Buzzword: National Student Loan Data System
The last thing a student wants when they're applying for a loan is to have their information sold. But thanks to this week's buzzword, some lenders have found a new way to abuse power.
Another student loan shenanagan brings us this week's Marketplace Money buzzword: National Student Loan Data System.
It's a database full of personal and financial information about millions of students. It helps lenders figure out if an applicant is eligible for a loan. But it seems some lenders think it's a data goldmine. Recently, allegations surfaced that a number of them may have given marketing firms -- and collection agencies -- access to private student information.
The Federal government got wise to it and temporarily shut down the system -- handing out a data suspension.
