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Schools can use AI tools responsibly, but a teacher should not put student information into a service until the district has approved it through a documented privacy and security review. The review should establish the educational purpose, identify every type of information the service receives or creates, confirm the legal basis for sharing, assign security and breach responsibilities, set retention and deletion rules, and explain the arrangement to families.
The U.S. Department of Education’s online-educational-services guidance, issued in February 2014, is a useful federal baseline rather than an AI-specific assessment of modern products. FERPA does not prescribe a particular encryption method, certification, or cybersecurity framework. Districts must therefore examine concrete vendor commitments while also considering applicable state, local, tribal, and other federal requirements.
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Why an AI tool needs a school-level review
An AI application may receive far more than the text a student types into a prompt. A classroom account can be associated with a name, email address, student identifier, uploaded work, teacher comments, device information, usage history, cookies, tracking pixels, and generated outputs. Some services also send information to analytics providers or other subprocessors. The district needs to know what happens to that information before classroom use, not after an incident.
The Department’s Student Privacy Policy Office gives teachers a direct starting point: “A teacher should first check with their school/district administration to see if that application or service is approved for use in the classroom.” A teacher who accepts click-wrap terms can create a contractual relationship on behalf of the classroom, even when the service is free. Free products should go through the same, or a similar, review used for paid services.
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FERPA’s general rule limits disclosure of personally identifiable information from education records without written consent, subject to exceptions. Calling a product “FERPA compliant” does not complete the review. The Department explains that FERPA does not require specific security controls; schools still need appropriate safeguards and clear agreements about how information is handled.
Use a repeatable approval workflow
1. Define the purpose, authority, and approval path
Write down the instructional task before evaluating a product. “Use AI” is too broad; “provide reading-level feedback on a draft without retaining the draft” is a testable purpose. Identify the staff member sponsoring the request, the district office authorized to approve services, and the procurement route.
- Check the district’s approved-services list and acceptable-use rules.
- Ask information-technology, privacy, procurement, and legal staff which review is required for this type of service.
- Determine whether the district, school, or individual teacher would accept the online terms. Do not let a free trial or classroom click bypass procurement.
- Record the decision, the approved users, the permitted data, and any conditions such as disabling a feature or using pseudonymous accounts.
- Inventory the service after approval and set a date for re-review when its terms, model, ownership, or data practices change.
Approval is a governance decision, not a teacher’s informal assurance that a tool seems safe. If the district has no process, pause deployment and ask administrators to establish one before student data is entered.
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Ask the vendor and the internal sponsor to provide a field-level description of data flows. The 2014 Department guidance mentions forms, logs, cookies, and tracking pixels; an AI review should apply that principle to prompts, files, outputs, and account records.
| Data category | Questions to answer |
|---|---|
| Student inputs | Can students submit names, identifiers, free-text prompts, images, audio, video, code, or assignments? Which fields are necessary? |
| Account and roster data | What profile fields, class membership, age information, or single-sign-on attributes are transferred? |
| Service-collected data | Are IP addresses, device details, cookies, tracking pixels, logs, or behavioral analytics collected? Which companies receive them? |
| Generated material | Are model outputs, grading suggestions, feedback, or teacher edits stored, associated with a student, or used in later processing? |
| Operational records | How are prompts, timestamps, moderation events, support tickets, and usage records retained and accessed? |
Apply data minimization: use the least information that can accomplish the educational purpose. If a writing assistant does not need a student’s name, remove it. Test whether a de-identified or teacher-mediated workflow can work, but require the vendor to explain what “de-identified” means, what re-identification risks remain, and whether the service can combine the data with other records.
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3. Establish the legal basis, purposes, and sharing limits
For each data element, identify the permitted purpose and the legal authority for sharing. Under FERPA’s school-official exception, the Department’s FAQ identifies conditions including that the service performs an institutional function, remains under the school’s direct control regarding use and maintenance of education records, is used consistently with the school’s annual notification, and does not use or redisclose information for unauthorized purposes.
Put those conditions into the agreement and verify that actual product behavior matches them. List every recipient category, including hosting companies, analytics providers, support personnel, and model or infrastructure subprocessors. Ask whether information can be sold, used for advertising, combined with unrelated datasets, or disclosed to another customer.
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AI-specific questions deserve explicit answers even though the 2014 guidance predates generative AI:
- Is a prompt, uploaded file, or output used to train, fine-tune, evaluate, or improve a model?
- Can training or improvement use be disabled technically and contractually for all school accounts?
- Does opting out apply to backups, human review, abuse monitoring, and derived data?
- Can the vendor use student interactions to create profiles or infer sensitive characteristics?
- Which subprocessors can access content, in what countries, and for what purpose?
These are due-diligence questions, not claims that FERPA itself addresses model training. If the vendor cannot give a specific answer, treat the uncertainty as a review finding rather than assuming the most favorable interpretation.
4. Read the contract, privacy notice, and product controls together
Marketing language is not a substitute for enforceable terms. Compare the agreement, data-processing addendum, privacy notice, acceptable-use policy, and administrator settings. Ask counsel to resolve conflicts between documents and to identify terms the vendor can change unilaterally.
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| Contract area | What the district should require or clarify |
|---|---|
| Purpose and permitted use | A precise educational purpose; a prohibition on unrelated advertising, profiling, sale, and unauthorized model use. |
| Recipients | Named or clearly defined subprocessors, their functions, location, access limits, and notice before a material change. |
| Retention and deletion | Time limits for live data, logs, prompts, outputs, backups, and derived data; deletion evidence and a process for exceptions. |
| Access | How schools, parents, and eligible students request access or correction, and how identity is verified. |
| Security | Minimum safeguards, access restrictions, authentication, encryption where relevant, employee confidentiality, and security evidence. |
| Incidents | Who monitors, investigates, notifies the district, supports required notices, preserves evidence, and pays or performs response work. |
| Audit and assurance | Reasonable audit rights or independent evidence appropriate to the risk, plus a way to address material findings. |
| Duration and exit | Effective term, amendment notice, suspension rights, termination triggers, data export, return, deletion, and treatment of backups. |
The Department recommends addressing data use, retention, disclosure, destruction, access, duration, modification, and termination in contracts. A clause saying the vendor may change the service or policy at any time should trigger legal review and a re-approval requirement.
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Ask the vendor to explain its minimum controls in understandable terms. Review role-based access, administrator privileges, authentication options, encryption in transit and at rest where relevant, logging, vulnerability management, personnel access, and independent security evidence. Do not turn a familiar certification into an automatic approval; determine what it covers, when it was assessed, and whether it applies to the service and region the district will use.
Document the shared-responsibility boundary. The district may control account provisioning, staff permissions, device security, and configuration, while the vendor controls hosting, application code, and its employees. The agreement should say who detects an incident, how quickly the district is notified, what information the notice contains, how containment and investigation work, and how the parties cooperate with families and regulators. FERPA does not supply a fixed catalog of controls or a universal notification deadline, so the contract and applicable law must do that work.
6. Set retention, access, and exit requirements before launch
Define how long the service may keep prompts, files, outputs, logs, and support records. Specify whether the school can export records in a usable format and whether parents or eligible students can exercise applicable access rights through the district. Require deletion when the purpose ends or the contract terminates, with a clear timetable for production systems, backups, caches, and derived datasets.
Plan for a failed relationship: a vendor breach, a price change, a product shutdown, or a district decision to leave. The exit plan should identify the export format, responsible staff, deletion confirmation, account closure, and a replacement workflow. If the service cannot separate one school’s data from a shared model or backup, that limitation must be considered before approval.
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7. Check other legal requirements and communicate clearly
FERPA is only one part of the analysis. The 2014 Department guidance specifically flags the Children’s Online Privacy Protection Act when an online service involves children under 13. Because laws and regulatory guidance can change, confirm current requirements with counsel and current Federal Trade Commission guidance rather than relying on a dated summary. State student-privacy statutes, state records rules, local policies, tribal requirements, accessibility obligations, and other federal laws may impose additional duties.
Tell families and students what information is collected, why it is needed, who receives it, how long it is retained, and how to ask questions or exercise available rights. Use plain language in a privacy notice and classroom directions. The Department’s guidance also encourages considering parent feedback on technology plans. Feedback cannot replace legal review, but it can reveal concerns about age suitability, surveillance, bias, or instructional necessity before adoption.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Compare tools with the same decision axes
When more than one product could meet the instructional need, score each against identical questions. This is a local due-diligence framework, not a statutory rating system.
| Axis | Evidence to compare |
|---|---|
| Data minimization | Required fields, optional fields, prompt and file types, telemetry, and whether pseudonymous use works. |
| Purpose and model use | Educational purpose, training or improvement use, opt-out controls, and enforceable restrictions. |
| Recipients | Subprocessors, support access, locations, advertising partners, and redisclosure limits. |
| Retention and portability | Live and backup retention, deletion evidence, export format, and derived-data treatment. |
| School control and FERPA basis | Institutional function, direct control, annual-notice consistency, and no unauthorized use or redisclosure. |
| Security evidence | Access control, authentication, encryption where relevant, logging, testing, and independent assurance. |
| Incident response | Notification process, investigation support, containment roles, and cooperation obligations. |
| Contract flexibility | Amendment notice, audit rights, suspension, termination, and exit assistance. |
| Age and jurisdiction | Children’s privacy, state, tribal, local, and cross-border considerations. |
| Transparency and instruction | Clear notices, staff training, family communication, accessibility, and a demonstrable educational benefit. |
Keep the evidence with the decision: vendor answers, contract versions, configuration screenshots, approval signatures, and the date for reassessment. A high score in one category cannot cure an unresolved prohibition on student-content training or an inability to delete data.
Decision outcomes and safeguards
Approve
Approve when the educational purpose is documented, the district has authority, data flows and recipients are understood, the legal basis is defensible, terms allocate responsibilities, and settings enforce the approved use. Record who may use the tool and what information is prohibited.
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Approve with conditions
Conditions might require teacher-mediated accounts, removal of names, disabling model improvement, restricting uploads, limiting retention, or completing staff training. Make conditions measurable and assign an owner to verify them. If a feature cannot be technically or contractually disabled, do not describe it as disabled.
Do not approve
Decline when the vendor will not identify recipients, refuses meaningful deletion, reserves broad unrelated uses, cannot explain incident responsibilities, requires students to provide unnecessary sensitive information, or changes material terms without a workable review process. Offer a non-data-bearing alternative or redesign the assignment.
Common mistakes and how to correct them
- Relying on a “FERPA compliant” badge: Request actual purposes, controls, responsibilities, and contract language; FERPA does not certify a specific security configuration.
- Treating a free classroom account as harmless: Route it through approval and procurement because click-wrap terms can create contractual obligations.
- Reviewing only the privacy policy: Read the contract, product settings, subprocessor list, retention schedule, and incident terms together.
- Assuming de-identified means risk-free: Ask how identifiers are removed, whether data can be recombined, and whether outputs or inferences remain linked to a student.
- Ignoring generated and behavioral data: Include outputs, prompts, logs, cookies, tracking pixels, moderation events, and analytics in the data map.
- Skipping re-review: Reassess after a material policy, model, subprocessor, ownership, or product change.
- Promising a legal answer from federal guidance alone: Confirm current state, local, tribal, COPPA, and other applicable requirements with qualified counsel.
What a complete review record contains
A practical file should contain the instructional purpose; approval authority; data inventory; data-flow diagram; legal and policy analysis; vendor questionnaire; contract and privacy documents; security evidence; configuration decisions; retention and deletion schedule; incident contacts; family notice; staff instructions; comparison scores if alternatives were considered; and the next review date. This record lets a new administrator understand why the service was approved and lets the district stop using it quickly if conditions change.
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