Privacy and FERPA Compliance in Learning Analytics Projects

Privacy and FERPA Compliance in Learning Analytics Projects Sep, 10 2025

When you collect data on how students learn-what videos they watch, how long they spend on assignments, which questions they get wrong-you’re not just building better courses. You’re handling sensitive personal information. And in U.S. schools and colleges, that means you’re legally required to follow FERPA. Ignoring it doesn’t just risk fines. It breaks trust. And once trust is gone, learning analytics stops working.

What FERPA Actually Covers

FERPA-the Family Educational Rights and Privacy Act-isn’t a vague guideline. It’s federal law. Passed in 1974, it gives students and parents control over educational records. That includes grades, attendance, disciplinary records, and now-thanks to modern tech-digital learning behavior. If a student logs into Canvas, watches a 20-minute lecture, skips three quizzes, and then re-watches the same video three times, that’s an educational record under FERPA.

It doesn’t matter if the data is anonymized. If it’s tied to a student ID, course enrollment, or even an IP address linked to a login, it’s protected. Many schools think scrubbing names is enough. It’s not. A student’s pattern of activity-like always submitting assignments at 2 a.m.-can be uniquely identifying, especially in small classes.

Why Learning Analytics Can Violate FERPA Without You Realizing It

Learning analytics tools are built to find patterns. But those patterns often come from data sources that weren’t designed with privacy in mind. Here’s how violations happen:

  • Using third-party tools like Kahoot! or Quizlet that store student data outside your institution’s systems
  • Exporting LMS data to Google Sheets or Excel and sharing it with faculty who don’t have a legitimate educational interest
  • Building dashboards that show individual student performance to teaching assistants without written consent
  • Using AI tools that predict dropout risk based on behavioral data without disclosing how the model works

A 2023 study by the National Association of Student Personnel Administrators found that 68% of institutions using learning analytics had at least one FERPA violation in the past year. Most weren’t malicious. They just didn’t know what counted as a record.

What Counts as a “Legitimate Educational Interest”

FERPA allows schools to share student data without consent-if someone needs it to do their job. But “need” is narrow. A professor grading a paper? Yes. A campus security officer checking who’s logging in late? No. A data scientist analyzing trends across 500 students? Only if they’re working under a contract that binds them to FERPA rules.

Here’s the rule: If the person can’t explain, in one sentence, how this data helps them teach, advise, or support the student, they shouldn’t see it. No exceptions. Even if they’re “just helping with research.”

Many schools get this wrong by giving access to too many people. A common mistake: letting academic advisors view real-time dashboards of student engagement. Advisors aren’t teachers. They’re counselors. Unless they’re directly supporting that student’s learning plan, they don’t get access.

Students with learning behavior halos protected by a friendly FERPA robot in colorful classroom

How to Build FERPA-Compliant Learning Analytics

You don’t need to stop using analytics. You just need to design them right. Here’s how:

  1. Map your data flow. Start with every tool you use: LMS, discussion forums, video platforms, survey tools. List where data goes. If it leaves your institution’s servers, you need a signed Data Processing Agreement (DPA) with that vendor.
  2. Use pseudonymization, not just anonymization. Replace student IDs with random tokens. Keep a secure key to re-identify only if legally required (like for academic integrity investigations). Never store tokens alongside names in the same database.
  3. Limit access by role. Use role-based permissions. Only instructors can see individual student data. Analysts see aggregated, de-identified trends. No one sees raw logs unless they’re auditors with written authorization.
  4. Get written consent for research. If you’re using student data for a study-even if it’s internal-students must opt in. No pre-checked boxes. No fine print. Clear language: “Your learning data may be used to improve course design. You can withdraw anytime.”
  5. Train your team. Every faculty member, TA, and IT staff member who touches student data needs annual FERPA training. Don’t rely on a one-time orientation. People forget. Policies change.

What Happens When You Break FERPA

The U.S. Department of Education doesn’t fine schools often-but when they do, it’s public. In 2022, a university in Ohio lost $1.2 million in federal funding after a professor emailed a spreadsheet of student quiz scores to a private tutor. The student was identified. The tutor wasn’t authorized. The school had no training program. The case made national headlines.

But the real cost isn’t the fine. It’s the loss of student trust. Students who feel watched stop engaging. They avoid risky questions. They don’t ask for help. They log in less. Analytics then show “low engagement”-but the data is skewed because students changed their behavior to avoid being tracked.

That’s the irony: trying to help students learn by monitoring them can make them learn less.

Teacher handing out privacy notice as chaotic trackers turn to confetti in hopeful scene

Tools That Help (and Tools That Don’t)

Not all learning analytics platforms are created equal. Here’s what to look for:

FERPA Compliance Features to Look For
Feature Compliant Tool Example Non-Compliant Tool Example
Data stored on U.S.-based servers Canvas Insights (Instructure) Edpuzzle (uses EU servers without DPA)
Role-based access controls Blackboard Analytics Google Classroom + custom scripts
Automated pseudonymization LearnPlatform (with FERPA add-on) Excel exports from Moodle
Student opt-in for research Watermark Learning Analytics Third-party AI tutors with hidden data collection

Avoid tools that say “We don’t store your data” but then use cookies or device fingerprints to track students. That’s not compliance. That’s evasion.

What Students Need to Know

Students aren’t the enemy. They’re the reason you’re doing this. But they need to be partners. Every course that uses learning analytics should include a one-page notice:

  • What data is collected
  • How it’s used (to improve the course, not to grade or punish)
  • Who can see it
  • How to opt out
  • How to request data deletion

Put it in the syllabus. Link to it on the LMS homepage. Don’t bury it. Students who understand the purpose are more likely to engage honestly.

Next Steps: A Simple Checklist

Here’s what to do this week:

  1. Review all third-party tools used in your courses. Do they have a signed DPA? If not, stop using them.
  2. Ask your institution’s legal or compliance office: “Do we have a FERPA policy for learning analytics?” If not, draft one.
  3. Train your teaching staff. Use a 15-minute video or handout. No more than 5 slides.
  4. Turn off public dashboards showing individual student data. Only authorized users should see names.
  5. Write a simple student notice and add it to every course syllabus.

Compliance isn’t about avoiding punishment. It’s about making sure your analytics help students-not scare them.

Does FERPA apply to online courses and MOOCs?

Yes-if the course is offered by a U.S. school that receives federal funding. That includes public universities, community colleges, and even private schools that take federal student aid. MOOCs run by universities like MIT or Arizona State fall under FERPA if students are enrolled for credit. If it’s a free, non-credit course with no institutional ties, FERPA doesn’t apply.

Can I use AI to predict which students will drop out?

Only if you follow strict rules. First, you need student consent to use their data for predictive modeling. Second, you can’t use the prediction to deny support, change grades, or flag students for disciplinary action. Predictions should only inform outreach-like sending a message: “We noticed you haven’t logged in this week. Can we help?” Third, you must document how the model works and allow students to request its removal from their record.

What if a student asks to delete their learning data?

Under FERPA, students have the right to request deletion of their educational records. But there’s a catch: if the data is part of an aggregated dataset used for research or institutional improvement, you don’t have to delete it if it’s truly anonymized and can’t be re-identified. However, if the data is tied to their identity-even indirectly-you must remove it. Keep a log of all deletion requests and confirm in writing when it’s done.

Do teaching assistants need FERPA training?

Yes. TAs who grade assignments, access LMS dashboards, or view student activity logs are considered school officials with a legitimate educational interest-but only if they’ve been trained. Many institutions skip this step because TAs are temporary. That’s a mistake. FERPA violations often happen because someone with temporary access didn’t know the rules.

Is it okay to share anonymized data with researchers outside the school?

Only if the data is truly de-identified and the researcher signs a legally binding agreement. FERPA allows sharing for research, but “anonymized” isn’t enough. You must remove all direct identifiers (name, ID, email) and ensure the dataset can’t be linked back to individuals using other data points-like course enrollment patterns, time stamps, or unique behavioral signatures. Many institutions fail this test. If you’re unsure, consult your compliance office before sharing anything.