and the section of the notice entitled ``SYSTEM 
LOCATION'' by adding additional locations of records, and removing the 
locations no longer utilized. The Department is changing the section of 
the notice entitled ``SYSTEM MANAGER(S)'' to reflect that the Director 
of the COD System is the system manager.
    The Department is updating the section of the notice entitled 
``PURPOSE(S) OF THE SYSTEM'' to expand the system's purposes related to 
students and borrowers. The Department is adding additional purposes to 
identify individuals who: Completed a Special Direct Consolidation Loan 
application and promissory note; completed counseling in the Direct 
Loan or Teacher Education Assistance for College and Higher Education 
(TEACH) Grant programs; filed an electronic request to repay a Direct 
Loan under an income-based or income contingent (hereafter ``income-
driven'') repayment plan; or filed an electronic Federal Direct 
Consolidation Loan application and promissory note. The Department also 
is including an additional purpose to track the level of study, the 
Classification of Instructional Program (CIP) code (field of study), 
and the educational program length in which the borrower enrolled to 
track the limit on eligibility for Direct Subsidized Loans to no more 
than 150 percent of the published length of the educational program in 
which the student is enrolled, and to enable Federal Loan Servicers to 
determine the periods for which a borrower who enrolls after reaching 
the 150 percent limit will be responsible for the accruing interest on 
outstanding Direct Subsidized Loans, and also for tracking student 
enrollments by educational program for purposes of determining 
educational program outcomes, including using that information to 
obtain average earnings of students by educational program from another 
Federal agency.
    The Department also is expanding the system's purposes related to 
institutions of higher education participating in and administering 
title IV, HEA programs to include assisting an institution of higher 
education with student loan default prevention and with reconciling its 
cash drawdowns from the U.S. Department of the Treasury with its 
reported disbursements and to ensure that the institution receives the 
appropriate amount of dollars during the respective time period. Also, 
the Department is revising a purpose to clarify that an institution of 
higher education can request online credit checks to determine a 
borrower's eligibility for title IV, HEA Federal Direct PLUS Loans.
    The Department also is expanding the system's purposes related to 
the Department's oversight of title IV, HEA programs to include 
performing data analytics and reporting to inform and optimize the 
effectiveness of the Department's student financial assistance 
programs.
    The Department is expanding the section of the notice entitled 
``CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM'' to cover 
individuals who apply for a Federal grant or applied for a loan under 
the Federal Perkins Loan Program, the Federal Family Education Loan 
(FFEL) Program, the Federal Insured Student Loan (FISL) Program, the 
Auxiliary Loans to Assist Students (ALAS) Program, the Health 
Professions Student Loans (HPSL) Program, and the Health Education 
Assistance Loan (HEAL) Program. This section also has been expanded to 
contain student enrollment data on title IV recipients and cohort 
default rate (CDR) by institution of higher education.
    The Department is modifying the section entitled ``CATEGORIES OF 
RECORDS IN THE SYSTEM'' to expand the data elements maintained in the 
system. For individuals who apply for or receive a Federal grant or 
loan under the programs authorized by title IV of the HEA the 
Department is now maintaining additional demographic information, 
including Federal income tax information (tax return status, adjusted 
gross income, Internal Revenue Service exemptions, and tax year), 
family size, marital status, and spouse identifiers. For recipients of 
Direct Loans, FFEL Program loans, Perkins Loans, and FISL Program 
loans, the Department is expanding borrower loan information to include 
the period from the origination of the loan through final payment, and 
milestones, including, but not limited to: Cancellation, consolidation, 
discharge, or other final disposition including details such as loan 
amount, disbursements, balances, loan status, repayment plan and 
related information, collections, claims, deferments, forbearances, and 
refunds. On Federal grant recipients, the Department is expanding 
information to include grant amounts, grant awards, verification 
status, lifetime eligibility used (LEU), Iraq and Afghanistan Service 
Grant (IASG) eligible veteran's dependent indicator, Children of Fallen 
Heroes Scholarship eligibility indicator, and Pell over-award 
indicator.
    The Department is further expanding the section entitled 
``CATEGORIES OF RECORDS IN THE SYSTEM'' to include Direct Loan award 
information; FFEL Loan Program records including demographic and 
contact information; Pell Grant overpayment collection information; 
promissory notes, Direct PLUS Loan request, endorser addendum, and 
confirmation of counseling completion by Direct Loan borrowers and 
TEACH Grant program recipients; PLUS Loan credit report information; 
applicant identifier information for an electronic request to repay a 
Direct Loan under an income-driven repayment plan and endorser/spouse 
information; Electronic Direct Consolidation Loan applicant identifier 
information; information concerning the date of any default on a loan; 
and demographic and contact information for borrower accounts that are 
assigned to a Federal Loan Servicer(s). This section has also been 
expanded to include data about students that is provided by 
institutions of higher education that apply and are accepted by the 
Department for participation in an experiment under the Experimental 
Sites Initiatives. Also, this section has been expanded to include data 
elements that are used to perform data analysis regarding improper 
payments. Additionally, this section has been expanded to contain 
records on the level of study, CIP code (field of study), and published 
length of an educational program in which a student receiving title IV, 
HEA Federal student aid is enrolled.
    An appendix has also been added to the notice detailing the data in 
this system of records as a result of exchanges of data within FSA.
    The section entitled ``RECORD SOURCE CATEGORIES'' has been updated 
to include information that is provided by spouses of applicants who 
request to repay a Direct Loan under an income-driven repayment plan 
and that is obtained from Federal Direct

[[Page 41981]]

Consolidation Loan application forms and promissory notes. Also, the 
section has been updated to specify that completion information for 
Direct Loan and TEACH Grant program counseling is received through 
StudentLoans.gov (the student-facing portion of the website) or from 
institutions of higher education, or both. The section also has been 
updated to indicate that the system receives information on PLUS LOAN 
applicants from credit reporting agencies. The section has been further 
updated to include other persons or entities from which data is 
obtained under the routine uses set forth in the system of records 
notice. Additionally, this section has been updated to include various 
Privacy Act systems of records notices maintained by the Department 
that share information with the COD System.
    The Department is making a number of changes which expand the 
current routine use disclosures in the system.
    First, the Department is revising programmatic routine use (1)(f) 
to clarify that an institution of higher education can request online 
credit checks to determine a borrower's eligibility for title IV, HEA 
Federal Direct PLUS Loans.
    Second, the Department is adding programmatic routine use (1)(i) to 
allow the Department to disclose records to institutions of higher 
education as to whether borrowers or students have completed the 
required counseling in the Direct Loan or TEACH Grant programs to 
assist institutions of higher education with student loan default 
prevention.
    Third, the Department is adding programmatic routine use (1)(j) to 
permit the Department to disclose records to guaranty agencies, 
educational institutions, financial institutions and servicers, and to 
Federal and State agencies in order to assist the Department in 
complying with requirements that limit eligibility for Direct 
Subsidized Loans.
    Fourth, the Department is adding programmatic routine use (1)(k) to 
permit the Department to disclose records to credit reporting agencies 
to assist the Department with the determination of eligibility for a 
PLUS Loan.
    The Department is deleting prior routine use (3), which was 
entitled ``Disclosure for Use by Other Law Enforcement Agencies,'' 
because Program Management Services within Federal Student Aid (FSA) 
that is responsible for managing this system of records is not a law 
enforcement agency. Further, another routine use in this system of 
records and subsection (b)(7) of the Privacy Act will continue to 
permit FSA to disclose records for law enforcement purposes provided 
their conditions are met.
    The Department is modifying routine use (4)(c) entitled 
``Litigation and Alternative Dispute Resolution (ADR) Disclosure'' to 
insert the word ``person'' in place of the word ``individual'' to avoid 
confusion because ``individual'' is a defined term in the Privacy Act.
    The Department is also modifying routine use (5)(a) entitled 
``Employment, Benefit, and Contracting Disclosure'' to add language to 
describe the records as ``civil, criminal, or other relevant 
enforcement or other pertinent records'' that are maintained by a 
Federal, State, or local agency, or by another public authority or 
professional organization, to which the Department may disclose records 
under this routine use if necessary to obtain information in such an 
agency's or organization's records that would be relevant to a 
Departmental decision involving personnel actions, the issuance of 
benefits, or the letting of a contract.
    The Department is modifying routine use (10) entitled ``Contract 
Disclosure'' and routine use (11) entitled ``Research Disclosure'' to 
remove the language therein that had referenced ``Privacy Act 
safeguards.'' The Department revised the language in these routine uses 
to clarify that contractors and researchers to whom disclosures are 
made under these routine uses will be required to agree to establish 
and maintain safeguards to protect the security and confidentiality of 
the disclosed records. With respect to routine use (10), the Department 
also removed language that had indicated that the Department would 
require these safeguards ``before entering into such a contract'' to 
instead indicate that these safeguards will be required ``as part of 
such a contract.'' With respect to routine use (11), the Department 
also revised this routine use to indicate that an appropriate official 
of the Department must determine that the individual or organization to 
which the disclosure would be made is qualified to carry out specific 
research related to the functions or purposes of the system of records 
and that the disclosure and research must be consistent with the uses 
and restrictions set forth in Sections 483(a)(3)(E), 485B(d)(2), and 
485B(d)(5)(B) of the HEA, and the Family Educational Rights and Privacy 
Act, 20 U.S.C. 1232g and 34 CFR part 99.
    The Department is modifying routine use (12) to permit the 
Department to disclose records to the Congressional Budget Office, in 
addition to the Office of Management and Budget (OMB), as necessary to 
fulfill the requirements of the Federal Credit Reform Act of 1990, as 
amended, in accordance with 2 U.S.C. 661b.
    Pursuant to the requirements in OMB Memorandum 17-12 entitled 
``Preparing for and Responding to a Breach of Personally Identifiable 
Information,'' the Department is modifying the routine use (13) 
entitled ``Disclosure in the Course of Responding to a Breach of 
Data.''
    Finally, the Department is adding a new routine use (14) to permit 
the Department to disclose records from this system, in compliance with 
the requirements set forth in OMB Memorandum 17-12, to another Federal 
agency or Federal entity, when the Department determines that 
information from this system of records is reasonably necessary to 
assist the recipient agency or entity in (a) responding to a suspected 
or confirmed breach or (b) preventing, minimizing, or remedying the 
risk of harm to individuals, the recipient agency or entity (including 
its information systems, programs, and operations), the Federal 
Government, or national security, resulting from a suspected or 
confirmed breach.
    The Department is updating the section entitled ``POLICIES AND 
PRACTICES FOR STORAGE OF RECORDS'' to include the storage of electronic 
student demographic, and title IV aid data information for the entire 
Federal Student Aid lifecycle, from application through loan payoff. 
The section is also being updated to include the storage of electronic 
master promissory notes and the hard disk storage of electronic Special 
Direct Consolidation Loan applications and promissory notes, electronic 
requests to repay a Direct Loan under an income-driven repayment plan, 
and Federal Direct Consolidation Loan applications and promissory 
notes.
    The Department is updating the section entitled ``POLICIES AND 
PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS'' to explain that the 
applicable Department records schedule is being amended, pending 
approval by the National Archives and Records Administration (NARA).
    Finally, the Department is modifying the sections entitled ``RECORD 
ACCESS PROCEDURES'' and ``NOTIFICATION PROCEDURES'' to specify the 
necessary particulars that an individual must provide when making a 
request for access to or notification of a record. The Department is 
also adding a new section entitled ``HISTORY'' in compliance with the 
requirements in OMB Circular No. A-108.

[[Page 41982]]

    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

    Dated: August 12, 2019.
Mark A. Brown,
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 a modified system of records to read 
as follows:
SYSTEM NAME AND NUMBER:
    Common Origination and Disbursement (COD) System (18-11-02).

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Program Management Services, Federal Student Aid (FSA), U.S. 
Department of Education (Department), Union Center Plaza (UCP), Room 
64E1, 830 First Street NE, Washington, DC 20202-5454.
    Amazon Web Services (AWS), 1200 12th Ave., Suite 1200, Seattle, WA 
98114. (This is the Computer Center for the COD application, where all 
electronic COD information is processed and stored.) This information 
includes data about individuals who completed counseling required by 
the William D. Ford Federal Direct Loan (Direct Loan) and the Teacher 
Education Assistance for College and Higher Education (TEACH) Grant 
programs, and who apply for or receive a Federal grant or loan under 
one of the programs authorized by title IV of the Higher Education Act 
of 1965, as amended (HEA), including, but not limited to: The Direct 
Loan Program, the Federal Family Education Loan (FFEL) Program, the 
Campus-Based Programs (Federal Perkins Loans, Federal Work Study, and 
Federal Supplemental Education Opportunity Grants (FSEOG)), the Federal 
Pell Grant Program, the Academic Competitiveness Grant (ACG) Program, 
the National Science and Mathematics Access to Retain Talent (National 
SMART) Grant Program, the TEACH Grant Program, the Iraq and Afghanistan 
Service Grant (IASG) Program, the Federal Insured Student Loan (FISL) 
Program, the Auxiliary Loans to Assist Students (ALAS) Program, the 
Health Profession Student Loans (HPSL) Program, and the Health 
Education Assistance Loans (HEAL) Program. Also included are: Direct 
Loan electronic promissory notes, TEACH Agreement to Serve (ATS) 
documents, PLUS Loan endorser addendums, Special Direct Consolidation 
Loan applications and promissory notes, electronic requests to repay a 
Direct Loan under an income-driven repayment plan, Federal Direct 
Consolidation Loan application and promissory notes, student enrollment 
information which includes dates and statuses (i.e., full-time or part-
time).
    Accenture, 22451 Shaw Road, Sterling, VA 20166-4319. (The COD 
Sterling Cloud-based Operations is located here.)
    Accenture DC, 810 First Street NE, Washington, DC 20202-4227. (This 
is the COD Operations Center.)
    Atlanta Federal Records Center, National Archives and Records 
Administration (NARA), 4712 Southpark Blvd., Ellenwood, GA 30294. (This 
is where master promissory notes (MPN), Endorser Addenda, and Power of 
Attorney documents are stored.)
    The following five listings are the locations of the COD Customer 
Service Centers:
    ASM Research 2429 Military Road, Suite 200, Niagara Falls, NY 
14304-1551. (This center images and stores all of the Direct Loan paper 
Master Promissory Notes (MPNs) and Endorser Addenda);
    Senture, LLC, 4255 W Highway 90 Monticello, KY 42633-3398;
    Senture, LLC 460 Industrial Blvd., London, KY 40741-7285;
    Cooney Solutions Group, 8415 Datapoint Drive, San Antonio, Texas 
78229-3298; and
    Veteran Call Center, 53 Knightsbridge Rd., Suite 201, Piscataway, 
NJ 08854-3925.

SYSTEM MANAGER(S):
    Director, COD System, Program Management Services, Federal Student 
Aid (FSA), U.S. Department of Education (Department), Union Center 
Plaza (UCP), Room 64E1, 830 First Street NE, Washington, DC 20202-5454.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    This system of records is authorized under title IV of the HEA, 20 
U.S.C. 1070 et seq.

PURPOSE(S) OF THE SYSTEM:
    The information contained in this system is maintained for the 
following purposes related to students and borrowers:
    (1) To determine recipient eligibility and benefits under the title 
IV, HEA programs;
    (2) To store electronic data and documentation, including 
promissory notes and other agreements, that evidence the existence of a 
legal obligation to repay funds disbursed under the title IV, HEA 
programs;
    (3) To identify whether an individual may have received a title IV, 
HEA Federal grant or loan at more than one educational institution for 
the same enrollment period in violation of the title IV program 
regulations;
    (4) To identify whether an individual may have exceeded the annual 
award limits under title IV, HEA Federal grant or loan programs in 
violation of title IV program regulations;
    (5) To identify an individual who completed a Special Direct 
Consolidation Loan application and promissory note;
    (6) To identify an individual who completed counseling in the 
Direct Loan or TEACH Grant programs;
    (7) To identify an individual who completed an electronic request 
to repay a Direct Loan under an income-based or income contingent 
(hereafter ``income-driven'') repayment plan;
    (8) To identify an individual who completed an electronic Federal 
Direct Consolidation Loan application and promissory note; and
    (9) To track the level of study, Classification of Instructional 
Program (CIP) code (field of study), and educational program length to 
limit eligibility for Direct Subsidized Loans to no more than 150 
percent of the published length of the educational program in which the 
student is enrolled, to enable Federal Loan Servicers to determine the 
periods for which a borrower who enrolls after reaching the 150 percent 
limit will be responsible for the accruing interest on outstanding 
Direct Subsidized Loans, and also for tracking student

[[Page 41983]]

enrollments by educational program for purposes of determining 
educational program outcomes, including using that information to 
obtain average earnings of students by educational program from another 
Federal agency.
    The information in this system is also maintained for the following 
purposes relating to institutions of higher education participating in 
and administering title IV, HEA programs:
    (1) To enable an institution of higher education to reconcile, on 
an aggregate and recipient-level basis, the amount of title IV, HEA 
Federal grant and Direct Loan funds that an institution received for 
disbursements it made to, or on behalf of, eligible students (including 
reconciling verification codes, reconciling the funds received with 
disbursements made by type of funds received, and making necessary 
adjustments);
    (2) To enable an institution of higher education to request online 
credit checks to determine the eligibility of a borrower for title IV, 
HEA Federal Direct PLUS Loans;
    (3) To assist an institution of higher education, a software 
vendor, or a third-party servicer with questions about a title IV, HEA 
Federal grant or loan;
    (4) To assist an institution of higher education with student loan 
default prevention; and
    (5) To reconcile an institution of higher education's cash 
drawdowns from the U.S. Department of the Treasury with its reported 
disbursements and to ensure that the institution of higher education 
receives the appropriate amount of funds during the respective time 
period.
    The information in this system is also maintained for the following 
purposes relating to the Department's oversight of title IV, HEA 
programs:
    (1) To support the investigation of possible fraud and abuse and to 
detect and prevent fraud and abuse in the title IV, HEA Federal grant 
and loan programs;
    (2) To confirm that an institution of higher education, or a 
program offered by an institution of higher education, is eligible to 
receive title IV, HEA program funds;
    (3) To set and adjust program funding authorization levels for each 
institution;
    (4) To enforce institutional compliance with Department reporting 
deadlines;
    (5) To apply appropriate title IV, HEA funding controls; and
    (6) To perform data analytics and reporting to inform and optimize 
the effectiveness of the Department's student financial assistance 
programs.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system contains records of individuals who apply for a Federal 
grant or loan under one of the programs authorized under title IV of 
the HEA, including, but not limited to the: (1) Federal Pell Grant 
Program; (2) Federal Perkins Loans Program; (3) ACG Program; (4) 
National SMART Grant Program; (5) TEACH Grant Program; (6) Iraq and 
Afghanistan Service Grant Program; (7) Direct Loan Program, which 
includes Federal Direct Stafford/Ford Loans, Federal Direct 
Unsubsidized Stafford/Ford Loans and Federal Direct PLUS Loans and 
Federal Direct Consolidation Loans; (8) FFEL Program; (9) FISL Program; 
(10) ALAS Program; (11) HPSL Program; and (12) the HEAL Program.
    The COD System also contains records of individuals who are title 
IV recipients and are currently or were previously enrolled at an 
institution of higher education, and cohort default rates (CDR) by 
institution of higher education.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records in the COD System include, but are not limited to, the 
following data about individuals who apply for or receive a Federal 
grant or loan under one of the programs authorized under title IV of 
the HEA:
    (1) Identifier information, including name, Social Security number 
(SSN), and date of birth (DOB);
    (2) Demographic information, including address, email address, 
driver's license number, telephone number, citizenship status, 
dependency status, estimated family contribution, cost of attendance, 
postsecondary school identifier, Federal income tax information (tax 
return status, adjusted gross income, Internal Revenue Service 
exemptions, and tax year), family size, marital status, spousal 
identifiers, and enrollment information;
    (3) Borrowers' loan(s) information including information about 
recipients of Direct Loan, FFEL program loans, Perkins Loans, and FISL 
program loans. This includes the period from the origination of the 
loan through final payment, and milestones, including, but not limited 
to: Cancellation, consolidation, discharge, or other final disposition 
including details such as loan amount, disbursements, balances, loan 
status, repayment plan and related information, collections, claims, 
deferments, forbearances, and refunds;
    (4) Information about students receiving Federal grants, including 
recipients of Pell Grants, ACG, National SMART Grants, TEACH Grants, 
Iraq and Afghanistan Service Grants, and including grant amounts, grant 
awards, verification status, lifetime eligibility used (LEU), IASG 
eligible veteran's dependent indicator, Children of Fallen Heroes 
Scholarship eligibility indicator, and the Pell Grant over-award 
indicator;
    (5) Direct Loan awards. This includes loan amounts and dates of 
disbursements;
    (6) FFEL Loan program records including demographic and contact 
information from the guaranty agency that guarantees the borrower's 
FFEL loan(s) and the lender(s), holder(s), and servicer(s) of the 
borrower's loan(s);
    (7) Pell Grant overpayment collection information;
    (8) Direct Loan promissory notes including promissory note 
identification numbers, loan type, current servicer, principal balance, 
and the accrued interest of Direct Loans or Department-held FFEL Loans;
    (9) TEACH Agreements to Serve;
    (10) Promissory notes, Direct Loan Entrance Counseling forms, 
Federal Student Loan Exit Counseling forms, PLUS Loan Counseling forms, 
Direct PLUS Loan Requests, endorser addendums, and counseling in the 
Direct Loan and TEACH Grant programs, such as the date that applicant 
completed counseling;
    (11) PLUS Loan credit report information;
    (12) Applicant identifier information for an electronic request to 
repay a Direct Loan under an income-driven repayment plan and endorser/
spouse information, such as the SSN, date that applicant completed the 
income-driven repayment plan application, and current loan balances;
    (13) Electronic Direct Consolidation Loan borrower identifier 
information, such as the borrower's SSN, the date that borrower 
completed the Federal Direct Consolidation Loan application and 
promissory note, and current loan balances;
    (14) Information concerning the date of any default on a loan;
    (15) Demographic and contact information for borrower accounts that 
are assigned to the Federal Loan Servicer(s) for collection of the 
borrower's title IV, HEA loans.
    The system also contains the following data about students provided 
by institutions of higher education that participate in an experiment 
under the Experimental Sites Initiative: award year, experiment number, 
Office of Postsecondary Education identification number (OPEID), 
student SSN, student last name, and any data collection instrument 
elements authorized under

[[Page 41984]]

the Information Collection Request associated with each experiment.
    In addition to identifying and demographic information listed above 
the following data elements that are used to perform data analysis 
regarding improper payments: Internal Identifier (ID), Email Modified 
Date, Flag for Email Verified, Email Verified Date, Challenge Question/
Answers (CQA), Password, Notes, Security universally unique identifier 
(UUID), Social Security Administration Match, Quarantined Status, 
Language Preference, Account Disabled by FSA, Account Disabled by User, 
PAS Suspect Activity Flag, Date CQA becomes unlocked, Keys for 
Verification, Short Message Service (SMS) Opted In Status, Flag for SMS 
Verified, SMS Verified Date, Date User Accepted Disclaimer, Event ID, 
Session ID, Event Type, User UUID, App ID, Referrer App ID, Uniform 
Resource Locator (URL), Referrer URL, Authentication Flag, Remote 
internet Protocol (IP) address, Client IP address, User Agent String, 
Timestamp, WebSEAL Version, UUID, Authorization Token, Challenge 
Question 1, Response 1, Challenge Question 2, Response 2, Challenge 
Question 3, Response 3, Challenge Question 4, Response 4, Challenge 
Question 5, Response 5, and Created Time.
    The system also contains records on the level of study, CIP code 
(field of study), and published length of an educational program in 
which a student receiving title IV, HEA Federal student aid is enrolled 
to assist the Department in enforcing the limit on the borrower's 
eligibility for Direct Subsidized Loans to no more than 150 percent of 
the published length of the educational program in which the student is 
enrolled, and to determine the periods for which a borrower who enrolls 
after reaching the 150 percent limit will be responsible for the 
accruing interest on outstanding Direct Subsidized Loans.
    The Appendix contains a detailed description of the data added to 
this system of records as a result of the exchanges of data within FSA.

RECORD SOURCE CATEGORIES:
    This system includes records on individuals who have received title 
IV, HEA program assistance. These records include information provided 
by recipients of title IV, HEA program assistance, the parents of 
dependent recipients, spouses of applicants who request to repay a 
Direct Loan under an income-driven repayment plan, and from Federal 
Direct Consolidation Loan application forms and promissory notes. This 
system also includes Federal grant and Direct Loan origination and 
disbursement records provided to the Department by institutions of 
higher education or their agents. The system also receives completion 
information for Direct Loan and TEACH Grant program counseling through 
StudentLoans.gov (the student-facing portion of the website) or from 
institutions of higher education, or both.
    The system also receives information on PLUS Loan applicants from 
credit reporting agencies.
    The Central Processing System (CPS) (covered by the Department's 
Privacy Act of 1974, as amended (Privacy Act) system of records notice 
entitled ``Federal Student Aid Application File'' (18-11-01)) 
electronically sends the COD System the Demographic Data Exchange (DDE) 
file to validate all CPS-processed Free Application for Federal Student 
Aid (FAFSA) records with the Federal grant and Direct Loan disbursement 
data processed through the COD System.
    The National Student Loan Data System (NSLDS) (covered by the 
Department's Privacy Act system of records notice entitled ``National 
Student Loan Data System'' (18-11-06)) electronically sends the COD 
System student aid data for the Special Direct Consolidation Loan 
borrowers, Financial Awareness Counseling, the income-driven repayment 
plan application processed through the COD System, the Federal Direct 
Loan Consolidation Loan application and promissory notes, and the data 
to perform analytics and reporting to inform and optimize the 
effectiveness of the Department's student financial assistance 
programs.
    The Financial Management System (FMS) (covered by the Department's 
Privacy Act system of records notice entitled ``Financial Management 
System (FMS)'' (18-11-17)) sends the COD System funding information at 
the institutional level, refunds of cash, and reallocation information.
    The Postsecondary Education Participants System (PEPS) (covered by 
the Department's Privacy Act system of records notice entitled 
``Postsecondary Education Participants System (PEPS)'' (18-11-09)) 
sends the COD System school demographic information.
    The Common Services for Borrowers system (CSB) (covered by the 
Privacy Act system of records notice entitled ``Common Services for 
Borrowers (CSB)'' (18-11-16)) sends the COD System discharge 
information, payments to servicer data, and payments on grant 
overpayments that are being serviced by FSA's Default Division.
    The system may also obtain information from other persons or 
entities from which data is obtained under routine uses set forth 
below.

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. The 
Department may make these disclosures on a case-by-case basis or, if 
the Department has complied with the computer matching requirements of 
the Privacy Act, under a computer matching agreement.
    (1) Program Disclosures. The Department may disclose records from 
the system of records for the following program purposes:
    (a) To verify the identity of the recipient involved or the 
accuracy of the record, or to assist with the determination of program 
eligibility and benefits, the Department may disclose records to 
institutions of higher education, financial institutions, third-party 
servicers, and Federal, State, or local agencies;
    (b) To store electronic data that supports the existence of a legal 
obligation to repay funds disbursed under title IV, HEA programs, 
including documentation such as promissory notes and other agreements, 
the Department may disclose records to institutions of higher 
education, third-party servicers, and Federal agencies;
    (c) To identify whether an individual may have received a title IV, 
HEA Federal grant or loan at more than one institution of higher 
education for the same enrollment period in violation of title IV, HEA 
regulations, the Department may disclose records to institutions of 
higher education, third-party servicers, and Federal, State, or local 
agencies;
    (d) To identify whether an individual may have exceeded the annual 
award limits under the title IV, HEA Federal grant or Direct Loan 
programs in violation of title IV, HEA regulations, the Department may 
disclose records to institutions of higher education, third-party 
servicers, and Federal agencies;
    (e) To enable institutions of higher education to reconcile, on an 
aggregate and recipient-level basis, the amount of title IV, HEA 
Federal grant and Direct Loan funds that an institution received with 
the disbursements it made to, or on behalf of, eligible students 
(including reconciling verification codes,

[[Page 41985]]

reconciling the funds received with disbursements made by type of funds 
received, and making necessary corrections and adjustments), the 
Department may disclose records to institutions of higher education, 
third-party servicers, and Federal, State, or local agencies;
    (f) To enable an institution of higher education to request online 
credit checks to determine the eligibility of applicants or borrowers 
for a title IV, HEA Federal Direct PLUS Loan, disclosures may be made 
to institutions of higher education, third-party servicers, credit 
reporting agencies, and Federal agencies;
    (g) To assist individuals, institutions of higher education, third-
party servicers, or software vendors with questions about a title IV, 
HEA Federal grant or loan, disclosures may be made to institutions of 
higher education, software vendors, third-party servicers, and Federal, 
State, or local agencies;
    (h) To support the investigation of possible fraud and abuse and to 
detect and prevent fraud and abuse in title IV, HEA Federal grant and 
loan programs, disclosures may be made to institutions of higher 
education, third-party servicers, and Federal, State, or local 
agencies;
    (i) To assist institutions of higher education with student loan 
default prevention, disclosures may be made to institutions of higher 
education as to whether a borrower or student has completed required 
counseling in the Direct Loan or TEACH Grant programs;
    (j) To assist the Department in complying with requirements that 
limit eligibility for Direct Subsidized Loans to no more than 150 
percent of the published length of the educational program in which the 
student is enrolled, and to determine when a borrower who enrolls after 
reaching the 150 percent limit will be responsible for the interest 
accruing on outstanding Direct Subsidized Loans thereafter, the 
Department may disclose records to guaranty agencies, educational 
institutions, financial institutions and servicers, and to Federal and 
State agencies; and
    (k) To assist the Department in determining eligibility for a PLUS 
Loan, disclosures may be made to credit reporting agencies.
    (2) Congressional Member Disclosure. The Department may disclose 
the records of an individual to a member of Congress or the member's 
staff when necessary to respond 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.
    (3) Enforcement Disclosure. If information in this system of 
records indicates, either on its face or in connection with other 
information, a violation or potential violation of any applicable 
statute, regulation, or order of a competent authority, the Department 
may disclose the relevant records to the appropriate agency, whether 
foreign, Federal, State, tribal, or local, charged with investigating 
or prosecuting that violation or charged with enforcing or implementing 
the statute, regulation, or order issued pursuant thereto.
    (4) Litigation and Alternative Dispute Resolution (ADR) Disclosure.
    (a) Introduction. In the event that one of the following parties 
listed in sub-paragraphs (i) through (v) is involved in judicial or 
administrative litigation or ADR, or has an interest in judicial or 
administrative litigation or ADR, the Department may disclose certain 
records from this system of 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 if 
the Department of Justice (DOJ) has been requested to or has agreed to 
provide or arrange for representation of the employee;
    (iv) Any Department employee in his or her individual capacity when 
the Department has agreed to represent the employee;
    (v) The United States when the Department determines that the 
litigation is likely to affect the Department or any of its components.
    (b) Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
judicial or administrative litigation or ADR, the Department may 
disclose those records as a routine use to the DOJ.
    (c) Adjudicative Disclosure. If the Department determines that it 
is relevant and necessary to litigation or ADR to disclose certain 
records from this system of records to an adjudicative body before 
which the Department is authorized to appear or to a person or 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, person, or entity.
    (d) Disclosure to Parties, Counsel, 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 judicial or administrative litigation or ADR, the Department may 
disclose those records as a routine use to the party, counsel, 
representative, or witness.
    (5) Employment, Benefit, and Contracting Disclosure.
    (a) For Decisions by the Department. The Department may disclose 
information from this system of records to a Federal, State, or local 
agency, or to another public authority or professional organization, 
maintaining civil, criminal, or other relevant enforcement or other 
pertinent records, if necessary to obtain information relevant to a 
Department decision concerning the hiring or retention of an employee 
or other personnel action; the issuance of a security clearance; the 
letting of a contract; or the issuance of a license, grant, or other 
benefit.
    (b) For Decisions by Other Public Agencies and Professional 
Organizations. The Department may disclose records to a Federal, State, 
local, or foreign agency 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.
    (6) Employee Grievance, Complaint, or Conduct Disclosure. If a 
record is relevant and necessary to a grievance, complaint, or 
disciplinary proceeding involving a present or former employee of the 
Department, the Department may disclose the record in the course of 
investigation, fact-finding, or adjudication to any party to the 
grievance, complaint, or action; to the party's counsel or 
representative; to a witness; or to a designated fact-finder, mediator, 
or other person designated to resolve issues or decide the matter. The 
disclosure may only be made during the course of investigation, fact-
finding, or adjudication.
    (7) Labor Organization Disclosure. The Department may disclose a 
record to an arbitrator to resolve disputes under a negotiated 
grievance procedure or to officials of a labor organization recognized 
under 5 U.S.C. chapter 71 when relevant and necessary to their duties 
of exclusive representation.
    (8) Freedom of Information Act (FOIA) and Privacy Act Advice 
Disclosure. The Department may

[[Page 41986]]

disclose records to the DOJ or the 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.
    (9) 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.
    (10) Contract Disclosure. If the Department contracts with an 
entity to perform any function that requires disclosure of records in 
this system to employees of the contractor, the Department may disclose 
the records to those employees. As part of such a contract, the 
Department shall require the contractor to agree to establish and 
maintain safeguards to protect the security and confidentiality of the 
disclosed records.
    (11) 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 the functions or 
purposes of this system of records, provided that such disclosure and 
research is consistent with the uses and restrictions set forth in 
Sections 483(a)(3)(E), 485B(d)(2), and 485B(d)(5)(B) of the HEA, and 
the Family Educational Rights and Privacy Act, 20 U.S.C. 1232g and 34 
CFR part 99. The Department may disclose records from this system of 
records to that researcher solely for the purpose of carrying out that 
research related to the functions or purposes of this system of 
records. The researcher shall be required to agree to establish and 
maintain safeguards to protect the security and confidentiality of the 
disclosed records.
    (12) Disclosure to OMB and the Congressional Budget Office (CBO) 
for Federal Credit Reform Act (CRA) Support. The Department may 
disclose records to OMB and CBO as necessary to fulfill CRA 
requirements in accordance with 2 U.S.C. 661b.
    (13) Disclosure in the Course of Responding to a Breach of Data. 
The Department may disclose records from this system of records to 
appropriate agencies, entities, and persons when (a) the Department 
suspects or has confirmed that there has been a breach of the system of 
records; (b) the Department has determined that as a result of the 
suspected or confirmed breach, there is a risk of harm to individuals, 
the Department (including its information systems, programs, and 
operations), the Federal government, or national security; and (c) the 
disclosure made to such agencies, entities, and persons is reasonably 
necessary to assist in connection with the Department's efforts to 
respond to the suspected or confirmed breach or to prevent, minimize, 
or remedy such harm.
    (14) Disclosure in Assisting another Agency in Responding to a 
Breach of Data. The Department may disclose records from this system to 
another Federal agency or Federal entity, when the Department 
determines that information from this system of records is reasonably 
necessary to assist the recipient agency or entity in (a) responding to 
a suspected or confirmed breach or (b) preventing, minimizing, or 
remedying the risk of harm to individuals, the recipient agency or 
entity (including its information systems, programs, and operations), 
the Federal Government, or national security, resulting from a 
suspected or confirmed breach.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12): The Department may 
disclose to a consumer reporting agency the following information 
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 31 U.S.C. 3711(e). A consumer reporting 
agency to which these disclosures may be made is defined at 15 U.S.C. 
1681a(f) and 31 U.S.C. 3701(a)(3).

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    The Department electronically stores, for the entire Federal 
Student Aid lifecycle from application through loan payoff, student 
demographic, and title IV, HEA aid data information such as, but not 
limited to, FFEL program, FISL program, and Perkins aid records, on 
hard disk at AWS Data Center in Seattle, Washington. The Department 
stores electronic master promissory notes, electronic Special Direct 
Consolidation Loan opportunity applications and promissory notes, 
electronic requests to repay a Direct Loan under an income-driven 
repayment plan, and Federal Direct Consolidation Loan applications and 
promissory notes on hard disk at the AWS Data Center in Seattle, 
Washington. Paper Direct Loan promissory notes and endorser addendums 
are stored in locked vaults in ASM Research in Niagara Falls, New York 
and at the NARA-operated Atlanta Federal Records Center near Atlanta, 
Georgia. Data obtained from the paper promissory notes are stored on 
hard disks at the AWS Data Center in Seattle, Washington. This data is 
referred to as metadata and is used by the system to link promissory 
notes to borrower data. The Department also creates and stores 
electronic images of the paper promissory notes at the ASM Research 
facility in Niagara Falls, New York. For information on the storage of 
other documents see paragraph entitled ``SYSTEM LOCATIONS''.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records in the COD System are retrieved by the individual's SSN or 
name, or by the institution's OPEID.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    All records are retained and disposed of in accordance with 
Department Records Schedule 072: FSA Application, Origination, and 
Disbursement Records (DAA-0441-2013-0002) (ED 072). ED 072 is being 
amended, pending approval by NARA. Records will not be destroyed until 
NARA-approved amendments to ED 072 are in effect, as applicable.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Physical access to the sites of the Department's contractors, where 
this system of records is maintained, is controlled and monitored by 
security personnel who check each individual entering the buildings for 
his or her employee or visitor badge.
    In accordance with the Department's Administrative Communications 
System Directive OM: 5-101 entitled ``Contractor Employee Personnel 
Security Screenings,'' all contract and Department personnel who have 
facility access and system access must undergo a security clearance 
investigation. Individuals requiring access to Privacy Act data are 
required to hold, at a minimum, a moderate-risk security clearance 
level. These individuals are required to undergo periodic screening at 
five-year intervals.
    In addition to undergoing security clearances, contract and 
Department employees are required to complete security awareness 
training on an annual basis. Annual security awareness

[[Page 41987]]

training is required to ensure that contract and Department users are 
appropriately trained in safeguarding Privacy Act data.
    The computer system employed by the Department offers a high degree 
of resistance to tampering and circumvention. 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 unique user identification. The Department's FSA Information 
Security and Privacy Policy require the enforcement of a complex 
password policy. In addition to the enforcement of the complex password 
policy, users are required to change their password at least every 90 
days in accordance with the Department's information technology 
standards.

RECORD ACCESS PROCEDURES:
    If you wish to gain access to a record in this system, contact the 
system manager at the address listed above. You must provide necessary 
particulars of your name, DOB, SSN, and any other identifying 
information requested by the Department while processing the request to 
distinguish between individuals with the same name. Requests by an 
individual for access to a record must meet the requirements in 34 CFR 
5b.5.

CONTESTING RECORD PROCEDURES:
    If you wish to contest the content of your personal record within 
the system of records, contact the system manager at the address listed 
above and provide your name, DOB, and SSN. Identify the specific items 
to be changed, and provide a written justification for the change. 
Requests to amend a record must meet the requirements in 34 CFR 5b.7.

NOTIFICATION PROCEDURES:
    If you wish to determine whether a record exists regarding you in 
the system of records, contact the system manager at the address listed 
above. You must provide necessary particulars such as your name, DOB, 
SSN, and any other identifying information requested by the Department 
while processing the request to distinguish between individuals with 
the same name. Requests must meet the requirements in 34 CFR 5b.5.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    The most recent notice modifying the COD system of records was 
published in the Federal Register on September 27, 2010 (75 FR 59242-
59246). The Department renamed the system of records entitled 
``Recipient Financial Management System'' (RFMS) as the ``Common 
Origination and Disbursement (COD) System'' on September 27, 2010. The 
Department previously published the RFMS system of records notice on 
June 4, 1999 (64 FR 30106, 30161-30162).

Appendix to 18-11-02

    The following is a detailed description of the data added to the 
COD system of records as a result of the exchanges of data within 
FSA:
    The COD System receives applicant data from the Department's CPS 
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 Student Aid Report and the 
Institutional Student Information Record. Federal Perkins Loan data 
and FSEOG overpayment data are sent from postsecondary institutions 
or their third-party servicers. The Department's COD System obtains 
school demographic information from the PEPS system.
    The COD System receives booking acknowledgements, discharge 
information, and payments to servicer data from Federal Loan 
Servicers.
    The COD System receives payment information from the CSB system 
on title IV, HEA grant overpayments that are being serviced by FSA's 
Default Division. This payment information assesses student aid 
eligibility, updates financial aid history, and ensures compliance 
with title IV, HEA regulations.
    The FMS system provides funding information at the institution 
level, refunds of cash, and reallocation information.

[FR Doc. 2019-17615 Filed 8-15-19; 8:45 am]
 BILLING CODE 4000-01-P