TL;DR: PowerSchool and Chicago Public Schools agreed to pay $17.25 million to settle a class action alleging they secretly recorded students' private communications through the Naviance college planning platform. The lawsuit accused them of "unlawful wiretapping and eavesdropping"—students thought their messages to teachers and counselors were private. They weren't. Over 10 million students who used Naviance between August 2021 and January 2026 are eligible for compensation. PowerSchool denies wrongdoing.
The College Planning Platform That Watched Everything
Naviance is everywhere. Millions of high schoolers use it to plan for college, track their GPAs, message counselors, and complete career interest surveys. It's mandated by school districts. You can't opt out and still graduate.[1]
What students didn't know: PowerSchool allegedly embedded third-party analytics code that recorded their communications. According to the lawsuit filed in August 2023, the company "covertly recorded" student messages while advertising a commitment to privacy.[2]
The plaintiffs called it exactly what it was: "unlawful wiretapping and eavesdropping."[3]
What They Collected
The lawsuit alleges PowerSchool harvested:
- Names and student ID numbers
- Demographic information
- Student photographs
- Survey responses about career interests
- Private messages between students and teachers
- Academic progress and graduation year
A separate lawsuit in Seattle alleges the collection went even further: "personal records, contact information, demographic information, disciplinary and behavioral information, medical information, user communications, user-device information, higher-education information and career-related information."[4]
Federal Judge James Donato ruled that collecting this data "without parental notice or consent...plausibly describes conduct that is 'highly offensive to a reasonable person.'"[4]
The Third-Party Code Nobody Mentioned
The lawsuit names analytics firm Heap Inc. as a co-defendant. Heap's tracking code was allegedly embedded in Naviance, recording student interactions without disclosure.[2]
Students wrote messages to counselors. Filled out surveys about their dreams. Asked questions about college applications. All of it was being captured by software they never agreed to.
When you use a platform your school requires, you expect the school sees your data. You don't expect a Silicon Valley analytics company is recording your private messages.
$17.25 Million. No Admission of Guilt.
On February 26, 2026, PowerSchool and Chicago Public Schools announced the settlement. Here's what it includes:[1][3]
- $17.25 million to be split among class members (over 10 million students)
- Web governance committee to monitor advertising tech in Naviance
- Two-year moratorium on using third-party software without committee approval
- Annual privacy certifications required from CPS vendors
- Data deletion ordered for Heap and other vendors
PowerSchool's statement: "We jointly reached an agreement with the plaintiffs, resolving the claims with no admission of wrongdoing."[2]
Translation: We'll pay, but we're not saying we did anything wrong.
Do the Math: $1.72 Per Student
$17.25 million sounds like a lot. Split it among 10 million students and you get $1.72 each. Before attorney fees and administrative costs take their cut.
PowerSchool's 2024 revenue was approximately $700 million. This settlement is less than 2.5% of one year's earnings.[5]
For a company that allegedly spied on millions of children, this isn't a punishment. It's a cost of doing business.
EdTech's Surveillance Problem
PowerSchool isn't an outlier. It's the norm. EdTech companies collect staggering amounts of student data, often with minimal oversight. Schools mandate platforms. Students can't opt out. Parents don't know what's being collected.
In January 2026, the FTC settled with Illuminate Education over a breach that exposed 10 million students. The pandemic accelerated edtech adoption. Nobody accelerated privacy protections.
When your school requires you to use a platform, you're a captive audience. You can't shop around for a more privacy-respecting alternative. The school picked it for you.
What Students and Parents Can Do
File a Claim
If you used Naviance between August 2021 and January 2026, you're eligible for the settlement. Watch for claim filing information once the court gives final approval.
Assume Nothing Is Private
School platforms aren't encrypted chat apps. Messages, surveys, and activity are likely logged. Say only what you'd say to administration directly.
Ask Your School
Request a list of third-party vendors with access to student data. Ask what analytics tracking is embedded in school platforms. FERPA gives you some rights here.
Use Separate Accounts
Don't link school accounts to personal emails or social media. Keep school-mandated platforms isolated from your personal digital life.
References
- GovTech — PowerSchool, Chicago Schools Agree to Pay $17.25M Settlement (February 26, 2026)
- The Record — PowerSchool, Chicago Public Schools to settle student data privacy lawsuit for $17 million (February 2026)
- Bloomberg Law — Powerschool to Pay $17.25 Million to Settle Student-Data Suit (February 2026)
- ParentMap — Seattle Mom Sues PowerSchool Over Student Data Privacy (2024)
- PowerSchool Investor Relations