INTRODUCTION
The Department of Education (Department) continues to take steps to ensure the confidentiality, security, and integrity of student and parent information related to the federal student aid programs. Protecting that information is a shared obligation among the Department, institutions, third-party servicers, and other partners in the financial aid system. We expect all of our partners to maintain strong security policies and effective internal controls to prevent unauthorized access or disclosure of sensitive information.
The Gramm-Leach-Bliley Act (GLBA), which was signed into law on November 12, 1999, created a requirement that financial institutions must have certain information privacy protections and safeguards in place. The Federal Trade Commission (FTC) has enforcement authority for the requirements and has determined that institutions of higher education (institutions) are financial institutions under GLBA.
Each institution has agreed to comply with GLBA in its Program Participation Agreement with the Department. In addition, as a condition of accessing the Department’s systems, each institution and servicer must sign the Student Aid Internet Gateway (SAIG) Enrollment Agreement, which states that the institution must ensure that all federal student aid applicant information is protected from access by or disclosure to unauthorized personnel.
