((a)) ** Prohibition** Except as described in subsection (b), nothing in this chapter shall be construed to authorize the development, implementation, or maintenance of a Federal database of personally identifiable information on individuals receiving assistance under this chapter, attending institutions receiving assistance under this chapter, or otherwise involved in any studies or other collections of data under this chapter, including a student unit record system, an education bar code system, or any other system that tracks individual students over time.

((b)) ** Exception** The provisions of subsection (a) shall not apply to a system (or a successor system) that—

((1)) is necessary for the operation of programs authorized by subchapter II, IV, or VII; and

((2)) was in use by the Secretary, directly or through a contractor, as of the day before .

((c)) ** State databases** Nothing in this chapter shall prohibit a State or a consortium of States from developing, implementing, or maintaining State-developed databases that track individuals over time, including student unit record systems that contain information related to enrollment, attendance, graduation and retention rates, student financial assistance, and graduate employment outcomes.