The changes go into effect next month and give states flexibility to share school data with the new definitions of "authorized representative" and "educational program" that can be helpful in judging the effectiveness of government investments in education while establishing procedures for state and local education authorities.

"Data is a powerful tool needed to improve the state of education in this country," said U.S. Secretary of Education Arne Duncan. "At the same time, the benefits of using student data must always be balanced with the need to protect students' privacy rights and ensure their information is protected."

The NPRM was published in April to ensure the proper implementation of FERPA while also allowing for the "effective use of student data and to address other issues identified through the Department's experiences" in administering the regulations. The issue is an important one for student transporters especially with respect to on-board school bus technology such as video of students and how it is viewed by school employees and shared with parents.