2006 Spring MASFAP CONFERENCE

1. 2006 Spring MASFAP CONFERENCE • Ginny D’Angelo • Vice President of Student Loans • Commerce Bank • Leo Hertling • Associate Director • St. Louis College of Pharmacy

2. GRAMM-LEACH-BLILEYGLB ACT Financial Modernization Act of 1999

3. Gramm-Leach-Bliley Act GLB is a federal law, which includes provisions in requiring financial institutions to take steps ensuring the security and confidentiality of a consumers/customers personal information. In 2003, the Federal Trade Commission (FTC) confirmed that higher education institutions are considered financial institutions under this law.

4. Gramm-Leach-Bliley Act • Colleges and universities must be in compliance with provisions of the GLB Act that relate to the Safeguards Rule. • Colleges and universities that already comply with FERPA will be deemed to be in compliance with FTC privacy rules under the GLB Act.

5. Gramm-Leach-Bliley Act The law requires that institutions must protect information collected about individuals: • Names • Addresses and phone numbers • Bank and credit card accounts • Social Security numbers • Income and credit histories

6. Gramm-Leach-Bliley Act According to the Safeguards Rule, financial institutions must develop a written information security plan that describes their program to protect customer information. Privacy notices explaining an institution’s information-sharing practices must also be provided to each customer.

7. Gramm-Leach-Bliley Act Experts suggest that three areas of operation present special challenges and risks to information security: • Employee training and management • Information systems (network and software),storage,transmissions and retrievals • Security management, including prevention, detection and response to attacks, intrusions or other system failures

8. Gramm-Leach-Bliley Act Quick Tips for Safeguarding information: • Identify what is considered sensitive information • Protect all sensitive information from unauthorized access or use • Put safeguarding into practice • Report suspicious activity

9. How does this apply to you? • Privacy of Information – FERPA • Safety of Information

10. Which Units are Most Affected by GLB? • Registrar • Financial Aid Office • Bursar • Development Office • IT • Academic Departments

11. Privacy of Information • FERPA – Family Educational Rights & Privacy Act (1974) • If you are FERPA-compliant, you are meeting GLB criteria to protect information privacy • FERPA protects privacy of all student educational records and financial information

12. FERPA Policies • Written policy – College Catalogue • Staff training; i.e., memos from Registrar’s Office to faculty & staff regarding FERPA policy • Information is shared on a “need to know” basis, i.e.: Audits Law enforcement officials (must have proper documentation and credentials) Contracted services (loan, collection agencies) Development Office

13. Rights Guaranteed under FERPA • Right to inspect and review educational records • Right to seek amendment of educational records • Right to have control over the disclosure of educational records • Right to file a complaint with ED for alleged failures of an institution’s compliance

14. MAY NOT SHARE Social Security # Student ID # Race Ethnicity Nationality Gender What Can Be Shared? • MAY SHARE • Name • Address • telephone # • Major • DOB and location • Photo • Dates of attendance • School activities • Enrollment status • Most recent previous school attended

15. Dealing with Parents • Major differences between FAO policies and those of the Registrar • For the Registrar • Parents may have access to student records if: • They have obtained a SIGNED AND WRITTEN CONSENT or the student • If the student is under the age of 24 and was claimed by the parent in the prior tax year, the parent may access the students records after the student has been advised of the institution’s intention to release information to the parent. You must give the student adequate time to respond. • You must return the tax return to the parent. You do not have the right to keep it. Simply document that you checked it and that the student was claimed. • If the student objects, the parent must obtained a signed written consent before records may be released. • School must maintain records of the request and ANY disclosures

16. The FAO and Parents • Parents of dependent students are afforded the right to access a student’s financial records. • This applies for Dependent students in terms of IRS dependency. NOT TIV aid terms. • FAOs may have student sign an annual waiver granting the parents access on an annual basis.

17. Dealing with Spouses • FERPA does not recognize spouses therefore they must be treated as unrelated 3rd parties • As such, spouses have NO rights to a student’s educational or financial aid records. • Period end of discussion.

18. GLB extends FERPA • If your institution makes loans to parents and other individuals, you must also protect their privacy • These loans can include: PLUS Alternative Parent Loans

19. Safeguard Rule • Institutions must develop a written information security plan to protect customer information • Institutions must send privacy notices explaining the information-sharing practices to each customer

20. Safeguards Rule Expanded • Must include plans to safeguard information against: • Natural Disaster • Human Error • Fraud • Data corruption • Theft (hardware, software, reports) • Unauthorized access

21. Safeguards Rule (cont) • Natural Disaster (Earthquake, hurricane, flood, tornado, etc.) • Is your data backed up in a remote location? • Do you lock your computer when you leave your work station during fire alarms – or any other time, for that matter!?

22. Safeguards Rule (cont) • Deliberate Fraud • Must maintain a separation of duties • Conflict of interest policies must be observed • Human Error • Do you have audit trails and reports that can be used to reconstruct data

23. Safeguards Rule (cont) • Data Corruption • Protect and secure access to data, i.e., limit query vs. update capability on a “need-to-do” basis, limit student worker access as needed • Anti-virus software must be maintained and applied • Institution must erect firewalls and develop protection against hackers

24. Safeguards Rule (cont) • Must secure against theft of hardware, software and reports • Secure during non-business hours: offices locked, keys secured • Approved shredder: eliminates guess work in how to feed in documents

25. More Safeguards • Must protect against unauthorized access • Frequent password changes should be systematically required • Reports sent on a “need-to-know” basis • Computer privacy shields • Student ID card readers – prevents inappropriate overhearing of SIDs or SSNs

26. More Safeguards • Communicating to students via e-mail: • Use student’s institutional e-mail address • Respond to non-institutional e-mail that an answer has been sent to the student’s institutional e-mail address • Respond to parent inquiries through student’s institutional e-mail and ask student to forward to parent • Mass e-mail communication to students should take student’s to a secure web site that protects their individual information

27. Whose Responsible Anyway? • Identify and involve all offices involved with loans or collection of data • FAO • Business Office • IT/Computer Systems • Development • Academic departments (scholarship applications)

28. Who’s the Compliance Officer? • Someone must be designated the institutional Compliance Officer • This function is usually assumed by the Business and Finance Division • At STLCOP our registrar is our CO • FAO responsibility rests in informing potential units of GLB responsibility

29. FAO GLB Policies • Shred all student-specific documents • Policy for identifying students and parents before sharing data • Refer non-student/parent requests (3rd party) to appropriate staff • Report computer problems immediately

30. Additional FAO Policies • Don’t share passwords. Problem: What do you do when an employee is absent and you need to access information on his/her computer? • Lock computers when leaving work area • Computer screens shielded from other students • No visitor left behind – or unattended!

31. Resources • US Department of Education • http://www.ed.gov/policy/gen/guid/fpco/ferpa/index.html • FSA Handbooks 05-06 • Recordkeeping and Disclosure Chapter 2 156-164 • The Blue Book • Chapter 7 Record Keeping and Disclosure pp 1-93 – 1-104 • Ramirez, Clifford (2002) Managing the Privacy of Student Records, LRP Publications, Horsham PA

32. CONTACT INFORMATION Ginny D’Angelo (800) 666-3910 Fax: (314) 514-6228 Ginny.dangelo@commercebank.com Leo Hertling 314/446-8321 fax# 314/446-8310 lhertling@stlcop.edu