To Title IV Program Participants

From: Susan Szabo, Chief Business Operations Officer

Federal Student Aid

Re: Access to NSLDS – Update #2

Date: April 27, 2007

This message is the second update to the community related to our April 17, 2007, decision to
suspend NSLDS web access for certain program participants.

We are currently finalizing plans to begin, on a phased-in basis, the reinstatement of NSLDS web
access to some of those entities whose access has been suspended. However, reinstatement will
not begin for an entity until it has complied with certain conditions that will be specified in a
separate communication to each entity.

At this point in our review of NSLDS access and use, we wish to inform all entities that have or
will have NSLDS web access of several changes we have made to the NSLDS web access
process. These enhancements are designed to better ensure that Privacy Act protected
information is only accessed by authorized persons and only for authorized purposes.

Beginning Monday, April 30, 2007, all users who wish to access NSLDS data will, after logging
into NSLDS, be prompted with a box that contains text with several random letters and/or
numbers. The user must correctly enter the information displayed in that box in order to receive
authorization to continue into NSLDS. Also beginning this weekend, all queries into NSLDS
using web access will require the user to provide, in addition to the borrower’s social security
number, the borrower’s date of birth and the borrower’s first name.

Finally, also beginning immediately, the on-line registration process for requesting User IDs for
new users of NSLDS web access and for adding NSLDS web access for existing users has been
suspended. We will provide information on a revised NSLDS registration process in a
subsequent update.