November 19, 2025

The Family Educational Rights and Privacy Act (FERPA) was signed into law on August 21, 1974. It was enacted during a time when records were written on papers and physically kept in shelves and cabinets. The “education records” had a different form, were stored differently and were transmitted physically. Nevertheless, in today’s society where technology has now advanced to an unimaginable speed and extent, FERPA proved to be one of those laws that stood the test of time, did not become obsolete, and has continuously evolved along with the innovations in our technology.

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The Digital Learning Environment

Educational institutions are increasingly relying on digital platforms to support classroom instruction, student engagement, and administrative operations. From cloud-based learning management systems and virtual classrooms to artificial intelligence tools and educational applications, technology has transformed how schools collect, store, and share student information. While these innovations create new opportunities for personalized learning and operational efficiency, they also require institutions to carefully consider how student data is protected throughout its lifecycle.

Against this evolving technological landscape, FERPA remains the primary federal law governing the privacy of student education records. Although FERPA has protected student information for decades, today’s digital learning environment presents compliance considerations that extend well beyond maintaining paper records or limiting physical access to student files. Schools, colleges, universities, and educational technology providers should continually evaluate whether their privacy practices keep pace with the technologies they adopt.

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Why FERPA Remains Central to Student Privacy

FERPA applies to educational agencies and institutions that receive funding from the U.S. Department of Education and establishes important protections for student education records. The law grants parents—and eligible students once they reach age 18 or attend a postsecondary institution—the right to inspect education records, request corrections in certain circumstances, and generally control the disclosure of personally identifiable information contained within those records.

As educational services increasingly rely on third-party technology providers, institutions should also recognize that outsourcing technology functions does not eliminate their responsibility to safeguard student information. Learning management systems, cloud storage providers, communication platforms, and other educational technology vendors often process sensitive student data on behalf of schools. Selecting appropriate vendors, establishing clear contractual expectations, and understanding how student information is collected, used, and retained have therefore become important components of a comprehensive FERPA compliance program.

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What exactly does FERPA protect

FERPA protects the privacy of parents and children by ensuring the confidentiality of education records. It defines “education records” as those that are (1) directly related to a student, and (2) maintained by an educational agency or institution by a party acting for the agency or institution. The same law also provides for the exceptions:

• Records in the maker’s sole possession that are used as a memory aid and are accessible or revealed only to the maker or a substitute;
  
• Records that are kept by a law enforcement unit of an educational agency which was established for law enforcement;
  
• Records created by a nonstudent school employee in the normal course of business and that relate solely to such person as an employee and has no other purpose;
  
• Records that pertain to the medical, including psychiatric, information of a student who is either at least 18 years old or is attending an institution of higher education (IHE), and that were created, kept and utilized for the sole purpose of providing treatment to the said student and disclosed only to those who provide such treatment;
  
• Records created or received after a student is no longer in attendance and that are not directly related to their attendance as a student; and
  
• Grades on papers graded by peers (prior to being collected and recorded).

Case in point, the 6th Circuit Court of Appeals held that disciplinary records were education records subject to protection, as contemplated in FERPA. Thus, disclosure of disciplinary records to the general public would amount to the violation of FERPA.

Today, the challenges of keeping the confidentiality of education records have been compounded by the encoding of this information in various digital platforms, which can result in the access of unauthorized individuals, if not properly secured.

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Education Records in the Digital Age

The advances in educational technology have changed the systems in place with regard to the collection and storing of educational records and other student information. Modern educational environments generate significantly more digital information than traditional classrooms. Student records may now include online coursework, virtual classroom participation, assignment submissions, communications through educational platforms, and information maintained within cloud-based applications. Compared to the 1970s when education records were on paper which had to be physically retrieved in storage units, education records today can easily be transmitted in just under a second with one click. This, thus, introduces more complex considerations in the protection of student information, making compliance not as straightforward as it was before.

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Technology Has Expanded Student Privacy Considerations

As institutions adopt artificial intelligence tools and other emerging technologies, they should also consider whether existing privacy policies, internal procedures, and data governance practices adequately address these evolving methods of collecting and processing student information.

The U.S. Department of Education has issued guidance emphasizing that educational institutions remain responsible for protecting education records when using online educational services. That guidance reinforces the importance of understanding how third-party providers access student information, limiting data use to authorized educational purposes, and implementing appropriate safeguards to protect student privacy.

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What happens when FERPA is violated

Before delving right into the punishments, it is important to note that both educational institutions and third parties may be penalized for their failure to comply with FERPA. Third parties include entities that are recipients of the Department of Education’s funds, pursuant to the programs administered by the Secretary. In case of violation, the Secretary can: (1) withhold funds, (2) issue a complaint to have the erring entity comply through a cease-and-desist order, or (3) cancel the erring entity’s eligibility to be a recipient of funding. The erring third party may also be denied access to personally identifiable information for a minimum of five years. Effectively, an educational institution may be defunded, and an online educational platform whose services involve the processing of education records may be cut-off from accessing the primary data it needs to function as an enterprise.

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Building a Strong FERPA Compliance Program

Effective FERPA compliance extends beyond understanding the statute’s disclosure requirements. Educational institutions should periodically review whether employees receive appropriate privacy training, whether access to student records is limited to individuals with legitimate educational interests, and whether institutional policies accurately reflect current technology practices.

Institutions may also benefit from evaluating vendor agreements, reviewing data retention practices, and ensuring that privacy notices clearly explain how student information is collected, maintained, and disclosed. As educational technologies continue to evolve, regularly assessing these practices can help reduce privacy risks while supporting transparency and accountability.

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We’re Here to Help

Educational institutions and educational technology companies face increasing pressure to embrace innovation while protecting sensitive student information. Developing a thoughtful FERPA compliance strategy can help organizations navigate changing technologies, strengthen privacy governance, and reduce regulatory risk.

The Data Privacy Lawyer PLLC advises educational institutions, colleges and universities, and EdTech companies on FERPA compliance, privacy program development, vendor management, data governance, and regulatory preparedness. Whether your organization is implementing new learning technologies, reviewing third-party vendor relationships, or strengthening its overall student privacy program, proactive legal guidance can help support both compliance objectives and long-term institutional success.

As digital education continues to evolve, maintaining a comprehensive approach to FERPA compliance remains an important step toward protecting student information, promoting trust, and supporting responsible innovation.

Disclaimer: This article is for informational purposes only and is not legal advice. Because legal obligations differ across U.S. jurisdictions, readers should seek counsel from a licensed attorney in their area—particularly in Washington, D.C.—before making any business or legal decisions.

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