§1018b Administrative simplification of student aid delivery

Summary

Requires the Secretary of Education and the Chief Operating Officer to help create and use voluntary technical rules so student aid information can be sent electronically. The COO must join and work with official standards groups, encourage colleges and others to develop common forms and procedures inside those groups, and may pay membership fees. The Secretary should consider adopting the agreed standards (except the common financial reporting form under section 1090(a)) and common data elements so Department systems and other participants can exchange information electronically. Schools and lenders may use a clearinghouse or servicer to follow the standards. Any group handling covered transactions must keep the data safe and private and protect it from likely threats or unauthorized use or release. Definitions: clearinghouse — an entity that converts nonstandard data into the agreed standard; standard setting organization — an ANSI‑accredited group that makes needed information standards and allows participation by student aid partners; voluntary consensus standard — a standard made or used by such an organization.