80 FR 56969 - Privacy Act of 1974; System of Records-Electronic Cohort Default Rate Appeals (eCDR Appeals), as Supplemented and Renamed Data Challenges and Appeals Solutions System

DEPARTMENT OF EDUCATION

Federal Register Volume 80, Issue 182 (September 21, 2015)

In accordance with the Privacy Act of 1974, as amended (Privacy Act), the Department of Education (Department) publishes this notice of an altered system of records entitled ``Data Challenges and Appeals Solutions (DCAS) System,'' which will replace the ``Electronic Cohort Default Rate Appeals (eCDR Appeals)'' system of records. On October 31, 2014, the Secretary published final regulations in the Federal Register that apply to educational programs that are eligible to participate in the student financial assistance programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA), because these programs ``prepare students for gainful employment in a recognized occupation'' (GE regulations). The GE regulations establish a new program eligibility measure and disclosure requirements. As a result, Federal Student Aid (FSA) will be responsible for many more data challenges, requests for adjustments, and appeals in the coming years. The DCAS System is the enhanced successor system to the eCDR Appeals system and will be implemented in phases to include all appeals, requests for adjustments and challenges related to institutional cohort default rates (CDRs), the GE regulations, and other student-level data initiatives. After FSA fully implements all phases of the DCAS System, FSA will retire the prior information technology system that housed the eCDR Appeals data. In addition to the records described above, the DCAS System will contain records regarding borrowers who have applied for and received loans under the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program. The Department seeks comment on the altered system of records described in this notice, in accordance with the requirements of the Privacy Act.

[Federal Register Volume 80, Number 182 (Monday, September 21, 2015)]
[Notices]
[Pages 56969-56972]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23633]


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DEPARTMENT OF EDUCATION


Privacy Act of 1974; System of Records--Electronic Cohort Default 
Rate Appeals (eCDR Appeals), as Supplemented and Renamed Data 
Challenges and Appeals Solutions System

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice of an altered system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended 
(Privacy Act), the Department of Education (Department) publishes this 
notice of an altered system of records entitled ``Data Challenges and 
Appeals Solutions (DCAS) System,'' which will replace the ``Electronic 
Cohort Default Rate Appeals (eCDR Appeals)'' system of records.
    On October 31, 2014, the Secretary published final regulations in 
the Federal Register that apply to educational programs that are 
eligible to participate in the student financial assistance programs 
authorized under title IV of the Higher Education Act of 1965, as 
amended (HEA), because these programs ``prepare students for gainful 
employment in a recognized occupation'' (GE regulations). The GE 
regulations establish a new program eligibility measure and disclosure 
requirements. As a result, Federal Student Aid (FSA) will be 
responsible for many more data challenges, requests for adjustments, 
and appeals in the coming years.
    The DCAS System is the enhanced successor system to the eCDR 
Appeals system and will be implemented in phases to include all 
appeals, requests for adjustments and challenges related to 
institutional cohort default rates (CDRs), the GE regulations, and 
other student-level data initiatives. After FSA fully implements all 
phases of the DCAS System, FSA will retire the prior information 
technology system that housed the eCDR Appeals data.
    In addition to the records described above, the DCAS System will 
contain records regarding borrowers who have applied for and received 
loans under the William D. Ford Federal Direct Loan (Direct Loan) 
Program and the Federal Family Education Loan (FFEL) Program.
    The Department seeks comment on the altered system of records 
described in this notice, in accordance with the requirements of the 
Privacy Act.

DATES: We must receive your comments about this altered system of 
records on or before October 21, 2015.
    The Department filed a report describing the altered system of 
records covered by this notice with the Chair of the Senate Committee 
on Homeland Security and Governmental Affairs, the Chair of the House 
Committee on Oversight and Government Reform, and the Administrator of 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget (OMB) on September 10, 2015. This altered system of records 
will become effective upon the later date of: (1) The expiration of the 
40-day period for OMB review on October 21, 2015; or (2) October 21, 
2015, unless the altered system of records needs to be changed as a 
result of public comment or OMB review.

ADDRESSES: Address all comments about this altered system of records to 
Nikki Harris, Operation Performance Division, Gainful Employment Staff, 
Federal Student Aid, U.S. Department of Education, Union Center Plaza, 
830 First Street NE., Room 62A4, Washington, DC 20202-5353.
    If you prefer to send comments by email, use the following address: 
[email protected].
    You must include ``eCDR Appeals/DCAS'' in the subject line of your 
electronic message.
    During and after the comment period, you may inspect all comments 
about

[[Page 56970]]

this notice at the U.S. Department of Education in Room 62A4, Union 
Center Plaza, 6th Floor, 830 First Street NE., Washington, DC, between 
the hours of 8:00 a.m. and 4:00 p.m., Eastern time, Monday through 
Friday of each week except Federal holidays.

Assistance to Individuals With Disabilities in Reviewing the Rulemaking 
Record

    On request, we will supply appropriate accommodations or auxiliary 
aids 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: Nikki Harris. Telephone number: (202) 
377-4876. If you use a telecommunications device for the deaf (TDD) or 
a text telephone (TTY), call the Federal Relay Service (FRS), toll 
free, at 1-800-877-8339.
    Individuals with disabilities can obtain this document in an 
alternative format (e.g., braille, large print, audiotape, or compact 
disc) on request to the contact person listed in this section.

SUPPLEMENTARY INFORMATION: 

Introduction

    The Privacy Act (5 U.S.C. 552a(e)(4)) requires the Department to 
publish in the Federal Register this notice of an altered system of 
records maintained by the Department. The Department's regulations 
implementing the Privacy Act are contained in the Code of Federal 
Regulations in part 5b of title 34.
    The Privacy Act applies to a record about an individual that is 
maintained in a system of records from which individually identifying 
information is retrieved by a unique identifier associated with each 
individual, such as a name or Social Security number. The information 
about each individual is called a ``record,'' and the system, whether 
manual or computer based, is called a ``system of records.''
    The Privacy Act requires each agency to publish a system of records 
notice in the Federal Register and to submit, whenever the agency 
publishes a new system of records or makes a significant change to an 
established system of records, a report to the Administrator of the 
Office of Information and Regulatory Affairs, OMB. Each agency is also 
required to send copies of the report to the Chair of the Committee on 
Oversight and Government Reform of the House of Representatives, and to 
the Chair of the Committee on Homeland Security and Governmental 
Affairs of the Senate.
    The Department currently uses the eCDR Appeals system for data 
challenges, requests for adjustments, and appeals consistent with the 
requirements of the CDR regulations in subpart N of the Student 
Assistance General Provisions regulations (34 CFR part 668), which the 
Department promulgated to implement the CDR requirements of section 435 
of the HEA. The CDR is the percentage of borrowers at an institution of 
higher education (institution) who enter repayment on certain FFEL 
Loans and/or Direct Loans during the fiscal year and default within 
that cohort period. Every year, the Department calculates the CDR for 
institutions twice a year based on a three-year cohort period. The 
Department calculates and releases to institutions the draft CDRs in 
February (i.e., ``draft cycle''), and calculates and releases the 
official CDRs to institutions and the public in September (i.e., 
``official cycle''). Throughout the annual cycle, the Department gives 
institutions an opportunity to challenge, appeal, and request 
adjustments to their CDRs based on a number of factors governed by 
statute and the Department's regulations. The basis for such 
challenges, appeals, and requests for adjustments may include: 
Incorrect data adjustments, participation rate index challenges, 
uncorrected data adjustments, new data adjustments, erroneous data 
appeals, loan servicing appeals, economically disadvantaged appeals, 
participation rate index appeals, average rate appeals, and thirty-or-
fewer borrower appeals.
    Institutions that believe that their CDR is inaccurate, or that 
believe they should not be subject to sanction or provisional 
certification based on certain mitigating circumstances, may submit a 
data challenge during the draft cycle or request an adjustment or 
appeal during the official cycle. An institution may allege that the 
Department used inaccurate data for specific loan records in the 
calculation of the institution's CDR. The appropriate data manager and 
the Department review and respond to each allegation. Note: Data 
managers are determined on the basis of the holder of the loan. For 
FFEL Program loans held by the lender or its guaranty agency, the 
guaranty agency is the data manager for the purpose of the appeal. If 
the Department is the holder of the FFEL Program loan, then the 
Department is the data manager. For Direct Loans, the Direct Loan 
servicer is the data manager. When the data manager and the Department 
agree with the allegation, the data is corrected by the data manager. 
If the data manager and the Department disagree with the institution's 
allegations (i.e., find that the data used was correct), then no change 
will be made. An institution not subject to sanction or provisional 
certification has no further recourse if a data manager and the 
Department disagree with their allegation.
    For the most recent cohort year, 2011, over 357 institutions 
submitted data challenges for the three-year draft CDR. Of the 357 
institutional data challenges, the submissions ranged from data 
challenges containing as few as one allegation to as many as 1,500 
allegations per challenge.
    The GE regulations establish a debt-to-earnings (D/E) rates measure 
to determine whether a GE program prepares students for gainful 
employment in a recognized occupation. The D/E rates measure is based 
on the typical loan debt and earnings of students who previously 
completed the program. The Department calculates two D/E rates measure: 
One based on annual earnings and one based on discretionary income. The 
GE regulations also require institutions to disclose to current and 
prospective students information about the institutions' GE programs. 
These disclosures may include the following calculations: Median 
earnings, completion and withdrawal rates, repayment rate, median loan 
debt, and a program-level cohort default rate (pCDR). We refer to the 
D/E rates calculations and the calculations for purposes of the 
disclosure requirements as the ``GE calculations.'' The Department 
estimates that it will receive over 300,000 challenges to the data used 
to calculate draft D/E rates measure in the first year in which the 
Department calculates rates under the GE regulations. (79 FR 64993, 
65004) The Department also expects to receive challenges, requests for 
adjustments, and appeals with respect to the other GE calculations.
    The DCAS System, as an enhanced successor system to the eCDR 
Appeals system, will help address the rising volume of data challenges, 
requests for adjustments, and appeals that institutions electronically 
submit to FSA.
    The DCAS System will: (1) Allow institutions to electronically 
challenge the data used in their CDRs and GE calculations; 
electronically request adjustments to and appeal their official CDRs 
and pCDRs; and electronically appeal their final D/E rates calculation; 
and (2) provide capability to FSA and

[[Page 56971]]

data managers to electronically view and respond to those challenges, 
requests for adjustments, and appeals.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.thefederalregister.org/fdsys. At this site you can view this document, as well 
as all other documents of the Department published in the Federal 
Register, in text or Adobe 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 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.


    Delegation of Authority:  The Secretary of Education has 
delegated authority to Matthew Sessa, Deputy Chief Operating 
Officer, Federal Student Aid, to perform the functions and duties of 
the Chief Operating Officer.

Matthew Sessa,
Deputy Chief Operating Officer, Federal Student Aid Delegated Duties of 
the Chief Operating Officer, Federal Student Aid.
    For the reasons discussed in the preamble, the Chief Operating 
Officer, Federal Student Aid (FSA), U.S. Department of Education 
(Department) publishes a notice of an altered system of records, to 
read as follows:
SYSTEM NUMBER:

18-11-18

SYSTEM NAME:
    Data Challenges and Appeals Solutions (DCAS) System.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATIONS:
    (1) Operations Performance Division, Gainful Employment Team, 
Federal Student Aid, U.S. Department of Education, Union Center Plaza, 
830 First Street NE., Room 62A4, Washington, DC 20202-5353.
    (2) Virtual Data Center (VDC), Dell Systems, 2300 W. Plano Parkway, 
Plano, TX 75075-8427 (Department's Contractor).

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    The DCAS System contains records on all recipients under title IV 
of the Higher Education Act of 1965, as amended (HEA), who receive 
loans, grants, or work-study. Although the DCAS System contains 
information about institutions associated with individuals, this system 
of records notice pertains only to individuals protected under the 
Privacy Act of 1974, as amended (Privacy Act).

CATEGORIES OF RECORDS IN THE SYSTEM:
    The DCAS System contains records regarding: (1) Student/borrower 
identifier information including Social Security number and name; (2) 
loan information (e.g., last date of attendance, date entered 
repayment, default date); (3) student status information (e.g., program 
enrollment information, dates of enrollment, amounts paid for tuition 
and fees); and (4) documentation submitted by an institution of higher 
education (institution) or data manager to support its data challenges, 
requests for adjustments, or appeals (e.g., enrollment verification, 
copies of cancelled checks, etc.). Note: Data managers are determined 
on the basis of the holder of the loan. For FFEL Program loans held by 
the lender or its guaranty agency, the guaranty agency is the data 
manager for the purpose of the appeal. If the Department is the holder 
of the FFEL Program loan, then the Department is the data manager. For 
Direct Loans, the Direct Loan servicer is the data manager.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    20 U.S.C. 1001, 1002, 1082, 1085, 1088, 1094, 1099c.

PURPOSE(S):
    The information contained in the records maintained in this system 
is used for the following purposes:
    (1) To allow institutions to electronically challenge, request 
adjustments to, and appeal their cohort default rates (CDRs) and 
calculations (GE calculations) required under the Department's 
regulations that apply to educational programs that are required to 
prepare students for gainful employment in a recognized occupation (GE 
regulations).
    (2) To allow FSA and data managers to electronically view and 
respond to these challenges, requests for adjustments, and appeals from 
institutions.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    The Department may disclose information contained in a record in 
this system of records 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 to the 
institution or data manager responsible for entering the information 
into the DCAS System, in order to provide an institution with an 
opportunity to challenge the accuracy of the data and the calculations 
made by the Department using that data, and to obtain clarification or 
additional information to assist in determining the outcome of the 
challenges, requests for adjustments, or appeals.
    (2) Disclosure for Use by Other Law Enforcement Agencies. The 
Department may disclose information to any Federal, State, local, or 
foreign agency, or other public authority responsible for enforcing, 
investigating, or prosecuting violations of administrative, civil, or 
criminal law or regulation if that information is relevant to any 
enforcement, regulatory, investigative, or prosecutorial responsibility 
within the receiving entity's jurisdiction.
    (3) Enforcement Disclosure. In the event that information in this 
system of records indicates, either on its face or in connection with 
other information, a violation or potential violation of any applicable 
statutory, regulatory, or legally binding requirement, the Department 
may disclose the relevant records to the appropriate agency, whether 
foreign, Federal, State, tribal, or local, charged with the 
responsibility of investigating or prosecuting that violation or 
charged with enforcing or implementing the statute, Executive order, 
rule, regulation, or order issued pursuant thereto.
    (4) Litigation and Alternative Dispute Resolution (ADR) Disclosure.
    (a) Introduction. In the event that one of the parties listed below 
is involved in litigation or ADR, or has an interest in 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 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 for the employee.
    (iv) Any Department employee in his or her individual capacity 
where the

[[Page 56972]]

Department has agreed to represent the employee.
    (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 DOJ. If the Department determines that disclosure 
of certain records to DOJ is relevant and necessary to 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 the litigation or ADR to disclose certain 
records to an adjudicative body before which the Department is 
authorized to appear, to an individual, or to an entity designated by 
the Department or otherwise empowered to resolve or mediate disputes, 
the Department may disclose those records as a routine use to the 
adjudicative body, individual, or entity.
    (d) Disclosure to Parties, Counsel, Representatives, or Witnesses. 
If the Department determines that disclosure of certain records to a 
party, counsel, representative, or witness is relevant and necessary to 
the litigation or ADR, the Department may disclose those records as a 
routine use to the party, counsel, representative, or witness.
    (5) Freedom of Information Act (FOIA) and Privacy Act Advice 
Disclosure. The Department may disclose records to DOJ or the Office of 
Management and Budget if the Department concludes that disclosure would 
help in determining whether particular records are required to be 
disclosed under the FOIA or the Privacy Act.
    (6) 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. Before entering into such a contract, the Department 
shall require the contractor to maintain Privacy Act safeguards as 
required under 5 U.S.C. 552a(m) with respect to the records in the 
system.
    (7) Congressional Member Disclosure. The Department may disclose 
the records of an individual to a member of Congress or the member's 
staff in response to an inquiry from the member made at the written 
request of that individual. The member's right to the information is no 
greater than the right of the individual who requested the inquiry.
    (8) Disclosure in the Course of Responding to Breach of Data. The 
Department may disclose records to appropriate agencies, entities, and 
persons when (1) it is suspected or confirmed that the security or 
confidentiality of information in the DCAS System has been compromised; 
(2) the Department has determined that as a result of the suspected or 
confirmed compromise, there is a risk of harm to economic or property 
interests, identity theft or fraud, or harm to the security or 
integrity of the DCAS System or other systems or programs (whether 
maintained by the Department or by another agency or entity) that rely 
upon the compromised information; and (3) the disclosure is made to 
such agencies, entities, and persons who are reasonably necessary to 
assist the Department in responding to the suspected or confirmed 
compromise and in helping the Department prevent, minimize, or remedy 
such harm.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    None.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records are maintained in a database on the Department's secure 
servers and in other electronic storage media.

RETRIEVABILITY:
    Records are retrieved by a unique institution of higher education 
code number provided by the Department to participating institutions 
and the borrower's Social Security number.

SAFEGUARDS:
    Access to the records is limited to authorized personnel only. All 
physical access to the Department's site, and to the site of the 
Department's contractor 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.
    The computer system employed by the Department and by the 
Department's contractor 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 
an individual user's ability to access and alter records within the 
system. All users of this system of records are given a unique user 
identification. The Department's Federal Student Aid Information 
Security Privacy Policy requires the enforcement of a complex password 
policy. In addition, users are required to change their password at 
least every 60 to 90 days in accordance with the Department's 
information technology standards. At the principal site of the 
Department's contractor in Plano, Texas, additional physical security 
measures are in place and access is monitored 24 hours per day, 7 days 
a week.

RETENTION AND DISPOSAL:
    The records associated with an institution's challenges, requests 
for adjustments, or appeals are currently unscheduled pending National 
Archives and Records Administration (NARA) approval of a records 
retention schedule. Until a NARA-approved records schedule is in 
effect, no records will be destroyed.

SYSTEM MANAGER(S) AND ADDRESS:
    Nikki Harris, Operations Performance Division, Gainful Employment 
Team, U.S. Department of Education, Federal Student Aid, Union Center 
Plaza, 830 First Street NE., Room 62A4, Washington, DC 20202-5353.

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

RECORD ACCESS PROCEDURE:
    If you wish to gain access to your record in the system of records, 
contact the system manager at the address listed under SYSTEM MANAGER 
AND ADDRESS. Requests should contain your full name, address, and 
telephone number. Your request must meet the requirements of 
regulations in 34 CFR 5b.5, including proof of identity.

CONTESTING RECORD PROCEDURE:
    If you wish to contest the content of a record regarding you in the 
system of records, contact the system manager. Your request must meet 
the requirements of the regulations in 34 CFR 5b.7, including proof of 
identity.

RECORD SOURCE CATEGORIES:
    Information maintained in this system of records is obtained from 
institutions of higher education, data managers, and other FSA systems 
of records, including the National Student Loan Data System (18-11-06).

EXEMPTIONS CLAIMED FOR THIS SYSTEM:
    None.

[FR Doc. 2015-23633 Filed 9-18-15; 8:45 am]
 BILLING CODE 4000-01-P