§1018b Administrative Simplification of Student Aid Delivery

Summary

The Secretary of Education and the Chief Operating Officer must promote and take part in creating voluntary electronic data standards so student aid information can move more easily and efficiently. The Chief Operating Officer must join standard-setting groups, encourage colleges and other higher education groups to work inside those groups, and may pay necessary dues and fees to participate. The Secretary should consider using the standards those groups agree on for transactions under subchapter IV and for common data elements, except for the common financial reporting form under section 1090(a). Schools and lenders may use a clearinghouse or servicer to follow the standards. Any organization that keeps or sends information covered by these rules must use reasonable administrative, technical, and physical safeguards to keep data accurate and private and to protect against likely security threats and unauthorized use or disclosure. Definitions: Clearinghouse — an entity that converts nonstandard data into the agreed standards. Standard setting organization — an ANSI‑accredited group that makes data and transaction standards and is open to the student aid community. Voluntary consensus standard — a standard made or used by that organization.