---
kind: "section"
citation: "20 U.S.C. § 1018b"
title: "20"
title_heading: "Education"
number: "1018b"
heading: "Administrative simplification of student aid delivery"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/1018b"
units:
  - "Chapter 28 — Higher Education Resources and Student Assistance"
  - "Subchapter I — General Provisions"
  - "Part D — Administrative Provisions for Delivery of Student Financial Assistance"
---

# §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](/usc/20/1003.md?p=17) and the Chief Operating [Officer](/usc/20/1019.md?p=7) 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](/usc/20/1019.md?p=7) shall participate in the activities of standard setting organizations in carrying out the provisions of this section.
  - (2) The Chief Operating [Officer](/usc/20/1019.md?p=7) 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](/usc/20/1019.md?p=7) may pay necessary dues and fees associated with participating in standard setting organizations pursuant to this subsection.
- (c) **Adoption of voluntary consensus standards—** Except with respect to the common financial reporting form under [section 1090(a) of this title](/usc/20/1090.md?p=a), the [Secretary](/usc/20/1003.md?p=17) shall consider adopting voluntary consensus standards agreed to by the organization described in [subsection (b)](#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](/usc/20/1003.md?p=4) 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](/usc/20/1019.md?p=6) 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](/usc/20/1067k.md?p=1) 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)](#f-2).

## Source credit

(Pub. L. 89–329, title I, § 143, as added Pub. L. 105–244, title I, § 101(a), Oct. 7, 1998, 112 Stat. 1615.)

## Notes

### Editorial Notes

### Prior Provisions

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

Section 1018b, Pub. L. 89–329, title I, § 143, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1515, related to use of funds.

Section 1018c, Pub. L. 89–329, title I, § 144, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1515; Pub. L. 101–610, title II, § 221(a), (b), Nov. 16, 1990, 104 Stat. 3180, related to applications.

Section 1018d, Pub. L. 89–329, title I, § 145, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1516, related to technical assistance and coordination contracts.

Section 1018e, Pub. L. 89–329, title I, § 146, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1516; Pub. L. 101–305, § 5, May 30, 1990, 104 Stat. 258; Pub. L. 101–610, title II, § 221(c), Nov. 16, 1990, 104 Stat. 3180, related to authorization of appropriations.

Section 1018f, Pub. L. 89–329, title I, § 147, as added Pub. L. 100–418, title VI, § 6201, Aug. 23, 1988, 102 Stat. 1516, defined “public community agency”, “institution of higher education” and “Secretary”.