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Right to Financial Privacy Act of 1978 (RFPA)
HEAL BULLETIN # 6
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
OFFICE OF EDUCATION
BUREAU OF STUDENT FINANCIAL ASSISTANCE
D.C. 20202
MAY 21 1979
TO: LENDERS PARTICIPATING IN THE HEALTH
EDUCATION ASSISTANCE LOAN (HEAL) PROGRAM
Right to Financial Privacy Act of 1978 (RFPA)
P.L. 95 630 was enacted on November 10, 1978, and it includes Title XI,
the "Right to Financial Privacy Act of 1973," which applies
to all financial institutions(12 U.S.C. 3401 3421). The term "financial
institution" includes any bank, savings bank, trust company, savings
and loan association, or credit union, among others. The Right to Financial
Privacy Act regulates any financial institution which provides a Federal
agency, ("Government authority") or its agents with access to
or information contained in, the financial records of a customer.
The RFPA applies to all financial institutions which are lenders in the
Health
Education Assistance Loan (HEAL) Program because these lenders disclose
identifiable information from customer records to the Office of Education
or provide CE access to customer financial records for purposes of program
reviews.
Among other provisions, the RFPA requires that when a Federal agency involved
in a loan program seeks information from a customer's financial records,
it must certify to the financial institution that the Federal agency is
complying with t applicable provisions of the RFPA. No further certification
is required by the certifying Federal agency during the term of the loan
or loan guaranty in order to meet this requirement, this bulletin constitutes
such written certification to financial institutions which are lenders
in the HEAL Program that OE has complied with applicable provisions of
the Right to Financial Privacy Act of 1978 (RFPA) particularly those which
relate to the administration of a Federal loan guaranty or loan insurance
program (12 U.S.C. 3413(h))
In addition, the RFPA requires that a Federal agency which administers
such a program must give an applicant for a loan written notice of the
agency's access rights under this Act, whenever she/he applies for participation
in the loan program. No further notification is required for subsequent
access by that agency during the term of the loan or loan guaranty. This
necessary written notice to the customer will be incorporated into the
HEAL student application form when it is revised. Effective immediately,
and until new application forms become available, lenders should provide
a copy of the following written notice to students who apply for loans:
Under the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 3421),
the U.S. Office of Education will have access to financial records in
your student loan file maintained by the lender in connection with the
administration of the Health Education Assistance Loan Program.
Finally, under this Act, a financial institution which is a HEAL lender
must keep a notation of each disclosure it makes to OE, and the date it
was made, during the administration of a loan. Such notations can be accomplished
by maintaining copies of forms submitted to OE (for example, copies of
the student application form), by maintaining copies of appropriate correspondence,
or by making notations in the loan files at the time of program reviews.
The borrower is legally entitled to inspect this information.
Sincerely yours,
David C. Bayer
Acting Chief
Health Loan Branch
Division of Policy
and Program Development
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