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Department of Education/IRS Computer Matching Agreement Recertified

The Computer Matching Agreement (CMA) Program between the Department of Education and the IRS that assists the Department in tracking down students who have defaulted on certain loans or owe grant overpayments has been recertified. The program first became effective on February 14, 2001, was recertified for 12 months on August 13, 2002, and is now effective beginning on that date for an additional 18 months, with a possible 12-month extension from that point.

This program allows the Department to transmit to the IRS the Social Security Number and first four letters of the surname of individuals who have defaulted on loans made under Title IV Higher Education Act (HEA) loan programs, or who owe a grant overpayment to the Department under Title IV of the HEA. The IRS will match this information against their system of records for taxpayers, and will provide to the Department the most recent address of the individual matching this information; the Department will then use this address to attempt to collect on the owed amounts. The Secretary of Education is allowed to provide this information to any lender, guarantee agency, or educational institution that the Secretary has an agreement with under Title IV for collection purposes.

This matching program is a valuable tool for the Department of Education to recover defaulted funds from the Title IV HEA loan and grant programs. To read the complete notice containing effective dates of the program and contact information if you have any questions, access the August 18, 2003 Federal Register at http://www.gpoaccess.gov/fr/index.html

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