You have to give references on you student loan apps that are friends/family for just this purpose. I’m sure it’s their first line of defense when they lose contact with someone. Whey did I trust the inquirer, mostly because I’m a trusting person and I wasn’t giving out any information other than and address and/or a phone number (it’s been a while). Why? Because I’m an honest person and believe others should be, too. They took out the loan, they weren’t in any sort of hardship, so they should be paying back the money as they agreed.
1) Since you're so honest, I bet that you immediately picked up the phone and told your "friend" that you had informed on him, right?
2) You are not entitled to be so "trusting" when it comes to betraying someone else's interests - and I doubt that you'd be pleased to learn that someone else - a neighbor, perhaps - had "volunteered" so-called "harmless" information (maybe your license plate number, or where you work, or if you're on vacation - you know: stuff that is generally known) about you to some stranger who had "dropped by" and claimed to have a legitimate reason for asking.
Regards,