Privacy Act of 1974; System of Records, 42220-42226 [2023-13980]

Agencies

• DEPARTMENT OF EDUCATION

[Federal Register Volume 88, Number 124 (Thursday, June 29, 2023)]
[Notices]
[Pages 42220-42226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13980]



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Vol. 88

Thursday,

No. 124

June 29, 2023

Part IV





Department of Education





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Privacy Act of 1974; System of Records; Notice

Federal Register / Vol. 88, No. 124 / Thursday, June 29, 2023 / 
Notices

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DEPARTMENT OF EDUCATION

[Docket ID ED-2023-FSA-0113]


Privacy Act of 1974; System of Records

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

ACTION: Notice of a new 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 new system of records titled ``FUTURE Act System 
(FAS)'' (18-11-23). The Fostering Undergraduate Talent by Unlocking 
Resources for Education (FUTURE Act) amended the Internal Revenue Code 
(IRC) to authorize the U.S. Department of the Treasury, Internal 
Revenue Service (IRS), to disclose to the Department certain Federal 
tax information (FTI) of an individual, upon approval being provided by 
the individual to the Department, for the purpose of determining 
eligibility for, or repayment obligations under, Income-Driven 
Repayment (IDR) plans under title IV of the Higher Education Act of 
1965, as amended (HEA), with respect to loans under part D of title IV 
of the HEA, and determining eligibility for, and amount of Federal 
student financial aid under, a program authorized under subpart 1 of 
part A, part C, or part D of title IV of the HEA. The Department and 
the IRS have entered into a computer matching agreement (CMA) pursuant 
to which the IRS will disclose FTI to the Department, to maintain and 
secure the FTI obtained in this system.

DATES: Submit your comments on this new system of records notice on or 
before July 31, 2023.
    This new system of records notice will become applicable upon 
publication in the Federal Register on June 29, 2023, unless it needs 
to be changed as a result of public comment, except for the routine 
uses. The routine uses, listed in the section titled ``ROUTINE USES OF 
RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND 
PURPOSES OF SUCH USES,'' will become effective on July 31, 2023, unless 
they need to be changed as a result of public comment. The Department 
will publish any significant changes to the new system of records 
notice or routine uses 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 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 all comments 
received from members of the public available for public viewing in 
their entirety on the Federal eRulemaking Portal at 
www.regulations.gov. Therefore, commenters should be careful to include 
in their comments only information that they wish to make publicly 
available.
    Assistance to Individuals with Disabilities in Reviewing the 
Rulemaking Record: On request, we will provide an appropriate 
accommodation or auxiliary aid to an individual with a disability who 
needs assistance to review the comments or other documents in the 
public rulemaking record for this notice. If you want to schedule an 
appointment for this type of accommodation or aid, please contact the 
program contact person listed under FOR FURTHER INFORMATION CONTACT.

FOR FURTHER INFORMATION CONTACT: Pardu Ponnapalli, Technology 
Directorate, Federal Student Aid, U.S. Department of Education, Union 
Center Plaza, 830 First Street NE, Washington, DC 20202-5454. 
Telephone: 202-377-4006. 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, toll free, at 
1-800-877-8339.

SUPPLEMENTARY INFORMATION:

Introduction

    The FAS provides a confined platform consisting of three specific 
FSA information technology systems (namely, the FTI Module, FTI 
Datamart, and FTI Student Aid internet Gateway (SAIG), described in 
greater detail below), within which the Department uses and maintains 
FTI that the Department receives from the IRS in accordance with the 
IRC, including sections 6103(l)(13)(A), (C), and(D) therein.
    The FAS allows the Department to: (1) enhance the Free Application 
for Federal Student Aid (FAFSA[supreg])experience by enabling the 
Department to obtain FTI from the IRS for each applicant, parent, or 
spouse who provides approval for the purposes set forth in section 
6103(l)(13)(C) of the IRC; (2) improve program integrity for Income 
Driven Repayment (IDR) plans by enabling the Department to obtain FTI 
faster, and in a secure manner, from the IRS for individuals who 
provide approval for the purposes set forth in section 6103(l)(13)(A) 
and (C) of the IRC; and (3) provide an improved experience to 
applicable aid applicants and aid recipients, along with their spouses 
and parents, through the establishment of a matching program between 
the IRS and the Department.
    To the extent that the Department determines it to be required by 
law or essential to the conduct of its matching program with the IRS, 
the Department may also use the FTI that the IRS discloses to the 
Department for the foregoing purposes for the following additional 
purposes permitted by section 6103(l)(13)(D)(i) of the IRC: (a) 
reducing the net cost of improper payments: (i) under IDR plans, and 
(ii) relating to awards of Federal student financial aid under a 
program authorized under subpart 1 of part A, part C, or part D of 
title IV of the HEA; (b) the Department's OIG's oversight activities as 
authorized by chapter 4 of title 5 of the United States Code, except 
for the purpose of conducting criminal investigations or prosecutions; 
and (c) conducting analyses and forecasts for estimating costs related 
to: (i) IDR plans, and (ii) awards of Federal student financial aid 
under a program authorized under subpart 1 of part A, part C, or part D 
of title IV of the HEA. This will improve the Department's 
administration of programs authorized under title IV of the HEA by 
enhancing the FAFSA verification experience and eliminating multi-year 
certification for IDR plan applicants and aid recipients, which 
simplifies both online application experiences and prevents many aid 
recipients from defaulting on their Federal student loans.
    The three FSA information technology systems comprising the FAS are 
as follows:
    (i) FTI Module--The FTI Module is a centralized and secured 
platform that interfaces with the IRS to collect and maintain FTI via a 
matching program. It also serves as a database that contains

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FTI where authorized Department users can view FTI and perform all FTI-
related business functions. The FTI Module also houses the non-FTI 
information (e.g., last name, SSN/TIN, unique identifier, consent/
affirmative approval information, date, and time stamp) needed to 
engage in the applicable matching program. In particular, the 
Department uses the FTI Module to perform calculations required for the 
Department to determine eligibility for, and amount of, Federal student 
financial aid under subpart 1 of part A, part C, or part D of title IV 
of the HEA, and eligibility for, and repayment obligations under, IDR 
plans with respect to loans under part D of title IV of the HEA, as 
permitted under sections 6103(l)(13)(A) and (C) of the IRC. More 
specifically, the Department uses the FTI Module to calculate the 
Student Aid Index (SAI), verify financial information, conduct 
eligibility determination checks, and calculate the IDR plan monthly 
payment amount. Further, the. The FTI Module produces outputs to FSA 
systems outside of the FTI Module's boundary that address those 
systems' required business needs, as permitted by applicable law and in 
a manner that complies with IRS Publication 1075, ``Tax Information 
Security Guidelines for Federal, State, and Local Agencies.'' For 
example, the SAI calculation that is derived from FTI within the FTI 
Module boundary is transmitted to the FAFSA Processing System (FPS) 
covered by the Department's system of records notice entitled ``Aid 
Awareness and Application Processing'' (18-11-21). In addition, to 
determine eligibility requirements for loan repayment plans, the FTI 
Module calculates a monthly loan payment amount derived from FTI which 
is then transmitted to the Common Origination and Disbursement (COD) 
System covered by the Department's system of records notice entitled 
``Common Origination and Disbursement (COD)System'' (18-11-02);
    (ii) FTI Datamart--The FTI Datamart is a secure data warehouse that 
contains FTI maintained by the Department and utilizes analytics 
frameworks to support data analytics, budget service, and auditing 
analysis. A set of analytical tools included in the FTI Datamart 
provides users the ability to analyze data based on the users' needs 
and to the extent such analysis is authorized by sections 
6103(l)(13)(D)(i)(I) through (III) of the IRC; and
    (iii) FTI SAIG--The FTI SAIG is used for title IV, HEA data 
transmissions that contain FTI, as permitted by section 
6103(l)(13)(D)(iii) of the IRC and provided the Department has obtained 
the written consent of the taxpayer, to certain institutions of higher 
education (IHE),IHEs) State higher education agencies, and certain 
scholarship organizations solely for use in the application, award, and 
administration of financial aid awarded by the Federal government, by 
an IHE that participates in a program under subpart 1 of part A, part 
C, or part D of title IV of the HEA, by a State higher education 
agency, or by a scholarship organization designated by the Secretary of 
Education prior to December 19, 2019, under section 483(a)(3)(E) of the 
HEA.
    Additionally, the FTI SAIG allows users the ability to send and 
receive files while maintaining complete compliance with applicable law 
and the requirements of IRS Publication 1075 regarding the transfer and 
storage of FTI.
    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 U.S. Department of 
Education (Department or ED) publishes a notice of a new system of 
records to read as follows:

SYSTEM NAME AND NUMBER:
    FUTURE Act System (FAS) (18-11-23).

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Amazon Web Services (AWS) GovCloud West-1, 875 Howard Street, San 
Francisco, CA 94103-3009. (AWS GovCloud hosts the infrastructure that 
supports the FAS.) Federal Student Aid (FSA), U.S. Department of 
Education, Union Center Plaza, 830 First Street NE, Washington, DC 
20202-5454.

SYSTEM MANAGER(S):
    FUTURE Act System Manager, Technology Directorate, Federal Student 
Aid (FSA), U.S. Department of Education, Union Center Plaza, 830 First 
Street NE, Washington, DC 20202-5454.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Title IV of the Higher Education Act of 1965, as amended (HEA) (20 
U.S.C. 1070 et seq.); section 141(f) of the HEA (20 U.S.C. 1018(f)), 
and 6103(1)(13) and p(4) of the IRC and IRS Publication 1075 Tax 
Security Guidelines for Federal, State, and Local Agencies. The 
collection of Social Security numbers (SSNs) and Taxpayer 
Identification numbers (TINs) of individuals (including parents of 
dependent applicants and spouse(s) of independent applicants), who 
apply for or receive Federal student financial assistance under 
programs authorized by title IV of the HEA is also authorized by 31 
U.S.C. 7701 and Executive Order 9397, as amended by Executive Order 
13478 (November 18, 2008).

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:
    (1) To provide an aid applicant's or aid recipient's financial aid 
history to aid applicants or aid recipients, IHEs, Tribes, and Federal, 
State higher education agencies, or local agencies, and third-party 
servicers;
    (2) To assess the administration of title IV, HEA program funds;
    (3) To identify, recoup, and prevent improper payments in title IV, 
HEA programs;
    (4) To help Federal, State, Tribal and local government agencies 
exercise their supervisory and administration powers (including, but 
not limited to licensure, examination, discipline, regulation, or 
oversight of IHEs, Department contractors, guaranty agencies, lenders 
and loan holders, and third-party servicers);
    (5) To respond to aid applicant or aid recipient complaints 
submitted

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regarding the practices or processes of the Department and/or the 
Department's contractor;
    (6) To update information and correct errors contained in 
Department records regarding the aid applicant's or aid recipient's 
title IV, HEA program funds;
    (7) To support the investigation of possible fraud and abuse and 
detect and prevent fraud and abuse in title IV, HEA program funds;
    (8) To determine an applicant's eligibility for the award of aid 
under title IV of the HEA, State postsecondary education assistance, 
and aid by eligible IHEs or other entities that have been designated by 
the Secretary, as currently permitted by Section 483(a)(3)(E) of the 
HEA (20 U.S.C. 1090(a)(3)(E)), and to administer those awards.
    Pursuant to sections 6103(l)(13)(A) and (C) of the Internal Revenue 
Code (IRC) the Department will use the Federal tax information (FTI) 
disclosed to the Department by the U.S. Department of the Treasury, 
Internal Revenue Service (IRS), that the Department maintains in this 
system for the purpose of determining eligibility for, or repayment 
obligations under, Income-Driven Repayment (IDR) plans under title IV 
of the HEA, with respect to loans under part D of title IV of the HEA; 
and determining eligibility for, and amount of Federal student 
financial aid under, a program authorized under subpart 1 of part A, 
part C, or part D of title IV of the HEA.
    To the extent that the Department determines it to be required by 
law or essential to the conduct of its matching program with the IRS, 
the Department may also use the FTI that the Department maintains in 
this system for the foregoing purposes for the following additional 
purposes permitted by section 6103(l)(13)(D)(i) of the IRC:
    (1) reducing the net cost of improper payments:
    (a) under IDR plans, and
    (b) relating to awards of Federal student financial aid under a 
program authorized under subpart 1 of part A, part C, or part D of 
title IV of the HEA;
    (2) the Department's Office of Inspector General's (OIG's) 
oversight activities as authorized by chapter 4 of title 5 of the 
United States Code, except for the purpose of conducting criminal 
investigations or prosecutions; and (3) conducting analyses and 
forecasts for estimating costs related to:
    (a) IDR plans, and
    (b) awards of Federal student financial aid under subpart 1 of part 
A, part C, or part D of title IV of the HEA.
    The Department also uses the FTI that the Department maintains in 
this system to produce a Student Aid Report (SAR)/FAFSA Submission 
Summary (FSS), Institutional Student Information Record (ISIR) and, as 
permitted by section 6103(l)(13)(D)(iii) of the IRC and provided the 
Department has obtained the applicable individual's written consent, to 
distribute the ISIR to authorized institutions of higher education 
(IHEs), State higher education agencies, and certain scholarship 
organizations solely for the use in the application, award, and 
administration of financial aid awarded by the Federal Government, by 
an IHE that participates in a program under subpart 1 of part A, part 
C, or part D of title IV of the HEA, by a State higher education 
agency, or by a scholarship organization designated by the Secretary of 
Education prior to December 19, 2019, under section 483(a)(3)(E) of the 
HEA.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system of records maintains records on aid applicants, aid 
recipients, and participants (i.e., parent(s) of dependent applicants 
and spouse(s) of independent applicants) who apply for repayment of 
their obligations under IDR plans under title IV of the HEA with 
respect to loans under part D of title IV of the HEA, or who apply for 
Federal student financial aid under a program authorized under subpart 
1 of part A, part C, or part D of title IV of the HEA.

CATEGORIES OF RECORDS IN THE SYSTEM:
    This system of records maintains information provided by aid 
applicants for and aid recipients, or participants (as defined above) 
of, title IV, HEA program assistance on the Free Application for 
Federal Student Aid (FAFSA[supreg]) including, but not limited to, the 
applicant's last name, date of birth, SSN and/or TIN, unique 
identifier, consent/affirmative approval information, and the date/time 
stamp of the consent/affirmative approval provided for the purposes set 
forth in section 6103(l)(13)(C) of the IRC, clauses (iii), (iv), (v), 
and (vi) of section 6103(l)(13)(D) of the IRC, and under section 494(a) 
of the HEA (20 U.S.C. 1098h(a)). This system also maintains similar 
information provided about participants (as defined above) on the 
FAFSA. For an aid applicant or aid recipient who is married, this 
system of records also maintains spousal income and asset information. 
For an aid applicant or aid recipient who is a dependent student, this 
system of record maintains their income and asset information as well 
as the income and asset information of their parent(s).
    In addition, this system maintains data related to FTI transmission 
processing, such as when FTI batch data was transmitted and received by 
the FTI SAIG.
    This system also maintains the following data on IDR applicants and 
their spouses, if applicable, to calculate and produce the output 
calculation of the monthly repayment amount for IDR-related plans: the 
applicant's last name, date of birth, SSN and/or TIN, and unique 
identifier, and the consent/affirmative approval including date/time 
stamp provided for the purposes set forth in section 6103(l)(13)(A) of 
the IRC, clauses (iii), (iv), (v), and (vi) of section 6103(l)(13)(D) 
of the IRC, and under section 494(a) of the HEA (20 U.S.C. 1098h(a)).
    Further, this system maintains the following FTI to determine 
eligibility for, and amount of, Federal student financial aid under a 
program authorized under subpart 1 of part A, part C, or part D of 
title IV of the HEA: SSA/TIN; tax year; last name; filing status code; 
adjusted gross income (AGI) amount; total number of tax exemptions; 
total number of dependents; income earned from work (sum of wages, farm 
income, Schedule C income); total amount of income tax paid; total 
allowable education tax credits; sum of untaxed IRA contributions and 
other payments to qualified plans; tax-exempt interest received; sum of 
untaxed pensions and annuities; net profit/loss from Schedule C; and 
indicator of filing for Schedules A, B, D, E, F, and H. This FTI will 
be used to generate a Student Aid Index (SAI), which will also be 
maintained in this system.
    This system maintains the following FTI to determine eligibility 
for, or repayment of obligations under, IDR plans under title IV of the 
HEA with respect to loans under part D of title IV of the HEA: SSN/TIN, 
tax year; last name; filing status code; AGI amount; total number of 
exemptions; and total number of dependents. This FTI will be used to 
calculate monthly payment amounts, which will also be maintained in 
this system.

    Note:  With the consent/affirmative approval of the applicants, 
an ISIR will be provided to the IHEs identified on the applicant's 
FAFSA indicating the applicant's SAI, application results, whether 
there is discrepant or insufficient data, or FPS assumptions that 
affect FAFSA processing. The SAI will be used by IHEs to determine 
the student's eligibility for Federal and institutional program 
assistance, by State higher education agencies to determine the 
student's eligibility for State aid, and, if provided by the aid 
applicant or aid recipient, the Bureau of Indian Affairs (BIA) for 
tribal assistance.


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RECORD SOURCE CATEGORIES:
    Information maintained in this system is obtained from aid 
applicants or aid recipients, the parent(s) of dependent aid applicants 
or aid recipients (for FAFSA purposes only), and the spouse(s) of 
independent aid applicants or aid recipients for title IV, HEA program 
assistance; the authorized employees or representatives of IHEs, 
institutional third-party servicers, and State higher education 
agencies; and other persons or entities from which information is 
disclosed following a disclosure of records under the routine uses set 
forth below.
    This system maintains information added during FTI processing and 
receives information from other Department information technology 
systems or their successor systems, such as the National Student Loan 
Data System (NSLDS) (covered by the Department's system of records 
notice entitled ``National Student Loan Data System (NSLDS)'' (18-11-
06)); Common Origination and Disbursement (COD) System (covered by the 
Department's system of records notice entitled ``Common Origination and 
Disbursement (COD) System'' (18-11-02); Enterprise Data Management and 
Analytics Platform Services (EDMAPS) (covered by the Department's 
system of records notice entitled ``Enterprise Data Management and 
Analytics Platform Services'' (18-11-22)); Person Authentication 
Service (PAS) (covered by the Department's system of records notice 
entitled ``Person Authentication Service (PAS)'' (18-11-12)); 
Postsecondary Education Participants System (PEPS) (covered by the 
Department's system of records notice entitled ``Postsecondary 
Education Participants System (PEPS)'' (18-11-09)); and all information 
technology systems covered by the Department's system of records 
entitled ``Aid Awareness and Application Processing'' (18-11-21).
    Information maintained in this system is also obtained through a 
matching program with the IRS.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    The Department may disclose information maintained in a record in 
this system of records under the routine uses listed in this system of 
records without the consent of the individual if the disclosure is 
compatible with the purposes for which the record was collected. These 
disclosures may be made on a case-by-case basis or pursuant to a 
computer matching agreement that meets the requirements of the Privacy 
Act of 1974, as amended (Privacy Act) (5 U.S.C. 552a). However, any FTI 
maintained in a record in this system of records may only be disclosed 
without the consent of the individual under the routine uses listed in 
this system of records notice if the disclosure is compatible with the 
purposes for which the record was collected and if the disclosure is 
permissible under section 6103(l)(13) of the IRC. Section 483(a)(3)(E) 
of the HEA, which will be in effect until June 30, 2024, also restricts 
the use of the information collected by the electronic FAFSA to the 
application, award, and administration of aid awarded under title IV of 
the HEA or of aid awarded by States, eligible IHEs, or such entities as 
the Secretary of Education may designate. Thus, until July 1, 2024, any 
such FAFSA information may only be disclosed under the routine uses 
listed in this system of records notice if the disclosure is compatible 
with the purposes for which the record was collected and if the 
disclosure is for the application, award, and administration of aid 
awarded under title IV of the HEA or of aid awarded by States, eligible 
IHEs, or such entities as the Secretary of Education may designate.
    Program Disclosures. The Department may disclose records from this 
system of records for the following program purposes:
    (a) To provide an aid applicant's or aid recipient's financial aid 
history, the Department may disclose records to IHEs, Tribes, and 
Federal, State higher education agencies, or local agencies, and third-
party servicers;
    (b) To facilitate receiving application and recertification 
information, calculating IDR plans monthly payment amounts, and 
calculating SAI, the Department may disclose records to IHEs, and 
Federal, State higher education agencies, or local agencies, Tribes, 
and third-party servicers;
    (c) To assist the Department in assessing the administration of 
title IV, HEA program funds, the Department may disclose records to 
IHEs, third-party servicers, and Federal and State agencies;
    (d) To support the Department in identifying, preventing, and 
recouping, improper payments in title IV, HEA programs, the Department 
may disclose records to IHEs, third-party servicers, Tribes, and 
Federal, State, or local agencies, State higher education agencies, and 
fiscal/financial agent designated by the U.S. Department of Treasury 
include employees, agents, or contractors of such agent;
    (e) To help Federal, State, Tribal, and local governmental agencies 
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;
    (f) To support the investigation of possible fraud and abuse and to 
detect and prevent fraud and abuse in title IV, HEA program funds, the 
Department may disclose records to IHEs, third-party servicers, Tribal, 
and Federal, State, or local agencies; and
    (g) To determine an aid applicant's eligibility for the award of 
aid under title IV of the HEA, and to assist with the awarding and 
administration of aid, State postsecondary education assistance, and 
aid by eligible IHEs or other entities designated by the Secretary of 
Education and to administer those awards, the Department may disclose 
records to State agencies, eligible IHEs, third-party servicers, 
Tribal, Federal, State, or local agencies, and other entities that 
award aid to students that have been designated by the Secretary of 
Education.
    (2) 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 
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.
    (3) Litigation and Alternative Dispute Resolution (ADR) Disclosure.

[[Page 42224]]

    (a) Introduction. In the event that one of the 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 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 their official capacity;
    (iii) Any Department employee in their individual capacity where 
the U.S. Department of Justice (DOJ) agrees to or has been requested to 
provide or arrange for representation of the employee;
    (iv) Any Department employee in their individual capacity where the 
Department has agreed to represent the employee; and
    (v) The United States, where the Department determines that the 
litigation is likely to affect the Department or any of its components.
    (b) Disclosure to the DOJ. If the Department determines that 
disclosure of certain records to the DOJ is relevant and necessary to 
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 
disclosure of certain records to an adjudicative body before which the 
Department is authorized to appear or to a person or entity designated 
by the Department or otherwise empowered to resolve or mediate disputes 
is relevant and necessary to judicial or administrative litigation or 
ADR, 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 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.
    (4) Freedom of Information Act (FOIA) and Privacy Act Advice 
Disclosure. The Department may disclose records to the DOJ or to the 
Office of Management and Budget (OMB) if the Department determines that 
disclosure would help in determining whether records are required to be 
disclosed under the FOIA or the Privacy Act.
    (5) Contract Disclosure. If the Department contracts with an entity 
to perform any function that requires disclosing records to the 
contractor's employees, the Department may disclose the records to 
those employees. 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.
    (6) Congressional Member Disclosure. The Department may disclose 
records to a Member of Congress in response to an inquiry from the 
Member made at the written request of and on behalf of the individual 
whose records are being disclosed. The Member's right to the 
information is no greater than the right of the individual who 
requested it.
    (7) Employment, Benefit, and Contracting Disclosure.
    (a) For Decisions by the Department. The Department may disclose a 
record to a Federal, State, Tribal, 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 a record to a Federal, 
State, Tribal, local, or other public authority or professional 
organization, in connection with the hiring or retention of an employee 
or other personnel action, the issuance of a security clearance, the 
reporting of an investigation of an employee, the letting of a 
contract, or the issuance of a license, grant, or other benefit, to the 
extent that the record is relevant and necessary to the receiving 
entity's decision on the matter.
    (8) Employee Grievance, Complaint, or Conduct Disclosure. If a 
record is relevant and necessary to an employee grievance, complaint, 
or disciplinary action involving a present or former employee of the 
Department, the Department may disclose a record from this system of 
records 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.
    (9) Labor Organization Disclosure. The Department may disclose 
records from this system of records to an arbitrator to resolve 
disputes under a negotiated grievance procedure or to officials of 
labor organizations recognized under 5 U.S.C. chapter 71 when relevant 
and necessary to their duties of exclusive representation.
    (10) 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.
    (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 authorized and 
qualified to carry out specific research related to 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 the OMB and Congressional Budget Office (CBO) 
for Federal Credit Reform Act (FCRA) Support. The Department may 
disclose records to OMB and CBO as necessary to fulfill FCRA 
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 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

[[Page 42225]]

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 the following information to a consumer reporting agency 
regarding a valid, overdue claim of the Department: (1) the name, 
address, TIN, and other information necessary to establish the identity 
of the individual responsible for the claim; (2) the amount, status, 
and history of the claim; and (3) the program under which the claim 
arose. The Department may disclose the information specified in this 
paragraph under 5 U.S.C. 552a(b)(12) and the procedures contained in 
subsection 31 U.S.C. 3711(e). A consumer reporting agency to which 
these disclosures may be made is defined at 15 U.S.C. 1681a(f) and 31 
U.S.C. 3701(a)(3).

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Electronic applicant records, which may include optically imaged 
documents, are stored on Direct Access Storage Device (DASD) disks in a 
virtual disk library, in the computer facilities controlled by the 
Federal Student Aid Data Center.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records in this system pertaining to a title IV, HEA loan aid 
applicant or aid recipient are indexed and retrieved by a single 
information element or a combination of the following information 
elements: SSN/TIN, name, date of birth, and/or the academic year in 
which the aid applicant applied for title IV, HEA program assistance.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    Records that constitute FTI that are maintained in this system are 
primarily retained and disposed of in accordance with the following 
records schedules:
    (a) The Department will maintain FTI that the Department receives 
from the IRS pursuant to section 6103(l)(13)(A) of the IRC 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 title IV of the HEA, in accordance with ED Records Schedule 072, 
``FSA Application, Origination, and Disbursement Records'' (DAA-0441-
2013-0002)(ED 072); ED Records Schedule 075, ``FSA Loan Servicing, 
Consolidation, and Collections Records'' (DAA-N1-441-09-016) (ED 075); 
and ED Records Schedule 051, ``FSA National Student Loan Data 
System(NSLDS)'' (DAA-0441-2017-0004) (ED 051). The Department has 
proposed amendments to ED 072, ED 051, and ED 075 for NARA's 
consideration and will not destroy records covered by these records 
schedules until such amendments are in effect, as applicable;
    (b) The Department will maintain FTI that the Department receives 
from the IRS pursuant to sections 6103(l)(13)(A) and/or (C) of the IRC 
that the Department uses for the purpose of reducing the net cost of 
improper payments under such IDR plans and relating to such awards, and 
pursuant to section 6103(l)(13)(C) of the IRC for the purpose of 
determining eligibility for, and amount of, Federal student financial 
aid under the programs authorized under subpart 1 of part A, part C, or 
part D of title IV of the HEA in accordance with ED Records Schedule 
052, ``Ombudsman Case Files'' (N1-441-09-21) (ED 052). The Department 
has proposed amendments to ED 052 for NARA's consideration and will not 
destroy records covered by this records schedules until such amendments 
are in effect, as applicable;
    (c) The Department will maintain FTI that the Department receives 
from the IRS pursuant to sections 6103(l)(13)(A) and/or (C) of the IRC 
that the Department uses for the purpose of oversight by the 
Department's OIG as authorized by chapter 4 of title 5 of the United 
States Code, except for the purpose of conducting criminal 
investigations or prosecutions, in accordance with OIG ``Office of 
Inspector General Simplified Records Schedule'' (DAA-0441-2021-0001); 
and
    (d) The Department will maintain FTI that the Department receives 
from the IRS pursuant to IRC sections 6103(l)(13)(A) and/or (C) of the 
IRC that the Department uses for the purpose of conducting analyses and 
forecasts for estimating costs related to IDR plans and/or awards of 
Federal student financial aid under the Pell Grant, FWS or Direct Loan, 
programs authorized under subpart 1 of part A, part C, or part D of 
title IV of the HEA in accordance with ED Records Schedule 057, 
``Office of the Secretary, Deputy Secretary and Under Secretary,'' 
(DAA-441-97-1) (ED 057), item 16a; and General Records Schedule 1.3, 
``Budgeting Records,'' items 040 and 041. The Department proposed 
amendments to ED 057 for NARA's consideration and will not destroy 
records covered by this records schedule until such amendments are in 
effect, as applicable.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    All users of the system will have a unique user ID with a password. 
All physical access to the data housed at system locations is 
controlled and monitored by security personnel who check each 
individual entering the building for their employee or visitor badge. 
The computer system employed by the Department offers a high degree of 
resistance to tampering and circumvention with firewalls, encryption, 
and password protection. 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 interactions by users of the system are recorded.
    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.
    FISMA 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. The Department will maintain all FTI obtained from 
the matching program in accordance with section6103(p)(4) of the IRC 
and comply with the safeguards requirements set forth in IRS 
Publication 1075, Tax Information Security Guidelines for Federal, 
State, and Local Agencies, which is the IRS published guidance for 
security guidelines and other safeguards

[[Page 42226]]

for protecting FTI pursuant to section6103(p)(4) of the IRC and 26 CFR 
301.6103(p)(4)-1.

RECORD ACCESS PROCEDURES:
    If you wish to gain access to a record in this system, FAFSA 
applicants and contributors are encouraged to contact their IHE 
financial aid administrators to access their record most efficiently. 
IDR applicants, and those recertifying their IDR benefits, may access 
their non-FTI information by contacting their Federal student loan 
servicer. Either set of individuals may gain access to their complete 
records from this system, including FTI, by contacting the system 
manager at the address listed above. You must provide necessary 
particulars such as your name, SSN/TIN, date of birth, and any other 
identifying information requested by the Department while processing 
the request to distinguish between individuals with the same name. 
Alternatively, to gain access to a record in the system, you can make a 
Privacy Act request through the Department's FOIA Service Center at 
https://www2.ed.gov/policy/gen/leg/foia/request_privacy.html by 
completing the applicable request forms.
    Requests by an individual for access to a record must meet the 
requirements of the Department's Privacy Act regulations at 34 CFR 
5b.5, including proof of identity.

CONTESTING RECORD PROCEDURES:
    If you wish to contest or change the content of a record about you 
in the system of records, provide the System Manager with your name, 
date of birth, SSN/TIN, and any other identifying information requested 
by the Department, while processing the request, to distinguish between 
individuals with the same name. Identify the specific items to be 
changed and provide a justification for the change.
    Requests to amend a record must meet the requirements of the 
Department's Privacy Act regulations at 34 CFR 5b.7.

NOTIFICATION PROCEDURES:
    If you wish to determine whether a record exists about you in the 
system of records, contact the system manager at the address listed 
above. You must provide necessary particulars such as your name, SSN/
TIN, date of birth, and any other identifying information requested by 
the Department while processing the request to distinguish between 
individuals with the same name. Alternatively, you can make a Privacy 
Act request through the Department's FOIA Service Center at https://www2.ed.gov/policy/gen/leg/foia/request_privacy.html by completing the 
applicable request forms.
    Requests for notification about whether the system of records 
contains information about an individual must meet the requirements of 
the Department's Privacy Act regulations at 34 CFR 5b.5, including 
proof of identity.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

HISTORY:
    None.

[FR Doc. 2023-13980 Filed 6-28-23; 8:45 am]
BILLING CODE 4000-01-P