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S. 1401 (110th): Student Financial Aid Data Privacy Protection Act

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.


5/15/2007--Introduced. Student Financial Aid Data Privacy Protection Act - Amends the Higher Education Act of 1965 to direct the Secretary of Education to take actions necessary to maintain confidence in the National Student Loan Data System, at a minimum: (1) ensuring that guaranty agencies, lenders, and schools primarily access it for legitimate program operations; (2) prohibiting nongovernmental researchers or policy analysts from accessing personally identifiable information; (3) creating a disclosure form for actual and potential students describing the contents of, and access to, the system; (4) requiring guaranty agencies, lenders, and schools to inform borrowers of Federal Family Education Loans, Direct Loans, and Perkins Loans that such a loan will be submitted to the system and accessible to such entities; (5) regularly review the system to delete inactive users, monitor use, and ensure that data is not used for marketing purposes; and (6) developing standardized protocols for limiting access.

Requires the Secretary to study and report to Congress on: (1) mechanisms giving borrowers the option of restricting lender access to their system records; and (2) appropriate risk-based protocols for limiting access.