Below is a text summarization of this excellent article: http://modelviewculture.com/pieces/grooming-students-for-a-lifetime-of-surveillance
Summary
Instead, FERPA threatens to take federal funding away from schools who
are found to have breached student privacy while it fails to mandate
bare minimum security standards for the storage and transmission of
student data. Though lawmakers and privacy advocates are regularly
outraged at the immense volume of student data freely floating through
the web, the repeated failure to create legislation that protects
student data from being used for profit is astounding. In the case of
Securly, the first filtering tool designed for schools, the controls set
by IT and administration for web access can extend far beyond the walls
of the school and determine what content students can access while
using school- issued machines from their home internet connections.