Privacy Act of 1974; System of Records, 41942-41951 [2023-13698]

Agencies

• DEPARTMENT OF EDUCATION

[Federal Register Volume 88, Number 123 (Wednesday, June 28, 2023)]
[Notices]
[Pages 41942-41951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13698]


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DEPARTMENT OF EDUCATION

[Docket ID ED-2023-FSA-0076]


Privacy Act of 1974; System of Records

AGENCY: Federal Student Aid, U.S. 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 U.S. Department of Education (Department) publishes 
this notice of a modified system of records entitled ``Common 
Origination and Disbursement (COD) System'' (18-11-02). The information 
contained in this system is maintained for various purposes relating to 
aid applicants and recipients including determining their eligibility 
for Federal student financial assistance under the programs authorized 
by title IV of the Higher Education Act of 1965, as amended (HEA); 
institutions of higher education participating in and administering 
title IV, HEA programs; and the Department's oversight of title IV, HEA 
programs.

DATES: Submit your comments on this modified system of records notice 
on or before July 28, 2023.
    This modified system of records notice will become applicable upon 
publication in the Federal Register on June 28, 2023, except for the 
new routine use (1)(l) that is outlined in the section entitled 
``ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING 
CATEGORIES OF USERS AND PURPOSES OF SUCH USES,'' which will be 
effective on July 28, 2023, unless it needs to be changed as a result 
of public comment. The Department will publish any changes to the 
modified system of records notice resulting from public comment.

ADDRESSES: Comments must be submitted via the Federal eRulemaking 
Portal at regulations.gov. However, if you require an accommodation or 
cannot otherwise submit your comments via regulations.gov, please 
contact the program contact person listed under FOR FURTHER INFORMATION 
CONTACT. The Department will not accept comments submitted by fax or by 
email, or comments submitted after the comment period closes. To ensure 
that the Department does not receive

[[Page 41943]]

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 
``FAQ'' tab.
    Privacy Note: The Department's policy is to make 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: Shannon Mahan, Acting Director, 
Program Delivery Services Group, Union Center Plaza, room 64E1, 830 
First Street NE, Washington, DC 20202-5454. Telephone: 202-377-3019. 
Email: [email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), you may call the Federal Relay Service (FRS), toll 
free, at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: 
    In accordance with the Privacy Act, the Department proposes to 
modify the system of records notice entitled, ``Common Origination and 
Disbursement (COD) System'' (18-11-02), which was last published in 
full in the Federal Register on September 13, 2022 (87 FR 56015).
    The Department is modifying this system of records by making a 
global change to delete and replace ``store'' or ``stored'' with 
``maintain'' or ``maintained'', as applicable, to better align with the 
terminology used in the Privacy Act.
    The Department is modifying the section entitled ``SYSTEM 
LOCATION'' as follows:
    (i) To update the description of the Amazon Web Services (AWS) from 
a ``computer'' to ``hosting'' center to better align with industry 
terminology; and
    (ii) To update the address of ASM Research from Niagara Falls, NY, 
to Fairfax, VA.
    The Department is modifying the section entitled ``AUTHORITY FOR 
THE MAINTENANCE OF THE SYSTEM'' to add ``the FAFSA Simplification Act 
(Title VII, Division FF of Pub. L. 116-260) (including, but not limited 
to the following Sections of the FAFSA Simplification Act: Subsection 
702(m), which amends Section 483 of the HEA, and Section 703 that 
amends Section 401 of the HEA), and the FAFSA Simplification Act 
Technical Corrections Act (Division R of the Consolidated 
Appropriations Act, 2022 (Pub. L. 117-103))'' to improve the financial 
aid application experience and expand title IV, HEA eligibility.
    The Department is modifying the section entitled ``PURPOSE(S) OF 
THE SYSTEM'' relating to aid applicants and recipients under title IV 
of the HEA as follows:
    (i) The list of data and documentation maintained in the COD System 
set forth in purpose (2) is expanded to include alternative 
documentation of income (ADOI), as an alternative to Federal Tax 
Information (FTI), used to support the calculation of a monthly payment 
amount for Income-Driven Repayment (IDR) plans;
    (ii) Purpose (7) is updated to identify an aid recipient who 
applies to repay or recertifies their eligibility to repay, an eligible 
lender-held Federal Family Education Loan (FFEL);
    (iii) New purpose (13) is added to identify an aid recipient who 
received a Federal Supplemental Education Opportunity Grant (FSEOG) or 
who earned money under the Federal Work-Study (FWS) program for use in 
the calculation of the Student Aid Index (SAI) and to assist with 
expenditure reporting on the Fiscal Operations Report and Application 
to Participate (FISAP);
    (v) New purpose (14) is added to enable an aid recipient to 
complete a Public Service Loan Forgiveness (PSLF) application using the 
``PSLF Help Tool'' and to maintain the aid recipient's PSLF qualifying 
employer's information including, but not limited to, authorizing 
official's name, title, phone number, email address, and digital 
signature (including time and date stamp); and
    (vi) New purpose (15) is added to identify whether an aid recipient 
(and where applicable the spouse), who is applying for or recertifies 
eligibility for an IDR plan has or has not provided consent/affirmative 
approval both to redisclose Federal Tax Information (FTI) of such 
individuals pursuant to clauses (iii), (iv), (v), and (vi) of section 
6103(l)(13)(D) of the Internal Revenue Code (IRC) of 1986 and under 
subsection 494(a) of the HEA (20 U.S.C. 1098h(a)) for the purpose of 
determining eligibility for, or repayment obligations under, IDR plans 
under title IV of the HEA with respect to loans under part D of the HEA 
(the Direct Loan program), and redisclosure of FTI under IRC Sec.  
6103(l)(13)(A) and (C).
    The Department is modifying the section entitled ``PURPOSE(S) OF 
THE SYSTEM'' relating to institutions of higher education (also 
referred to herein as ``educational institutions'') participating in 
and administering title IV, HEA programs by adding new purpose (7) to 
allow an institution of higher education to report an aid recipient's 
receipt of a FSEOG or earnings under the FWS program, which will be 
used in the SAI calculation and to assist with expenditure reporting on 
the FISAP.
    The Department is modifying the section entitled ``PURPOSE(S) OF 
THE SYSTEM'' relating to the Department's administration and oversight 
of title IV, HEA programs as follows:
    (i) Purpose (9) is being updated to include the implementation and 
evaluation of education policies in relation to title IV, HEA programs 
to better clarify the purpose;
    New purpose (12) is being added to assist eligible lenders in 
processing IDR plan requests for eligible aid recipients by providing 
the calculated monthly payment amounts. The Department is modifying the 
section entitled ``CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM'' as 
follows:
    (i) The FWS and the FSEOG Programs are added as new categories (10) 
and (11), respectively;
    (ii) The last phrase in the last paragraph is relocated, with some 
modifications, to the ``CATEGORIES OF RECORDS IN THE SYSTEM'' to better 
describe the cohort default rates described therein are categories of 
records, not individuals, in the system; and
    (iii) A new last paragraph is added to include a PSLF qualifying 
employer's authorizing official who has certified an aid recipient's 
employment.
    The Department is modifying the section entitled ``CATEGORIES OF 
RECORDS IN THE SYSTEM'' as follows:
    (i) The Department is adding a new note that explains that the FTI 
the Department will directly obtain from the Internal Revenue Service 
(IRS) under the Fostering Undergraduate Talent by

[[Page 41944]]

Unlocking Resources for Education (FUTURE) Act will not be maintained 
in this system of records but in a separate system of records, which 
will be covered by a system of records notice entitled ``FUTURE Act 
System (FAS)'' (18-11-23) that the Department will publish in the 
Federal Register;
    (ii) Category (2) is modified to include the incarcerated student 
indicator flag and the consent/affirmative approval both to redisclose 
Federal Tax Information (FTI) of such individuals pursuant to clauses 
(iii), (iv), (v), and (vi) of section 6103(l)(13)(D) of the Internal 
Revenue Code (IRC) of 1986 and for disclosure under section 494(a) of 
the HEA (20 U.S.C. 1098h(a)) to determine eligibility for, or repayment 
obligations under, IDR plans pursuant to subsection 494(a) of the HEA 
(20 U.S.C. 1098h(a));
    (iii) Category (4) is modified to include FSEOGs, approved Prison 
Education programs (PEPs) (the FAFSA Simplification Act allows for 
expanding access to Federal Pell Grants to include Federal and State 
penal facilities' approved PEPs), and information about the FWS 
program, including the amount of FWS amounts and category/type of FWS 
employment;
    (iv) Category (9) is modified to include records related to a 
request by an applicant for a Federal Direct PLUS Loan for a credit 
appeal including credit check details, adverse credit history, credit 
bureau information, and the appeal decision;
    (v) Category (10) is modified to include paper or electronic 
requests to repay, ``annual recertification of eligibility for'', 
``ADOI'', and ``IDR monthly payment amount based on the plan selection 
(as applicable)'' to expand the category of records collected;
    (vi) New category (15) is being added to include information 
provided and generated through customer interactions with contact 
center support via inbound and outbound channels (phone, chat, webform, 
email, customer satisfaction survey, fax, physical mail, and digital 
engagement platforms). Information includes, but is not limited to: 
chat transcripts, email communications, audio recordings of customer 
calls, and screen recordings of contact center desktop support during 
customer interactions;
    (vii) New category (16) is being added to include borrower defense 
(BD) information including an uniquely generated internal system case 
ID, a uniquely generated BD case number for Department, educational 
institution and student tracking, Office of Postsecondary Education 
Identification Number (OPEID), and the applicable regulatory year and 
provision (i.e., 1995, 2016, or 2020) under which the BD case is being 
processed; and
    (viii) The Department is adding two new paragraphs at the end of 
the section to explain that the system also contains an aid recipient's 
PSLF qualifying employer's information (including, but not limited to, 
authorizing official's name, title, phone number, email address, and 
digital signature (including time and date stamp)) and NSLDS cohort 
default rates calculated by the National Student Loan Data system from 
guaranty agency-reported and Federal Loan Servicer-reported data at the 
institution level.
    The Department is modifying the section ``RECORD SOURCE 
CATEGORIES'' as follows:
    (i) A new fourth paragraph is added to explain the process by which 
the Department obtains the PSLF qualifying employer's information 
including, but not limited to, authorizing official name, title, phone 
number, email address, and digital signature (including time and date 
stamp), through DocuSign (a secure digital software used by the 
Department to obtain and document digital signatures) as a service for 
the aid recipient and the aid recipient's PSLF qualifying employer for 
the purpose of processing the aid recipient's PSLF application; and
    (ii) In the fifth paragraph, category (1) is updated from the 
Central Processing System (CPS) (covered by the Department's Privacy 
Act system of records notice entitled ``Federal Student Aid Application 
File'' (18-11-01)) to the Student Aid internet Gateway (SAIG) (covered 
by the Department's Privacy Act system of records notice entitled 
``Student Aid internet Gateway (SAIG), Participation Management 
System'' (18-11-10)); category (5), covering the Customer Engagement 
Management System (CEMS) (covered by the Department's Privacy Act 
system of records notice entitled ``Customer Engagement Management 
System (CEMS)'' (18-11-11)), is deleted; new category (6) is added to 
include the Federal Tax Information Module (FTIM) (covered by the 
Department's Privacy Act system of records notice entitled ``FUTURE Act 
System (FAS)'' (18-11-23)); new category (7) is added to include the 
Person Authentication Service (PAS) (covered by the Department's 
Privacy Act system of records notice entitled ``Person Authentication 
Service (PAS)'' (18-11-12)); and new category (8) is added to include 
the FAFSA Processing System (covered by the Department's Privacy Act 
system of records notice entitled ``Aid Awareness and Application 
Processing'' (AAAP) (18-11-21)).
    The Department is modifying the section entitled ``ROUTINE USES OF 
RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND 
PURPOSES OF SUCH USES'' to add new routine use (1)(l) to enable the 
Department to disclose records including, but not limited to, monthly 
payment amounts and ADOIs, to eligible lenders to assist such lenders 
in processing an aid recipient's IDR plan. The Department is modifying 
the section entitled ``POLICIES AND PRACTICES FOR STORAGE OF RECORDS'' 
to indicate that the Department maintains Alternative Documentation Of 
Income (ADOI) and to include paper or electronic requests to repay for 
Direct Loan or Department-held Perkins or FFEL.
    The Department is modifying the section entitled ``POLICIES AND 
PRACTICES FOR RETRIEVAL OF RECORDS'' to include the BD case number as a 
why to access a record.
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc, or other accessible 
format.
    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.

Richard Cordray,
Chief Operating Officer, Federal Student Aid.

    For the reasons discussed in the preamble, the Chief Operating 
Officer, Federal Student Aid (FSA) of the U.S. Department of Education 
(Department) publishes a modified system of records notice to read as 
follows:

[[Page 41945]]

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), Union 
Center Plaza (UCP), Room 64E1, 830 First St. NE, Washington, DC 20202-
5454.
    Amazon Web Services (AWS) Government Cloud, 1200 12th Ave., Suite 
1200, Seattle, WA 98114. (This is the Hosting Center for the COD 
application, where all electronic COD information is processed and 
maintained.)
    Accenture, 22451 Shaw Rd., Sterling, VA 20166-4319. (The COD 
Sterling Cloud-based operations is located here.)
    Accenture DC, 820 First St. NE, Washington, DC 20202-4227. (This is 
the COD operations center.)
    Accenture Federal Services, 10931 Laureate Dr., San Antonio, TX 
78249. (This is the COD support center.)
    Atlanta Federal Records Center, National Archives and Records 
Administration (NARA), 4712 Southpark Blvd., Ellenwood, GA 30294. (This 
is where Direct Loan paper promissory notes (also referred to as master 
promissory notes or MPNs)), Endorser Addenda, and Power of Attorney 
documents are maintained.)
    NTT Global Data Centers Americas (Raging Wire), 44664 Guilford Dr., 
Ashburn, VA 20147. (This is a datacenter for contact center technical 
infrastructure.)
    NTT Global Data Centers Americas (Raging Wire), 2008 Lookout Dr., 
Garland, TX 75044. (This is a datacenter for contact center technical 
infrastructure.)
    The following three listings are the locations of the COD Customer 
Service Centers:
    ASM Research, 4050 Legato Road, #1100, Fairfax, VA 22033. (This 
center images and maintains all the Direct Loan paper MPNs and Endorser 
Addenda);
    Senture, LLC, 4255 W Highway 90, Monticello, KY 42633-3398; and
    Veteran Call Center, 53 Knightsbridge Rd., Suite 216, Piscataway, 
NJ 08854-3925.

SYSTEM MANAGER(S):
    Director, COD System, Program Delivery Services Group, 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:
    The authority under which the system is maintained is title IV of 
the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1070 et 
seq.), the Higher Education Relief Opportunities for Students Act of 
2003 (20 U.S.C. 1098(b) (including any waivers or modifications that 
the Secretary of Education deems necessary to make to any statutory or 
regulatory provision applicable to the student financial assistance 
programs under title IV of the HEA to achieve specific purposes listed 
in the section in connection with a war, other military operation, or a 
national emergency), the FAFSA Simplification Act (Title VII, Division 
FF of Pub. L. 116-260) (including but not limited to the following 
sections of the FAFSA Simplification Act: subsection 702(m), which 
amends section 483 of the HEA, and section 703, which amends section 
401 of the HEA), and the FAFSA Simplification Act Technical Corrections 
Act (Division R of the Consolidated Appropriations Act, 2022 (Pub. L. 
117-103)).

PURPOSE(S) OF THE SYSTEM:
    The information contained in this system is maintained for the 
following purposes related to aid applicants and recipients under title 
IV of the HEA:
    Note: Different parts of the HEA use the terms ``discharge,'' 
``cancellation,'' or ``forgiveness'' to describe when a borrower's loan 
amount is reduced in whole or in part by the Department. To reduce 
complexity, this system of records notice uses the term ``discharge'' 
to include all three terms (``discharge,'' ``cancellation,'' and 
``forgiveness''), including, but not limited to, discharges of student 
loans made pursuant to specific benefit programs. At times, the system 
of records notice may refer by name to a specific benefit program, such 
as the ``Public Service Loan Forgiveness'' program; such specific 
references are not intended to exclude any such program benefits from 
more general references to loan discharges.
    (1) To determine aid applicants' and recipients' eligibility for 
and benefits under title IV, HEA programs, including, but not limited 
to, receiving a loan, grant, or scholarship, and obtaining discharge of 
eligible loans under title IV of the HEA;
    (2) To maintain data and documentation, including, but not limited 
to, promissory notes and other agreements that evidence the existence 
of a legal obligation to repay funds disbursed under title IV, HEA 
programs and alternative documentation of income (ADOI) used to support 
the calculation of a monthly payment amount IDR plans;
    (3) To identify whether an aid recipient may have received title 
IV, HEA program funds at more than one educational institution for the 
same enrollment period in violation of title IV, HEA program 
regulations;
    (4) To identify whether an aid recipient may have exceeded title 
IV, HEA program fund award limits in violation of title IV, HEA program 
regulations;
    (5) To identify an aid applicant or recipient who completed an 
electronic Direct Consolidation Loan Application and promissory note or 
a Special Direct Consolidation Loan application and promissory note;
    (6) To identify an aid applicant or recipient who completed 
entrance and exit counseling in the Direct Loan or Teacher Education 
Assistance for College and Higher Education (TEACH) Grant programs;
    (7) To identify an aid recipient who apply to repay, or recertifies 
their eligibility to repay, a Direct Loan, a Department-held Perkins 
loan, a Department- or an eligible lender-held Federal Family Education 
Loan (FFEL) Program loan under an IDR plan;
    (8) To track 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;
    (9) To maintain a qualifying employer database to allow aid 
recipients who apply for Public Service Loan Forgiveness (PSLF), 
Temporary Expanded Public Service Loan Forgiveness (TEPSLF), or the 
limited PSLF waiver to search for and select their PSLF qualifying 
employer;
    (10) To enable the Department, or other Federal, State, Tribal, or 
local government agencies, to investigate, respond to, or resolve 
complaints concerning the practices or processes of the Department and/
or the Department's contractors, and to investigate, respond to, or 
resolve aid applicant and recipient requests for assistance or relief 
regarding title IV, HEA program funds;
    (11) To enable an aid applicant, recipient, and, where applicable, 
an endorser, to initiate online credit checks when they complete the 
electronic Federal Direct PLUS Loan Application or an Endorser Addendum 
(Note: If an applicant for a Federal Direct PLUS Loan is determined to 
be ineligible for a loan because they have an adverse credit history, 
they may still get a loan if they have a qualified endorser or complete 
a credit appeal);

[[Page 41946]]

    (12) To identify an aid recipient obligated to repay title IV, HEA 
program funds pursuant to various maintained data and documentation 
such as promissory notes, applications, and agreements;
    (13) To identify an aid recipient who received a Federal 
Supplemental Education Opportunity Grant (FSEOG) or who earned money 
under the Federal Work-Study (FWS) program for use in the calculation 
of the Student Aid Index (SAI) and to assist with expenditure reporting 
on the Fiscal Operations Report and Application to Participate (FISAP);
    (14) To enable an aid recipient to complete a PSLF application 
using the ``PSLF Help Tool'' and to maintain the aid recipient's PSLF 
qualifying employer's information including, but not limited to, 
authorizing official's name, title, phone number, email address, and 
digital signature (including time and date stamp); and
    (15) To identify whether an aid recipient (and where applicable the 
spouse) who is applying or recertifies eligibility for an IDR plan has 
or has not provided consent/affirmative approval both to redisclose 
Federal Tax Information (FTI) of such individuals pursuant to clauses 
(iii), (iv), (v), and (vi) of section 6103(l)(13)(D) of the Internal 
Revenue Code (IRC) of 1986 and under subsection 494 (a) of the HEA (20 
U.S.C. 1098h(a)) for the purpose of determining eligibility for, or 
repayment obligations under, IDR plans under title IV of the HEA with 
respect to loans under part D of the HEA (the Direct Loan Program), and 
redisclosure of FTI under IRC Sec.  6103(l)(13)(A) and (C).
    The information in this system is also maintained for the following 
purposes relating to institutions of higher education (also referred to 
herein as ``educational institutions'') 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 
program 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 on an aid applicant, recipient, or endorser in connection 
with the determination of the aid applicant's eligibility for a title 
IV, HEA Federal Direct PLUS Loan;
    (3) To assist an institution of higher education, a software 
vendor, or a third-party servicer with questions about title IV, HEA 
program funds;
    (4) To assist an institution of higher education with student loan 
default prevention;
    (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;
    (6) To collect Campus-Based expenditure information for the 
previous award year and the ability to apply for Campus-Based program 
funds using the FISAP;
    (7) To enable an institution of higher education to report an aid 
recipient's receipt of a FSEOG or earnings under the FWS program, which 
will be used in the SAI calculation and to assist with expenditure 
reporting on the FISAP.
    The information in this system is also maintained for the following 
purposes relating to the Department's administration and 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 title IV, HEA 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, and to limit student aid 
eligibility for ineligible institutions or programs accordingly;
    (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;
    (6) To ensure that Federal, State, local, and Tribal statutory, 
regulatory, contractual, and program requirements are met by 
educational and financial institutions, and the Department's 
contractors including Federal Loan Servicers and the Federal Perkins 
Loan Servicer;
    (7) To help governmental entities at the Federal, State, Tribal, 
and local levels to exercise their supervisory and administrative 
powers (including, but not limited to, licensure, examination, 
discipline, regulation, or oversight of educational institutions, 
Department contractors, guaranty agencies, eligible lenders, and third-
party servicers); to investigate, respond to, or resolve complaints 
regarding the practices or processes of the Department and/or the 
Department's contractors; and to update information or correct errors 
contained in Department records regarding title IV, HEA program funds;
    (8) To provide reporting capabilities for educational institutions, 
guaranty agencies, lenders, Department contractors including Federal 
Loan Servicers, and the Federal Perkins Loan Servicer for use in title 
IV, HEA administrative functions, and for use by the Department or 
Federal, State, Tribal, or local agencies for oversight and compliance;
    (9) To support research, analysis, and development, and the 
implementation and evaluation of educational policies in relation to 
title IV, HEA programs;
    (10) To support the Department in detecting and mitigating improper 
payments in title IV, HEA programs;
    (11) To conduct testing, analysis, or take other administrative 
actions needed to prepare for or execute programs under title IV of the 
HEA; and
    (12) To assist eligible lenders in processing IDR plan requests for 
eligible aid recipients by providing the calculated monthly payment 
amounts.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system contains records of aid applicants, aid applicants' 
parents, spouses of aid applicants, and where applicable, endorsers, 
who apply for title IV, HEA programs including, but not limited to, 
the:
    (1) Federal Pell Grant Program;
    (2) Federal Perkins Loans Program;
    (3) Academic Competitiveness Grant (ACG) Program;
    (4) National Science and Mathematics Access to Retain Talent 
(National SMART) Grant Program;
    (5) TEACH Grant Program;
    (6) Iraq and Afghanistan Service Grant (IASG) Program;
    (7) Direct Loan Program, which includes Federal Direct Stafford/
Ford Loans, Federal Direct Unsubsidized Stafford/Ford Loans, Federal 
Direct PLUS Loans, and Federal Direct Consolidation Loans;
    (8) FFEL Program;
    (9) Federal Insured Student Loan (FISL) Program;
    (10) FWS Program; and
    (11) FSEOG Program.
    The COD System also contains records of aid recipients under title 
IV of the HEA, parents of dependent aid applicants or recipients and 
the spouse of independent applicant or recipient. The COD System also 
maintains records on a PSLF qualifying employer's authorizing official 
who has certified an aid recipient's employment.

[[Page 41947]]

CATEGORIES OF RECORDS IN THE SYSTEM:
    Note: The Federal Tax Information (FTI) that the Department will 
obtain directly from the Internal Revenue Service (IRS) under the 
Fostering Undergraduate Talent by Unlocking Resources for Education 
(FUTURE) Act will be maintained in a separate system of records, which 
will be covered by a system of records notice entitled ``FUTURE Act 
System (FAS)'' (18-11-23) that the Department will publish in the 
Federal Register.
    Records in the COD System include, but are not limited to, the 
following data about aid applicants and recipients, endorsers, aid 
applicants' and recipients' parents, and spouses of aid applicants and 
recipients who are part of an aid applicant's title IV, HEA aid 
application or receive title IV, HEA aid:
    (1) Identifier information, including name, Social Security number 
(SSN), date of birth (DOB), mailing address, email address, driver's 
license number, and telephone number;
    (2) Aid applicant and recipient demographic information, including 
demographic information of the aid applicant's and recipient's 
parent(s) and aid applicant's and recipient's spouse (if applicable), 
incarcerated student indicator flag, expected student enrollment, list 
of participating title IV, HEA institutions of higher education 
designated by the aid applicant to receive the Free Application For 
Federal Student Aid (FAFSA[supreg]) form data along with residency 
plans, and the financial profile of an aid applicant, an aid 
applicant's parent(s), or an aid applicant's spouse, as reported and 
calculated through the FAFSA form, and to also include processing 
flags, indicators, rejections, and overrides; and the consent/
affirmative approval to disclose personally identifiable information to 
the IRS and to obtain FTI in order to determine eligibility for, or 
repayment obligations under, IDR plans pursuant to subsection 494 (a) 
of the HEA (20 U.S.C. 1098h(a));
    (3) Aid recipient's loan information including information about 
Direct Loans, FFEL program loans, Perkins loans, and FISL program 
loans. This includes information about the period from the origination 
of the loan through final payment, and milestones, including, but not 
limited to: discharge, consolidation, or other final disposition 
including details such as loan amount, date of disbursement, 
disbursement amounts, balances, loan status, repayment plan and related 
information, collections, claims, deferments, forbearances, refunds, 
and guaranty agencies, lender(s), holder(s), and servicer(s) of an aid 
recipient's FFEL program loan(s);
    (4) Information about Federal grant aid recipients, including 
recipients of Pell Grants, ACG, National SMART Grants, TEACH Grants, 
Iraq and Afghanistan Service Grants, and FSEOGs, including grant 
amounts, grant awards, verification status, lifetime eligibility used 
(LEU), IASG eligible veteran's dependent indicator, Children of Fallen 
Heroes Scholarship eligibility indicator, Pell Grant additional 
eligibility indicator, approved Prison Education programs (PEPs) (the 
FAFSA Simplification Act allows for expanding access to Federal Pell 
Grants to include Federal and State penal facilities' approved PEPS; 
and information about the FWS program, including the amount of FWS 
earnings and category/type of FWS employment;
    (5) Pell Grant collection status indicator and overpayment 
collection information;
    (6) Promissory notes including promissory note identification 
numbers, loan type, current servicer, principal balance, and the 
accrued interest for Direct Loans, Federal Direct PLUS Loans, or 
Department-held FFEL program loans;
    (7) TEACH Agreements to Serve;
    (8) Direct Loan Entrance Counseling forms, Federal Student Loan 
Exit Counseling forms, Federal Direct PLUS Loan Counseling forms, the 
Annual School Loan Acknowledgement (ASLA), Federal Direct PLUS Loan 
Requests, endorser addendums, and counseling in the Direct Loan and 
TEACH Grant programs, such as the date that the aid applicant completed 
counseling;
    (9) Credit report information for Federal Direct PLUS Loan 
applicants, recipients, and endorsers and if applicable, documents 
related to a Federal Direct PLUS Loan applicant's request for a credit 
appeal including credit check details, adverse credit history, credit 
bureau information, and applicant provided appeal support documentation 
and the Department's appeal decision,
    (10) Aid applicant, endorser, or spouse identifier information for 
a paper or electronic request to repay or annual recertification of an 
Direct Loan or Department-held Perkins or FFEL loans or annual 
recertification of eligibility for, an IDR plan, such as SSN; the date 
that the IDR plan application was completed; ADOI; IDR monthly payment 
amount based on the plan selection (as applicable); and current loan 
balances;
    (11) Electronic Direct Consolidation Loan or Special Direct 
Consolidation Loan aid recipient identifier information, such as the 
aid recipient's SSN, the date that the aid recipient completed the 
Federal Direct Consolidation Loan application and promissory note, and 
current loan balances;
    (12) Information concerning the date of any default on a loan;
    (13) Demographic and contact information for aid recipient accounts 
that the Department places with the Federal Loan Servicer(s) for 
collection of the aid recipient's title IV, HEA loans;
    (14) Information obtained pursuant to matching programs or other 
information exchanges with Federal and State agencies, and other 
external entities, to assist in identifying aid recipients who may be 
eligible for benefits related to their title IV, HEA loans or other 
title IV, HEA obligations, including, but not limited to, Total and 
Permanent Disability discharges, loan deferments, interest rate 
reductions, PSLF, and other Federal and State loan repayment, discharge 
benefits, or for the purpose of recouping payments or delinquent debts 
under title IV, HEA programs;
    (15) Information provided and generated through customer 
interactions with contact center support via inbound and outbound 
channels (phone, chat, webform, email, customer satisfaction survey, 
fax, physical mail, and digital engagement platforms). Information 
includes, but is not limited to: chat transcripts, email 
communications, audio recordings of customer calls, and screen 
recordings of contact center desktop support during customer 
interactions; and
    (16) Borrower defense (BD) information including a uniquely 
generated internal system case ID, a uniquely generated BD case number 
for Department, educational institution and student tracking, Office of 
Postsecondary Education Identification Number (OPEID), and the 
applicable regulatory year and provisions (i.e., 1995, 2016, or 2020) 
under which the BD case is being processed.
    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, 
OPEID, student SSN, student last name, and any data collection 
instrument elements authorized under the Information Collection Request 
associated with each experiment.
    The system also contains records from 2014-2021 on the level of 
study, Classification of Instructional Program code (field of study), 
and published length of an educational program in which a student 
receiving title IV, HEA

[[Page 41948]]

Federal student aid was enrolled to limit their eligibility for Direct 
Subsidized Loans to no more than 150 percent of the published length of 
the educational program in which the student was enrolled, and to 
determine when an aid recipient who enrolled after reaching the 150 
percent limit would have been responsible for the accruing interest on 
outstanding Direct Subsidized Loans.
    The system also contains an aid recipient's PSLF qualifying 
employer's information including, but not limited to, authorizing 
official's name, title, phone number, email address, and digital 
signature (including time and date stamp).
    Finally, the system maintains cohort default rates (CDRs) 
calculated by the National Student Loan Data System (NSLDS) from 
guaranty agency-reported and Federal Loan Servicer-reported data at the 
institution level.

RECORD SOURCE CATEGORIES:
    This system includes records obtained from aid applicants and 
recipients, aid applicants' and recipients' parents, and spouses of aid 
applicants and recipients who are part of an applicant's or recipient's 
title IV, HEA aid application, or who have received title IV, HEA 
program assistance. These records include information provided by 
applicants for and recipients of title IV, HEA program assistance, via, 
for example, Federal Direct Consolidation Loan or Special Direct Loan 
Consolidation application forms and promissory notes, the parents of 
dependent aid applicants and recipients, and the spouses of aid 
applicants and recipients who request to repay a Direct Loan, or 
recertifies their eligibility for, an IDR plan.
    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 
Studentaid.gov (the student-facing portion of the website) or from 
institutions of higher education, or both.
    The system also receives information on Federal Direct PLUS Loan 
applicants, recipients, and endorsers from consumer reporting agencies.
    Information is also obtained from other Federal, State, Tribal, and 
local agencies, guaranty agencies, consumer reporting agencies, 
educational institutions, financial institutions, servicers.
    Information is also obtained about a PSLF qualifying employer 
through DocuSign (a secure digital software used by the Department to 
obtain and document digital signatures). The process through which the 
Department obtains the information using DocuSign is as follows:
    (1) The aid recipient completes the PSLF application via the 
``Helptool,'' which includes the employer's name and email address;
    (2) The Department sends the information to DocuSign; and DocuSign 
sends an email to the employer, which includes a randomly generated 
code;
    (3) If the employer does not opt out, the employer logs in to 
DocuSign with the randomly generated code to ensure the employer is 
accessing the correct recipient certification in DocuSign;
    (4) The employer certifies the aid recipient's employment, provides 
the employer's authorizing official's name, title, email address, and 
phone number, and electronically signs the PSLF certification; and
    DocuSign returns to the Department the PSLF qualifying employer's 
information. Information is also obtained from other Department 
systems, including the following systems, or their successor systems:
    (a) The Student Aid Internet Gateway (SAIG) (covered by the 
Department's Privacy Act of 1974, as amended (Privacy Act) system of 
records notice entitled ``Student Aid Internet Gateway, Participant 
Management System'' (18-11-10));
    (b) The National Student Loan Data System (NSLDS) (covered by the 
Department's Privacy Act of 1974, as amended (Privacy Act) system of 
records notice entitled ``National Student Loan Data System'' (18-11-
06));
    (c) The Financial Management System (FMS) (covered by the 
Department's Privacy Act system of records notice entitled ``Financial 
Management System (FMS)'' (18-11-17));
    (d) 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));
    (e) The Common Services for Borrowers (CSB) system (covered by the 
Department's Privacy Act system of records notice entitled ``Common 
Services for Borrowers (CSB)'' (18-11-16);
    (f) The Federal Tax Information Module (FTIM) (covered by the 
Department's Privacy Act system of records notice entitled ``FUTURE Act 
System (FAS)'' (18-11-23));
    (g) The Person Authentication Service (PAS) (covered by the 
Department's Privacy Act system of records notice entitled ``Person 
Authentication Service (PAS)'' (18-11-12)); and
    (h) The FAFSA Processing System (covered by the Department's 
Privacy Act system of records notice entitled ``Aid Awareness and 
Application Processing (AAAP'') (18-11-21)).
    The system may also obtain information from other persons or 
entities from which data is obtained following a disclosure under the 
routine uses set forth below.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS 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 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, Tribal, or local agencies;
    (b) To maintain 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 aid recipient may have received title 
IV, HEA program funds 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 aid recipient may have exceeded the 
award limits under title IV, HEA program funds 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

[[Page 41949]]

and recipient-level basis, the amount of title IV, HEA program funds 
that an institution received with the 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 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 of aid applicants, aid recipients, or endorsers as part 
of the process for determining the eligibility of aid applicants and 
recipients for a title IV, HEA Federal Direct PLUS Loan, disclosures 
may be made to institutions of higher education, third-party servicers, 
consumer reporting agencies, and Federal agencies;
    (g) To assist individuals, institutions of higher education, third-
party servicers, or software vendors with questions about title IV, HEA 
program funds, 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 program funds, 
disclosures may be made to institutions of higher education, third-
party servicers, and Federal, State, local, or Tribal 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 an aid applicant or recipient has completed 
required counseling in the Direct Loan or TEACH Grant programs;
    (j) To assist the Department in determining eligibility for a 
Federal Direct PLUS Loan, disclosures may be made to consumer reporting 
agencies;
    (k) To help Federal, State, Tribal, and local governmental entities 
exercise their supervisory and administrative powers (including, but 
not limited to licensure, examination, discipline, regulation, or 
oversight of educational institutions, Department contractors, guaranty 
agencies, eligible lenders, and third-party servicers) or to 
investigate, respond to, or resolve complaints submitted regarding the 
practices or processes of the Department and/or the Department's 
contractors, the Department may disclose records to governmental 
entities at the Federal, State, Tribal, and local levels. These records 
may include all aspects of records relating to loans and grants made 
under title IV of the HEA, to permit these governmental entities to 
verify compliance with debt collection, consumer protection, financial, 
and other applicable statutory, regulatory, or local requirements. 
Before making a disclosure to these Federal, State, local, or Tribal 
governmental entities, the Department will require them to maintain 
safeguards consistent with the Privacy Act to protect the security and 
confidentiality of the disclosed records;
    (l) To assist an eligible lender in processing an aid recipient's 
IDR plan, the Department may disclose records, including, but not 
limited to, the calculated monthly payment amount based on the IDR plan 
selected and ADOIs, to eligible lenders.
    (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 and on behalf 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 U.S. 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; and
    (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 DOJ. If the Department determines that disclosure 
of certain records to DOJ is relevant and necessary to judicial or 
administrative litigation or ADR, the Department may disclose those 
records as a routine use to DOJ.
    (c) Adjudicative Disclosure. If the Department determines that it 
is relevant and necessary to judicial or administrative 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 
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 or their Agents and 
Contractors, Professional Organizations, or the Department's 
Contractors. The Department may disclose records to a Federal, State, 
local, or other public agency or an agent or contractor of such a 
public agency, professional organization, or the Department's 
contractor in connection with the hiring or retention of an employee or 
other personnel action; the issuance of a security clearance; the 
reporting of an

[[Page 41950]]

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 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 
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 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. 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.
    (15) Disclosure to the National Archives and Records Administration 
(NARA). The Department may disclose records from this system of records 
to NARA for the purpose of records management inspections conducted 
under the authority of 44 U.S.C. 2904 and 2906.

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 
section 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 maintains, for the entire Federal 
Student Aid lifecycle from application through loan payoff, student and 
applicant demographic, and title IV, HEA aid data such as, but not 
limited to, FFEL program, FISL program, and Perkins loan records, on 
hard disk at the AWS Government Cloud in Seattle, Washington. The 
Department maintains electronic master promissory notes, electronic 
Special Direct Consolidation Loan opportunity applications and 
promissory notes, paper or electronic requests to repay or a 
recertification a Direct Loan or Department-held Perkins or FFEL under 
an IDR plan, and Federal Direct Consolidation Loan applications, ADOIs, 
and promissory notes on hard disk at the AWS Government Cloud in 
Seattle, Washington. Paper Direct Loan promissory notes and endorser 
addendums are maintained 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 maintained on hard disks at the AWS Government Cloud in 
Seattle, Washington. This data is referred to as metadata and is used 
by the system to link promissory notes to aid recipient data. The 
Department also creates and maintains electronic images of the paper 
promissory notes at the ASM Research facility in Niagara Falls, New 
York. For information on the maintenance of other documents, see the 
section entitled ``SYSTEM LOCATION.''

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

[[Page 41951]]

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 
their employee or visitor badge.
    In accordance with the Department's Administrative Communications 
System Directive ACSD-OFO-013 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 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 requires 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.
    In accordance with the Federal Information Security Management Act 
of 2002 (FISMA), as amended by the Federal Information Security 
Modernization Act of 2014, every Department system must receive a 
signed Authorization to Operate (ATO) from a designated Department 
official. The ATO process includes a rigorous assessment of security 
and privacy controls, a plan of actions and milestones to remediate any 
identified deficiencies, and a continuous monitoring program.
    Security and privacy controls implemented are comprised of a 
combination of management, operational, and technical controls, and 
include the following control families: access control, awareness and 
training, audit and accountability, security assessment and 
authorization, configuration management, contingency planning, 
identification and authentication, incident response, maintenance, 
media protection, physical and environmental protection, planning, 
personnel security, privacy, risk assessment, system and services 
acquisition, system and communications protection, system and 
information integrity, and program management.

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 system of records entitled ``Common Origination and 
Disbursement (COD) System'' (18-11-02) was last modified and published 
in full in the Federal Register on September 13, 2022 (87 FR 56015-
56025). Prior to this, the Department modified and published in full 
this system of records notice in the Federal Register on August 16, 
2019 (84 FR 41979-41987). The Department renamed its previous system of 
records entitled, ``Recipient Financial Management System'' (RFMS) (18-
11-02), as the ``Common Origination and Disbursement (COD) System'' 
(18-11-02), on September 27, 2010 (75 FR 59242-59246). The Department 
previously published the RFMS system of records notice on June 4, 1999 
(64 FR 30106, 30161-30162).
[FR Doc. 2023-13698 Filed 6-27-23; 8:45 am]
BILLING CODE 4000-01-P