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Student Financial Aid Database Being Misused

Posted by kdawson on from the six-solicitations-per-day dept.

pin_gween writes "The Washington Post reports on the probable abuse of the National Student Loan Data System. The database was created in 1993 to help determine which students are eligible for financial aid. Students' Social Security numbers, e-mail addresses, phone numbers, birth dates, and loan balances are in the database. It contains 60 million student records and is covered by federal privacy laws. Advocates worry that businesses are trolling for marketing data they can use to bombard students with mass mailings or other solicitations. The department has spent over $650,000 in the past four years protecting the data. However, some senior education officials are advocating a temporary shutdown of access to the database until tighter security measures can be put in place."

4 of 182 comments (clear)

  1. it's about time, but we should do more by User+956 · · Score: 5, Informative

    The Washington Post reports on the probable abuse of the National Student Loan Data System.

    Well color me surprised. Or not. Anyone in the financial services industry is well aware that students are prime targets for all sorts of jacked-up offers. That data needs protecting, but the whole credit system in this country needs a major overhaul.

    --
    The theory of relativity doesn't work right in Arkansas.
  2. Doesn't surprise me. by StarvingSE · · Score: 4, Informative

    After I was done with school, I consolidated my loans with a company that I spent some time actually researching and making sure they were reputable. However, I kept getting 10+ mailings a month from companies wanting to consolidate my loans. Then the phone calls came. I tell them all that I have already consolidated, yet they continue. It is no surprise to me that they are probably getting my info from this database.

    --
    I got nothin'
    1. Re:Doesn't surprise me. by esmrg · · Score: 4, Informative

      Examine what?
      Mail has various rates. If I grab a letter, first thing I look at is the top right hand corner. PRESRT STD. Throw way. No seriously, burn. No need to read or consider $this_offer. If anyone sends you or me anything of even the mildest importance, it's FIRST CLASS. Don't let any of the lies printed across the envelope fool you. Standard mail is always junk. However, many bills are presort first class, so be careful you notice the STANDARD or STD.
      Sometimes the firm may even have the wallet to mail a first class solicitation (although rare). In this case, they probably spent a bit more money to have you throw it away.

  3. link (.pdf) to privacy policy by ushering05401 · · Score: 4, Informative

    i posted this lower in the thread so it will probably be buried. check out #3, item (d).

    link:http://www.ed.gov/notices/pia/nslds.pdf

    they sell to 'servicers' of educational institutions and i am guessing y'all signed off on it. if you are pissed about this issue a good question might be how someone is classified as a servicer.

    regards.