Information most often is shared between federal agencies, a congressional report shows. The sharing is possible because of increasing technology and information sharing agreements between departments.
"There's a lot of information sharing now, especially after September 11, and I think it's important for students to know how the information on their applications is being used," said Paula Bruening, staff counsel at the Center for Democracy and Technology.
Bruening said it is feasible for wary financial aid applicants to avoid having their information read, namely by reading the fine print.
"I would recommend looking at the disclosures on applications," she said. "If the application doesn't have a disclosure, consult with the school and ask them what other institutions may see the application."
She also said certain questions might only need to be answered if a person is applying to a specific school or program. But added that overall, students should be careful when providing highly personal information.
"The most important thing is to protect your Social Security number because it provides all sorts of information about your medical, financial and work records," said Bruening.
"Students are protected by certain legislations like the Family Educational Right to Privacy Act," she said. The legislation largely prevents the sharing of students' personal information.
But there are some circumstances in which others need to see information on students, including those at UNC.
"In general, everyone is on a computer somewhere," said Mary Sechriest, UNC's FERPA expert and associate University counsel.