While doing some “parenting” over the weekend, I wanted to review my college-aged kids' grades, dining dollar balance, and if I owed any final balances for their spring semester. Luckily for me, both of my children go to the same great institution, so it makes parents’ weekend easy.
While I was logging into the portal their university provides to access all this information, two acronyms popped into my head: AI and FERPA.
I know most parents won’t think of this, but for someone who has been in EdTech for 25 years, it hit me. The Family Educational Right and Privacy Act (FERPA) is a student data privacy law dating back to 1974 aimed both at protecting student privacy and ensuring access to information. Until their children turn 18, the law allows parents and legal guardians mostly unfettered access to that information I was looking for. Because my kids are both over 18, those rights shift to them – and require their permission to access their records.
As I logged in as an “Authorized User/Delegate” to these accounts, I paused, and thought: How does the growing use of AI technology impact FERPA compliance?
On one hand, it presents risks to compliance. Could (and should) AI be considered a delegate too? And what implications does this have on complying with a law that restricts access to information in the name of protecting it? At the same time, AI technology actually holds promise to strengthen privacy by streamlining and automating FERPA compliance.
In this post, we’ll explore how higher education institutions can consider using AI to support FERPA compliance—along with the pros, cons, and key considerations before implementation.
Key points about FERPA
FERPA is a U.S. federal law enacted in 1974 that protects the privacy of student education records.
FERPA applies to all schools that receive federal funds which includes most public and private institutions. It lays out protections for education records held by students under 18 and gives students over the age of 18 the ability to control their education records.
Education records are defined as anything that directly relates to a student and is maintained by the institution. This includes:
- Grades
- Transcripts
- Disciplinary records
- Student account/billing information
- Class schedules
- Communications with advisor and faculty
- And more
The Promise of AI for FERPA Compliance
AI tools, when properly deployed, can play a powerful role in reducing the risks of FERPA violations and strengthening student privacy practices through:
- Automated Data Classification and Access Controls
AI can analyze large volumes of data and identify which documents contain FERPA-protected information. AI can tag the sensitive data and restrict access to only those who are authorized to view. - Auditing and Monitoring
Institutions can deploy AI for continuous monitoring of who accesses what student data, when, and why. This can help identify unauthorized data access before it becomes a compliance issue for the institution. - Training and Policy Enforcement
AI models can scan communications from staff to family members or external parties to determine if there is inappropriate sharing of information and provide real-time coaching to the staff.
The Risks of AI with FERPA
With AI being used to analyze or engage with student data, institutions have to ensure that AI complies with FERPA. Despite all the advantages AI can bring, it can become a source of compliance challenges if not implemented correctly and thoughtfully.
- Exposure of Student Data
AI systems, especially cloud-based models, may process and store sensitive data in ways that violate FERPA. If model training data includes student records and the model is not hosted in a FERPA-compliant environment, institutions could face compliance risks. When using an AI partner/vendor, institutions should verify they offer a FERPA-compliant model and data handling practices. - Lack of Understanding or Hallucinations
AI models can be “black boxes.” AI could incorrectly interpret FERPA rights and share student records incorrectly. It could hallucinate and fabricate non-existent FERPA regulations. If an institution can’t explain how AI made decisions about the student data it shared, it may be hard to meet FERPA compliance. - “Over Automation” Could Undermine Human Oversight
FERPA compliance requires judgment, discretion, and context—something AI doesn’t handle extremely well. If we automate too much, we may miss the nuances that staff can pick up on.
4 AI Best Practice Recommendations for FERPA Compliance
To safely leverage AI for FERPA compliance, institutions should:
- Have a published policy on how the institution uses AI and how it applies to FERPA-related information. In my research I did find several schools that had “FERPA and AI” related pages on their site.
- Ensure that your AI provider has clear data-handling agreements that meet FERPA requirements.
- AI should augment and not replace human decision making, especially when interpreting FERPA regulations.
- Establish a governance process to review AI decision making processes to ensure the training model is not drifting.
I was simply logging into my parent portal to make sure everything was in order for the end of the spring semester for my kids, and most importantly, that my daughter was all set to graduate. My son still has two more years to go. This simple task for a 25+ year veteran of EdTech led me down an interesting path.
AI can be a powerful tool for institutions, and helping answer questions and manage student data is one of them. But it must be used with caution. Institutions should not view AI as a silver bullet and treat it as part of a broader compliance ecosystem. It is important to realize that it is the institution's responsibility to protect the information of the student and their privacy.