As you saw in this space earlier in the week, along side that other more sensational student loan scandal, there have been increasing calls for greater vigilance regarding how student loan companies utilize theNational Student Loan Data System.

It has been suggested that lenders have used this database, which includes the full range of personal information on tens of millions of students, well beyond its prescribed purpose and have done so for some time without adequate enforcement or oversight. Members of congress have also been loudly critical of the Department of Ed's failure to shore up protections for the sensitive data the system contains.

Last night the Department of Education, while defending its internal practices and personnel, shut off outside access to NSLDS. The shut down was described as temporary, and no doubt would never have happened if the student loan conflict of interest scandal wasn't heating up the papers.

Further details here, via the NYT.

-- MDT

Labels: data breach, data brokers, student loans