20 U.S.C. § 1018b | Administrative simplification of student aid delivery

(a)

In general

In order to improve the efficiency and effectiveness of the student aid delivery system, the Secretary and the Chief Operating Officer shall encourage and participate in the establishment of voluntary consensus standards and requirements for the electronic transmission of information necessary for the administration of programs under subchapter IV.

(b)

Participation in standard setting organizations

(1)

The Chief Operating Officer shall participate in the activities of standard setting organizations in carrying out the provisions of this section.

(2)

The Chief Operating Officer shall encourage higher education groups seeking to develop common forms, standards, and procedures in support of the delivery of Federal student financial assistance to conduct these activities within a standard setting organization.

(3)

The Chief Operating Officer may pay necessary dues and fees associated with participating in standard setting organizations pursuant to this subsection.

(c)

Adoption of voluntary consensus standards

section 1090(a) of this titleExcept with respect to the common financial reporting form under , the Secretary shall consider adopting voluntary consensus standards agreed to by the organization described in subsection (b) for transactions required under subchapter IV, and common data elements for such transactions, to enable information to be exchanged electronically between systems administered by the Department and among participants in the Federal student aid delivery system.

(d)

Use of clearinghouses

Nothing in this section shall restrict the ability of participating institutions and lenders from using a clearinghouse or servicer to comply with the standards for the exchange of information established under this section.

(e)

Data security

Any entity that maintains or transmits information under a transaction covered by this section shall maintain reasonable and appropriate administrative, technical, and physical safeguards—

(1)

to ensure the integrity and confidentiality of the information; and

(2)

to protect against any reasonably anticipated security threats, or unauthorized uses or disclosures of the information.

(f)

Definitions

(1)

Clearinghouse

The term “clearinghouse” means a public or private entity that processes or facilitates the processing of nonstandard data elements into data elements conforming to standards adopted under this section.

(2)

Standard setting organization

The term “standard setting organization” means an organization that—

(A)

is accredited by the American National Standards Institute;

(B)

develops standards for information transactions, data elements, or any other standard that is necessary to, or will facilitate, the implementation of this section; and

(C)

is open to the participation of the various entities engaged in the delivery of Federal student financial assistance.

(3)

Voluntary consensus standard

The term “voluntary consensus standard” means a standard developed or used by a standard setting organization described in paragraph (2).

Pub. L. 89–329, title I, § 143 Pub. L. 105–244, title I, § 101(a)Oct. 7, 1998112 Stat. 1615(, as added , , .)

Editorial Notes

Prior Provisions

Pub. L. 102–325Prior sections 1018b to 1018f were omitted in the general amendment of this subchapter by .

Pub. L. 89–329, title I, § 143 Pub. L. 100–418, title VI, § 6201Aug. 23, 1988102 Stat. 1515Section 1018b, , as added , , , related to use of funds.

Pub. L. 89–329, title I, § 144 Pub. L. 100–418, title VI, § 6201Aug. 23, 1988102 Stat. 1515 Pub. L. 101–610, title II, § 221(a)Nov. 16, 1990104 Stat. 3180Section 1018c, , as added , , ; , (b), , , related to applications.

Pub. L. 89–329, title I, § 145 Pub. L. 100–418, title VI, § 6201Aug. 23, 1988102 Stat. 1516Section 1018d, , as added , , , related to technical assistance and coordination contracts.

Pub. L. 89–329, title I, § 146 Pub. L. 100–418, title VI, § 6201Aug. 23, 1988102 Stat. 1516 Pub. L. 101–305, § 5May 30, 1990104 Stat. 258 Pub. L. 101–610, title II, § 221(c)Nov. 16, 1990104 Stat. 3180Section 1018e, , as added , , ; , , ; , , , related to authorization of appropriations.

Pub. L. 89–329, title I, § 147 Pub. L. 100–418, title VI, § 6201Aug. 23, 1988102 Stat. 1516Section 1018f, , as added , , , defined “public community agency”, “institution of higher education” and “Secretary”.