§1018b Administrative Simplification of Student Aid Delivery

Summary

Require the Secretary and the Chief Operating Officer to promote and take part in creating voluntary standards for sending student aid information electronically. The Chief Operating Officer must join standards groups, urge colleges and higher‑education groups to work inside those groups when making common forms and rules, and may pay necessary dues and fees to participate. Except for the common financial reporting form under section 1090(a), the Secretary must consider adopting the consensus standards the groups agree on for transactions under subchapter IV so Department systems and other participants can exchange data electronically. Using a clearinghouse or servicer is still allowed. Anyone who keeps or sends data under these transactions must keep reasonable administrative, technical, and physical protections to keep the data accurate and private and to guard against likely security threats or unauthorized use. Definitions: clearinghouse — an entity that converts nonstandard data into standard data; standard setting organization — an ANSI‑accredited group that makes and opens standards for student aid data; voluntary consensus standard — a standard made or used by that organization.