Can Personal Information I put on the FAFSA be sold to Third Parties?

If you fill out a FAFSA in order to see if you’re qualified for federal educational funding programs, you might be surprised at the amount of sensitive and personal information you are requested to provide. In fact, for students under the age of 24, this sensitive information will include details about parents or guardians- especially their financial information. In today’s computerized age of fast transactions, compromised data and identity theft, providing this kind of information can be unnerving- especially for students who are applying to multiple schools. Therefore, some students might question whether this information can fall into the wrong hands- namely that of annoying telemarketers and potentially dangerous scam artists or thieves. Overall, this fear is unwarranted, as the federal government protects FAFSA information. However, there are a few things you should know.

While the federal government and the United States Department of Education will keep the information you provide on the FAFSA private, they may share it with other parties in order to service the educational funding programs you are awarded. These third parties are usually required to keep your information private as well. However, if you fall behind on your student loans, your information could be given to very unfriendly collection agencies. The further behind you fall, the greater the chances are that the debt will eventually be sold. If this happens, the information from your FAFSA about you and your parents could be compromised. The best solution to prevent this is to stay up to date on all payments, or make arrangements with financial aid officials when you cannot.

One source of potential problems could be from the schools you are applying for. Most schools use a FAFSA to make determinations for internally-awarded programs such as grants and scholarships. While information security is always a concern for most schools and universities, it’s a wise idea to review the school’s privacy policies. Some schools may make your data available to third parties that might be loosely affiliated with the school, and it’s difficult to say how that entity will protect- or not protect- your information.

When you are considering filling out and submitting a FAFSA, it’s probably best to ask about privacy policies, and to gain an understanding of how your information will be used. Most schools have publicly posted privacy policies, making this task relatively easy. Just remember that the FAFSA does ask for some fairly sensitive information, so even if you don’t care how that information is used, your parents might. Food for thought.