EPIC and Student Defense Submit Comment on Treasury Department’s Takeover of Federal Student Aid Records

EPIC and Student Defense submitted a comment to the U.S. Department of Treasury (Treasury) Friday regarding its takeover of Federal Student Aid from the U.S. Department of Education (ED), in response to a System of Records Notice (SORN) published in the Federal Register on October 7. 

Treasury requested public comments on a proposal to create a new system for collecting and maintaining federal student aid records. The new setup would allow the agency to access and use student aid information to “administer, oversee, monitor, report on, and ensure compliance” in coordination with ED. 

Under this proposed system, records regarding federal student aid applicants, grant recipients and borrowers would be provided to the Treasury from three ED systems: The National Student Loan Data System (NSLDS), the Debt Management Collection System (DMCS), and Enterprise Data Management and Analytics Platform Services (EDMAPS). 

The comment submitted Friday by Student Defense and EPIC establishes seven clarifying requests for Treasury to address before implementing this new system, including: 

• Identify, by purpose and source system, the ED routine use that authorizes each disclosure of ED records into the system, and state when the Departmental Offices first received those records.
• Confine the system to what its collection oversight requires, exclude records of individuals with no student loan debt, and use deidentified data for research.
• State whether federal tax information, or values derived from it, will enter the system, and under what authority.
• Publish the data-sharing arrangement and any privacy impact assessment, delay the effective date of the routine uses until it has done so and has addressed these comments, and extend the comment period by 30 days after that publication.

“Treasury and ED must prioritize student privacy and hold themselves to the highest level of transparency if this transition proceeds,” said Abigail Kunkler, Counsel at EPIC. “Millions of students who rely on these systems expect the federal government to protect their sensitive information. It is essential that these agencies provide the transparency that is required by law and necessary to maintain trust and accountability.” 

“Treasury’s takeover of FSA raises serious legal and logistical concerns. It threatens to weaken oversight of the $1.7 trillion student loan portfolio, reduce critical support for student loan borrowers, and disrupt federal financial aid programs thousands of colleges and millions of students rely on,” said Chris Bryant, Senior Counsel at Student Defense. “It also raises serious questions about student privacy and confidential data. Treasury and ED have a responsibility to ensure their plan forward is legally sound, sustainable and actually helps students and higher education institutions before moving forward.”

Read the full comment here.