Notice2022-19888
Privacy Act of 1974; System of Records
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 13, 2022
Issuing agencies
Education Department
Abstract
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.
Full Text
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<title>Federal Register, Volume 87 Issue 176 (Tuesday, September 13, 2022)</title>
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[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56015-56025]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-19888]
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DEPARTMENT OF EDUCATION
[Docket ID ED-2022-FSA-0050]
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
[[Page 56016]]
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 October 13, 2022
This modified system of records notice will become applicable upon
publication in the Federal Register on September 13, 2022, except for
the new and modified routine uses 1(a), (b), (c), (d), (e), (f), (g),
(h), (i), (k), 2, 5(b), 11, and 15 that are 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 October 13, 2022, unless they need 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 <a href="http://regulations.gov">regulations.gov</a>. However, if you require an accommodation or
cannot otherwise submit your comments via <a href="http://regulations.gov">regulations.gov</a>, 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.
<bullet> Federal eRulemaking Portal: Go to <a href="http://www.regulations.gov">www.regulations.gov</a> to
submit your comments electronically. Information on using
Regulations.gov, including instructions for accessing agency documents,
submitting comments, and viewing the docket, is available on the site
under the ``help'' tab.
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
<a href="http://www.regulations.gov">www.regulations.gov</a>. 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 (UCP), Room 64E1,
830 First Street NE, Washington, DC 20202-5454. Telephone: 202-377-
3019. Email: <a href="/cdn-cgi/l/email-protection#74271c151a1a1b1a5a39151c151a3411105a131b02"><span class="__cf_email__" data-cfemail="a4f7ccc5cacacbca8ae9c5ccc5cae4c1c08ac3cbd2">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Introduction
The ``Common Origination and Disbursement (COD) System'' (18-11-02)
was last published in full in the Federal Register on August 16, 2019
(84 FR 41979).
The Department is modifying the section entitled ``SYSTEM
LOCATION'' to: clarify the name of, and remove the detailed description
of the data held by, Amazon Web Services (AWS) Government Cloud; add
Accenture Federal Services as a COD Support Center; add the NTT Global
Data Centers as data centers for contact center technical
infrastructure; and remove Senture, LLC, located in London, Kentucky,
and Cooney Solutions Group as COD Customer Service Centers.
The Department is modifying the section entitled ``SYSTEM
MANAGER(S)'' to make minor updates to the organization of the system
manager--the Director of the Program Delivery Services Group.
The Department is modifying the section entitled ``AUTHORITY FOR
THE MAINTENANCE OF THE SYSTEM'' to add ``the Higher Education Relief
Opportunities for Students Act of 2003 (20 U.S.C. 1098bb) (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 Department is modifying the section entitled ``PURPOSE(S) OF
THE SYSTEM'' to change the wording of the purposes related to
``students and borrowers'' to purposes related to ``aid applicants and
recipients under title IV of the HEA,'' to add a note that informs the
readers that the term ``discharge'' is synonymous, for the purposes of
this modified system of records notice, with ``forgiveness and
cancellation,'' and to make the following additional changes:
(i) Purpose (1) was expanded to include ``aid applicants'' and to
include the purpose of determining aid applicants' and recipients'
eligibility for and benefits under title IV, HEA programs, including
but not limited to, as examples of applicable determinations,
``receiving a loan, grant, or scholarship, and obtaining discharge of
eligible loans under title IV of the HEA'';
(ii) Purpose (2) was updated to refer to the storage of data and
documentation, rather than electronic data and documentation;
(iii) Purpose (3) was updated to delete and replace the reference
to ``individual'' with ``aid recipient'' and ``a title IV, HEA Federal
grant or loan'' with ``title IV, HEA program funds'';
(iv) Purpose (4) was updated to delete and replace the reference to
``individual'' with ``aid recipient'' and to delete and replace the
reference to ``the annual award limits under title IV, HEA Federal
grant or loan programs'' with ``title IV, HEA program fund award
limits'';
(v) Purpose (5) was updated to delete and replace the reference to
``individual'' with ``aid applicant or recipient'' and to include the
identification of an aid applicant or recipient who completed an
electronic Direct Consolidation Loan Application and promissory note;
(vi) Purpose (6) was updated to delete and replace the reference to
``individual'' with ``aid applicant or recipient,'' to clarify that
counseling includes entrance and exit counseling, and to include the
full name of the Teacher Education Assistance for College and Higher
Education (TEACH) Grant program;
(vii) Purpose (7) was updated to delete and replace the reference
to ``individual'' with ``aid recipient,'' to include the identification
of an aid recipient who completed an electronic request to repay a
Department-held Perkins loan or Department-held Federal Family
Education Loan (FFEL) Program loan, and to delete and replace the
reference to ``income-based or income contingent (hereafter `income-
driven') repayment plans'' with ``income-driven repayment plans'';
(viii) Purpose (8) was deleted because the identification of an
individual who completed an electronic Direct Consolidation Loan
Application and promissory note was added to purpose (5);
(ix) The parts of purpose (9) relating to tracking the level of
study,
[[Page 56017]]
Classification of Instructional Program (CIP) code, and educational
program length to limit eligibility for Direct Subsidized Loans to no
more than 150 percent of the published length of the educational
program in which the student is enrolled and to enabling Federal Loan
Servicers to determine whether an aid recipient who enrolls will be
responsible for the accruing interest on outstanding Direct Subsidized
Loans were deleted because the Consolidated Appropriations Act, 2021,
repealed the requirements referenced therein regarding limiting Direct
Subsidized Loan eligibility;
(x) Newly renumbered purpose (8) was added to reflect the tracking
of 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, as previously set forth in part of
purpose (9);
(xi) Newly renumbered purpose (9) was added 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;
(xii) New purpose (10) was added to enable the Department, or other
Federal, State, Tribal, or local agencies to investigate, respond to,
or resolve complaints regarding the Department's and/or the
Department's contractors' practices or processes, and to investigate,
respond to, or resolve aid applicants' and recipients' requests for
assistance or relief regarding title IV, HEA program funds;
(xiii) New purpose (11) was added to enable an aid applicant,
recipient, and, where applicable, an endorser, to initiate online
credit checks when they complete an electronic Federal Direct PLUS Loan
Application or an Endorser Addendum; and
(xiv) New purpose (12) was added to identify an aid recipient
obligated to repay title IV, HEA program funds pursuant to various
stored data and documentation such as promissory notes, applications,
and agreements.
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 as follows:
(i) Purpose (1) was updated to delete and replace the reference to
``title IV, HEA Federal grant and Direct Loan funds'' with ``title IV,
HEA program funds'';
(ii) Purpose (2) was updated to clarify that an institution of
higher education may use this system to request online credit checks on
aid applicants, recipients, or endorsers as part of the process to
determine the aid applicant's eligibility for a title IV, HEA Federal
Direct PLUS Loan;
(iii) Purpose (3) was updated to delete and replace the reference
to ``title IV, HEA Federal grant or loan'' with ``title IV, HEA program
funds''; and
(iv) New purpose (6) was added to collect Campus-Based expenditure
information for the previous award year and the ability to apply for
Campus-Based program funds using the Fiscal Operation Report and
Application to Participate (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 by adding the term ``administration,'' and as
follows:
(i) Purpose (1) was updated to delete and replace the reference to
``title IV, HEA Federal grant and loan programs'' with ``title IV, HEA
programs'';
(ii) Purpose (2) was updated to include limiting student aid
eligibility for institutions of higher education or programs offered by
institutions of higher education that are ineligible to receive title
IV, HEA program funds;
(iii) Purpose (6) regarding the performance of data analytics and
reporting to inform and optimize the effectiveness of the Department's
student financial assistance programs was deleted;
(iv) New purpose (6) was added 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;
(v) New purpose (7) was added to help governmental entities at the
Federal, State, Tribal, and local levels 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;
(vi) New purpose (8) was added 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;
(vii) New purpose (9) was added to support research, analysis, and
development of educational policies in relation to title IV, HEA
programs;
(viii) New purpose (10) was added to support the Department in
detecting and mitigating improper payments in title IV, HEA programs;
and
(ix) New purpose (11) was added to allow the Department to conduct
testing, analysis, or take other administrative actions needed to
prepare for or execute programs under title IV of the HEA.
The Department is modifying the section entitled ``CATEGORIES OF
INDIVIDUALS COVERED BY THE SYSTEM'' as follows:
(i) In the first paragraph, the Department added the word ``aid''
before ``applicants,'' included endorsers and parents and spouses of
aid applicants in the list of covered individuals, and deleted and
replaced the reference to ``Federal grant or loan under one of the
programs authorized under title IV of the HEA'' with ``title IV, HEA
programs'';
(ii) In the first paragraph, the Department deleted category (10),
the Auxiliary Loans to Assist Students Program also referred to as the
``ALAS Program,'' because it is not a title IV, HEA program but rather
was a type of loan under the FFEL program; and category (11), Health
Profession Student Loans (HPSL) Program, and category (12), Health
Education Assistance Loans (HEAL) Program, because they are not title
IV, HEA programs and the records of aid applicants and recipients with
loans under the HEAL and HPSL Programs are not maintained in this
system of records; and
(iii) The second paragraph was updated to replace the phrase
``title IV recipients'' with ``aid recipients under title IV of the
HEA,'' to delete the phrase that limited the system to covering aid
recipients who ``are currently or were previously enrolled at an
institution of higher education,'' and to clarify that the cohort
default rates (CDRs) are calculated by the National Student Loan Data
System (NSLDS) from guaranty agency-reported and Federal Loan Servicer-
reported data at the institution-level.
[[Page 56018]]
The Department is modifying the section entitled ``CATEGORIES OF
RECORDS IN THE SYSTEM'' as follows:
(i) In the first paragraph, the Department modified the
introductory language to refer to ``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, aid application or receive title IV, HEA aid,''
and to replace the reference to ``Federal grant or loan under one of
the programs authorized under title IV of the HEA'' with ``title IV,
HEA aid'';
(ii) Category (1) was updated to include mailing address, email
address, driver's license number, and telephone number, as the
Department considers these data elements in combination as identifiers;
(iii) Category (2) was updated to delete examples of an aid
applicant's and recipient's demographic data, moving some of these
examples, as well as spousal identifiers, to Category (1), to add
demographic information of parent(s) and spouse, and to cover ``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), 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'';
(iv) Category (3) was updated to include additional data elements,
date of disbursement, disbursement amounts, demographic and contact
information from the guaranty agency, lender(s), holder(s), and
servicer(s) of an aid recipient's FFEL program loan(s);
(v) Category (4) was updated to reflect ``Federal grant(s) aid
recipient'' instead of ``students receiving Federal grants,'' and
``Pell Grant additional eligibility indicator'' rather than ``Pell
Grant over-award indicator'';
(vi) Category (5) was deleted because Direct Loan dates of
disbursement and disbursement amounts were added to Category (3);
(vii) Category (6) was deleted because the guaranty agencies,
lender(s), holder(s), and servicer(s) of the aid recipient's FFEL
program loan(s) information were added to Category (3);
(viii) Newly renumbered Category (5) was updated to include Pell
Grant collection status indicator;
(ix) Newly renumbered Category (6) was updated to delete and
replace ``Direct Loan promissory notes'' with ``promissory notes,'' to
add Federal Direct PLUS loans, and to clarify that the accrued interest
applies to Department-held FFEL program loans;
(x) Newly renumbered Category (8) was updated to include the Annual
School Loan Acknowledgement (ASLA);
(xi) Newly renumbered Category (9) was updated to clarify that the
credit report information is for Federal Direct PLUS loan aid
applicants, recipients, and endorsers;
(xii) Newly renumbered Category (11) was updated to delete and
replace the references to ``borrower'' with ``aid recipient'' and to
include Special Direct Consolidation Loan aid recipient identifier
information;
(xiii) Newly renumbered Category (13) was updated to delete and
replace the references to ``borrower'' with ``aid recipient'' and to
specify that accounts placed with the Federal Loan Servicer(s) are
placed by the Department;
(xiv) New Category (14) was added to include 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;
(xv) The Department deleted the discussion of the data elements
used to perform data analysis for improper payments to prevent false
reporting and potential fraud;
(xvi) The Department updated the penultimate paragraph to reflect
that the Department no longer collects or monitors for the 150 percent
Direct Subsidized Loan Limit; and
(xvii) The Department deleted the reference to the Appendix in the
last paragraph of this section, which contained a description of the
data added to the system as a result of the exchanges of data within
FSA, because the Department is deleting the Appendix section.
The Department is modifying the section entitled ``RECORD SOURCE
CATEGORIES'' as follows:
(i) In the first paragraph, the Department added that the system
includes records on parents and spouses of aid applicants and
recipients, and that information is provided by applicants for, in
addition to recipients of, title IV, HEA program assistance, via, for
example, Federal Direct Consolidation Loan or Special Direct Loan
Consolidation application forms and promissory notes. In addition, the
reference to the <a href="http://StudentLoans.gov">StudentLoans.gov</a> website was updated to <a href="http://Studentaid.gov">Studentaid.gov</a>
with respect to the receipt of completion information for Direct Loan
and TEACH Grant program counseling;
(ii) The Department updated the second paragraph to delete and
replace ``credit reporting agencies'' with ``consumer reporting
agencies'' and to clarify consumer reporting agencies provide the
system with information on endorsers and recipients, in addition to aid
applicants, for Federal Direct PLUS loans;
(iii) The Department added a new third paragraph to indicate that
information is obtained from other Federal, State, Tribal, and local
agencies, guaranty agencies, consumer reporting agencies, educational
institutions, financial institutions, servicers, aid applicants and
recipients, parents of aid applicants and recipients, spouses of aid
applicants, and endorsers who request to repay a Direct Loan or Federal
Direct PLUS Loan under an income-driven repayment plan;
(iv) The Department clarified that record sources include
information obtained from successors to the Department's systems
referenced in the ``RECORD SOURCE CATEGORIES'' section, as the
Department is working to replace some of these systems;
(v) The Department deleted descriptions of information received by
the COD System from the Central Processing System (CPS), the National
Student Loan Data System (NSLDS), the Financial Management System
(FMS), the Postsecondary Education Participants System (PEPS), and the
Common Services for Borrowers (CSB) system because those descriptions
are not required and the underlying information is already described
by, and covered under, each of the aforementioned systems' specific
system of records notices; and
(vi) The Department added 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)) to the listing of FSA systems from which the COD System obtains
information.
[[Page 56019]]
The Department is modifying the section entitled ``ROUTINE USES OF
RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND
PURPOSES OF SUCH USES'' as follows:
(i) Routine use (1)(a) was modified to delete ``verify the identity
of the recipient or the accuracy of the record,'' and to add Tribal
agencies to the entities to which the Department can disclose records
from this system to assist with program eligibility and benefits
determinations;
(ii) Routine use (1)(b) was modified to delete the word
``electronic'' because the Department stores paper and electronic
documents;
(iii) Routine use (1)(c) was updated to delete and replace
``individual'' with ``aid recipient,'' and to delete and replace
``title IV, HEA Federal grant or loan'' with ``title IV, HEA program
funds'';
(iv) Routine use (1)(d) was updated to delete and replace
``individual'' with ``aid recipient,'' to delete and replace ``the
title IV, HEA Federal grant or Direct Loan programs'' with ``title IV,
HEA program funds,'' and to delete the word ``annual'' in describing
the ``award limits'' in the title IV, HEA regulations;
(v) Routine use (1)(e) was updated to delete and replace ``title
IV, HEA Federal grant and Direct Loan funds'' with ``title IV, HEA
program funds'';
(vi) Routine use (1)(f) was updated to add ``aid applicants,
recipients, or endorsers'' in the listing of individuals on whom an
institution of higher education can request online credit checks as
part of the process for eligibility determinations for Federal Direct
PLUS Loans, and to delete and replace ``applicants or borrowers'' with
``aid applicants and recipients'';
(vii) Routine use (1)(g) was updated to delete and replace ``a
title IV, HEA Federal grant or loan'' with ``title IV, HEA program
funds'';
(viii) Routine use (1)(h) was modified to delete and replace
``title IV, HEA Federal grant and loan programs'' with ``title IV, HEA
program funds,'' and to add Tribal agencies to the entities to which
the Department may disclose records from the system to support the
investigation of possible fraud and abuse and to detect and prevent
fraud and abuse in title IV, HEA programs;
(ix) Routine use (1)(i) was updated to delete and replace ``a
borrower or student'' with ``an aid applicant or recipient'';
(x) Routine use (1)(j) was deleted because the Consolidated
Appropriations Act, 2021, repealed the requirements referenced therein
regarding limiting Direct Subsidized Loan eligibility;
(xi) Previous routine use (1)(k) was redesignated as routine use
(1)(j);
(xii) New routine use (1)(k) was added to allow for the disclosure
of records from this system to governmental entities at the Federal,
State, Tribal, and local levels to help such 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;
(xiii) Routine use (2) was updated to add that a Congressional
member's request for a record must be made not only at the written
request of, but also on behalf of, an individual constituent whose
records are being disclosed;
(xiv) Routine use (5)(b) was updated to add public agencies' agents
and contractors and Department contractors to, and remove foreign
agencies from, the entities to which the Department may disclose
records from this system in connection with certain employment,
benefit, and contracting matters;
(xv) Routine use (11) was updated to remove the reference to
``appropriate official'' and to remove the references to the
``disclosure and research is consistent with the uses and restrictions
set forth in Sections 483(a)(3)(E), 485B(d)(2), and 485B(d)(5)(B) of
the HEA, and the Family Educational Rights and Privacy Act, 20 U.S.C.
1232g and 34 CFR part 99'' to make the language in this routine use
more consistent with the routine uses in other Department systems of
records notices; and
(xvi) New routine use (15) has been added to allow the Department
to disclose records from this system to the National Archives and
Records Administration (NARA) for the purpose of records management
inspections conducted under the authority of 44 U.S.C. 2904 and 2906.
The Department is modifying the section entitled ``POLICIES AND
PRACTICES FOR STORAGE OF RECORDS'' to delete and replace ``Perkins
aid'' with ``Perkins loan,'' ``AWS Data Center'' with ``AWS Government
Cloud'' and ``borrower'' with ``aid recipient.''
The Department is modifying the section entitled ``ADMINISTRATIVE,
TECHNICAL, AND PHYSICAL SAFEGUARDS'' to include information on
requirements under the Federal Information Security Management Act of
2002 (FISMA), as amended by the Federal Information Security
Modernization Act of 2014, to clarify that the Department system must
receive a signed Authorization to Operate (ATO) from a designated
Department official, and to describe privacy and security controls in
place to protect the information maintained in the system.
The Department is deleting the Appendix, which contained detailed
descriptions of the data added to the COD System as a result of data
exchanges within FSA, consistent with the Department's policy on the
removal of such appendices from system of records notices.
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 <a href="http://www.govinfo.gov">www.govinfo.gov</a>. 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
<a href="http://www.federalregister.gov">www.federalregister.gov</a>. 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) publishes a notice of a modified system of
records to read as follows:
SYSTEM NAME AND NUMBER:
Common Origination and Disbursement (COD) System (18-11-02).
SECURITY CLASSIFICATION:
Unclassified
[[Page 56020]]
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 Computer Center for the COD
application, where all electronic COD information is processed and
stored.)
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 a 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 (MPNs), Endorser Addenda, and Power of Attorney
documents are stored.)
NTT Global Data Centers Americas (Raging Wire), 44664 Guilford
Drive, 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, 2429 Military Rd., Suite 200, Niagara Falls, NY
14304-1551. (This center images and stores 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:
This system of records is authorized under title IV of the Higher
Education Act of 1965, as amended (HEA) (20 U.S.C. 1070 et seq,.) and
the Higher Education Relief Opportunities for Students Act of 2003 (20
U.S.C. 1098bb) (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).
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 store data and documentation, including, but not limited to,
HEA and promissory notes and other agreements that evidence the
existence of a legal obligation to repay funds disbursed under title
IV, HEA programs;
(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 completed an electronic
request to repay a Direct Loan, a Department-held Perkins loan, or a
Department-held Federal Family Education Loan (FFEL) Program loan under
income-driven repayment plans;
(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); and
(12) To identify an aid recipient obligated to repay title IV, HEA
program funds pursuant to various stored data and documentation such as
promissory notes, applications, and agreements.
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
[[Page 56021]]
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; and
(6) To collect Campus-Based expenditure information for the
previous award year and the ability to apply for Campus-Based program
funds using the Fiscal Operation Report and Application to Participate
(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 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; and
(11) To conduct testing, analysis, or take other administrative
actions needed to prepare for or execute programs under title IV of the
HEA.
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; and
(9) Federal Insured Student Loan (FISL) Program.
The COD System also maintains records of aid recipients under title
IV of the HEA and 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.
CATEGORIES OF RECORDS IN THE SYSTEM:
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),
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;
(3) Aid recipient's loan(s) information including information about
Direct Loan, 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 including grant amounts, grant
awards, verification status, lifetime eligibility used (LEU), IASG
eligible veteran's dependent indicator, Children of Fallen Heroes
Scholarship eligibility indicator, and the Pell Grant additional
eligibility indicator;
(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, 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
[[Page 56022]]
programs, such as the date that the aid applicant completed counseling;
(9) Credit report information for Federal Direct PLUS Loan
applicants, recipients, and endorsers;
(10) Aid applicant identifier information for an electronic request
to repay a Direct Loan under an income-driven repayment plan and
endorser/spouse information, such as the SSN of the applicant, the date
that the applicant completed the income-driven repayment plan
application, 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; and
(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.
The system also contains the following data about students provided
by institutions of higher education that participate in an experiment
under the Experimental Sites Initiative: award year, experiment number,
Office of Postsecondary Education identification number (OPEID),
student SSN, student last name, and any data collection instrument
elements authorized under 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 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.
RECORD SOURCE CATEGORIES:
This system includes records on aid applicants or recipients, aid
applicants' and recipients' parents, and spouses of aid applicants or
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
recipients, and the spouses of aid applicants who request to repay a
Direct Loan under an income-driven repayment 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 <a href="http://Studentaid.gov">Studentaid.gov</a>
(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, aid
applicants and recipients, parents of aid applicants and recipients,
spouses of aid applicants, and endorsers who request to repay a Direct
Loan or Federal Direct PLUS loan under an income-driven repayment plan.
Information is also obtained from other Department systems,
including the following systems, or their successor systems:
(1) The Central Processing System (CPS) (covered by the
Department's Privacy Act of 1974, as amended (Privacy Act), system of
records notice entitled ``Federal Student Aid Application File'' (18-
11-01));
(2) The National Student Loan Data System (NSLDS) (covered by the
Department's Privacy Act system of records notice entitled ``National
Student Loan Data System'' (18-11-06));
(3) The Financial Management System (FMS) (covered by the
Department's Privacy Act system of records notice entitled ``Financial
Management System (FMS)'' (18-11-17));
(4) 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));
(5) 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)); and
(6) 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)).
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 store 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
[[Page 56023]]
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 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; and
(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.
(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
[[Page 56024]]
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 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 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 stores, 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 stores electronic master promissory notes, electronic
Special Direct Consolidation Loan opportunity applications and
promissory notes, electronic requests to repay a Direct Loan under an
income-driven repayment plan, and Federal Direct Consolidation Loan
applications and promissory notes on hard disk at the AWS Government
Cloud in Seattle, Washington. Paper Direct Loan promissory notes and
endorser addendums are stored in locked vaults in ASM Research in
Niagara Falls, New York and at the NARA-operated Atlanta Federal
Records Center near Atlanta, Georgia. Data obtained from the paper
promissory notes are stored on hard disks at the AWS 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 stores electronic images of the paper
promissory notes at the ASM Research facility in Niagara Falls, New
York. For information on the storage of other documents, see the
section entitled ``SYSTEM LOCATION''.
[[Page 56025]]
POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
Records in the COD System are retrieved by the individual's SSN or
name, or by the institution's OPEID.
POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
All records are retained and disposed of in accordance with
Department Records Schedule 072: FSA Application, Origination, and
Disbursement Records (DAA-0441-2013-0002) (ED 072). ED 072 is being
amended, pending approval by NARA. Records will not be destroyed until
NARA-approved amendments to ED 072 are in effect, as applicable.
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
Physical access to the sites of the Department's contractors, where
this system of records is maintained, is controlled and monitored by
security personnel who check each individual entering the buildings for
his or her employee or visitor badge.
In accordance with the Department's Administrative Communications
System Directive 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 altered and published
in full 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. 2022-19888 Filed 9-12-22; 8:45 am]
BILLING CODE 4000-01-P
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</html>Indexed from Federal Register on September 13, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.