The U.S. Education Department is being sued for violating students privacy.

The U.S. Education Department is being sued by a nonprofit organization for promoting regulations that are alleged to undercut student privacy and parental consent. The rules allow third parties, including private companies and foundations promoting school reform, to get access to private student information.
The Electronic Privacy Information Center has been fighting for the department over 2011 regulations involving the Family Educational Rights and Privacy Act, also known as FERPA, a law that is supposed to protect the privacy of student education records at all schools that receive federal education funds. FERPA was passed to give parents specific rights in regard to their children’s education records, rights which transfer to the student he/she becomes 18 or goes to a school beyond the high school level.
But in 2011, regulations issued by the department changed FERPA to allow the release to third parties of student information for non-academic purposes. The rules also broaden the exceptions under which schools can release student records to non-governmental organizations without first obtaining written consent from parents. And they promote the public use of student IDs that enable access to private educational records, according to EPIC, a nonprofit public-interest center based in Washington D.C.
Privacy advocates oppose the rule change because student data can be shared by local officials with private companies and foundations. Some say FERPA was loosened to make it easier for third parties to get access to student data by funding initiatives such as student data bases. Stephanie Simon of Reuters wrote in this story about a new $100 million database built in large part with Gates Foundation money that:
…already holds files on millions of children identified by name, address and sometimes social security number. Learning disabilities are documented, test scores recorded, attendance noted. In some cases, the database tracks student hobbies, career goals, attitudes toward school – even homework completion.
The database has files of students from at least seven states that have agreed to participate so far and is allowing access to third parties. According to Simon, the infrastructure for the database was built by the for-profit Amplify Education, which is run by school reformer Joel Klein and owned by Rupert Murdoch’s News Corp. The database is being run by a new nonprofit, inBloom Inc., and is.
“We think it is a very serious threat to student privacy,” said Marc Rotenberg, president and executive director of the Electronic Privacy Information Center. “Once the data gets out there it has all sorts of ramifications. It weakens the [FERPA] structure Congress put in place because Congress understands that a lot of student data can be stigmatizing, keeping people out of jobs, for example.”
http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/03/13/lawsuit-charges-ed-department-with-violating-student-privacy-rights/
NY parents furious at program, inBloom, that compiles private student information for companies that contract with it to create teaching tools:
http://www.nydailynews.com/new-york/student-data-compiling-system-outrages-article-1.1287990