FERPA Basics for AI

The Family Educational Rights and Privacy Act (FERPA) protects student education records. AI systems that access student data must comply.

What FERPA Protects

• Academic records
• Enrollment status
• Financial information
• Personal identifiers
• Educational activities

Key Requirements

• Written consent for disclosure
• Legitimate educational interest
• Directory information exceptions
• Right to access and amend
• Secure handling

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AI and "School Official" Exception

AI systems can access student records without consent under the school official exception if they:

1. Perform a function the school would otherwise do
2. Are under direct control of the institution
3. Use data only for specified purposes
4. Meet security requirements

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FERPA Compliance Checklist for AI

Contract Requirements

✅ AI provider functions as school official ✅ Direct control provisions ✅ Use limitations specified ✅ Re-disclosure prohibited ✅ Security commitments ✅ Data return/deletion provisions

Technical Requirements

✅ Access controls ✅ Encryption ✅ Audit logging ✅ Secure transmission ✅ Data minimization

Administrative Requirements

✅ Staff training ✅ Compliance monitoring ✅ Incident response ✅ Documentation

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ibl.ai FERPA Compliance

Data Ownership

• Institution owns all data
• No secondary use
• No data sharing
• Complete control

Self-Hosting Option

• Data never leaves campus
• Maximum privacy
• Full governance
• Compliance simplified

Security Features

• Encryption at rest and transit
• Role-based access
• Audit logging
• SOC 2 compliance path

Contract Terms

• School official provisions
• Use limitations
• Security commitments
• Data handling clarity

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Common FERPA Concerns with AI

Concern: Student Conversations with AI

Answer: Conversations may be education records. Ensure:

• Appropriate data handling
• Access controls
• Retention policies
• Disclosure protections

Concern: AI Training on Student Data

Answer: Training on student data requires careful consideration:

• ibl.ai does NOT train general models on your data
• Course materials are used for context only
• Clear data use policies

Concern: Third-Party Access

Answer: ibl.ai's self-hosting option eliminates third-party access concerns entirely.

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Best Practices

1. Review contracts carefully for FERPA terms
2. Minimize data shared with AI systems
3. Document compliance measures
4. Train staff on appropriate use
5. Consider self-hosting for maximum control

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Conclusion

FERPA compliance with AI is achievable with proper planning and the right platform. ibl.ai's approach:

• Full data ownership
• Self-hosting option
• Proper contract terms
• Security certifications

protects student privacy while enabling AI innovation.

Ready for compliant AI? Explore ibl.ai

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Last updated: December 2025