SAT Administrators Ordered To Pay $750K For Selling Students' Data

NEW YORK — New York high school students who took college entrance exams may have been tested in ways they were unaware of — officials say their privacy was violated for profit.

New York Attorney General Letitia James and New York State Education Department (NYSED) Commissioner Betty A. Rosa announced on Tuesday a $750,000 settlement with College Board, a New York-based non-profit institution, for violating high school students' privacy and unlawfully selling their personal data.

College Board develops and administers standardized exams, such as the PSAT and the SAT, mostly to high school students who take them during the college admissions process. The company also develops Advanced Placement (AP) courses, and has a contract with the NYSED to subsidize AP exam fees for low-income students. In addition, College Board's Student Search Service (Search) licenses data collected from students during standardized exams, such as names, contact information, ethnicity, GPAs, test scores, parents' income, interest in religiously affiliated collegse and activities, and anticipated majors to colleges and scholarship programs to use for recruiting students.

In 2019 alone, College Board improperly licensed the information of over 237,000 New York students who took their exams, state education officials said. The company also improperly sent promotional materials to students who signed up for College Board accounts for exams or AP courses, according to the AG.

According to Tuesday's agreement, College Board must pay $750,000 in penalties, disgorgement, and costs to New York. The company is also banned from using student data it collects or receives in connection with a contract with a New York educational agency for marketing or commercial purposes. In addition, College Board is prohibited from soliciting students to participate in Search or similar programs during school day exams.

College Board earned approximately $75 million in revenues from Search in 2021, according to details of the settlement.

"Students have more than enough to be stressed about when they take college entrance exams, and shouldn’t have to worry about their personal information being bought and sold," James said. "New York law requires organizations like College Board to protect the data they collect from students when they take their exams in school, not sell it to customers for a profit. I want to thank Commissioner Rosa for her work on this investigation to ensure we hold College Board accountable and protect New York students’ privacy."

In 2010, College Board entered a contract with New York schools and school districts to allow schools to offer the PSAT and SAT during the school day and to pay for the students’ exam fees. Over the past five years, around 20 New York schools or school districts have entered into such contracts. Schools across the state also consistently signed agreements with College Board to offer AP courses and exams.

"When the organizations we trust to provide meaningful services to our students exploit student information for profit, it violates privacy laws as well as the public trust," Rosa said. "We will continue to ensure that every student’s information is appropriately utilized and protected. We are grateful to the Attorney General for her collaboration in protecting the interests of the students and families of New York."

The Office of the Attorney General's investigation found that before June 2022, College Board solicited students to provide personal information during standardized exams, as well as when students signed up for a College Board online account. While providing this data was optional, the students were solicited to participate in the urgent context of an important test and were encouraged to sign up because it would connect them with potential scholarship and college opportunities, according to the AG.

From 2018 to 2022, College Board licensed New York student data to over 1,000 institutions through Search and received significant revenue from data related to New York students who took standardized exams during the school day, James said. According to the settlement, College Board's revenues for use of Search data of New York students who took in-school PSAT and SAT exams were:

• 2018: $5,092,456
• 2019: $5,428,401
• 2020: $6,045,313
• 2021: $5,535,338
• 2022: $5,918,689

The AG's investigation also found that until fall 2022, College Board improperly used student data obtained during standardized exams administered during the school day to send marketing communications. Until last year, when New York students registered for the AP program, they were solicited to opt in to receiving the company's marketing materials.

For its part, College Board said that the data was used to the benefit of students.

"For more than 50 years, Search connected millions of New York students with nonprofit colleges and scholarships," College Board said in a statement. "In 2022, prior to this investigation, College Board discontinued Search opt-ins for in-school testing in New York State at the request of the New York State Education Department. Search remains available to New York State students, except for in-school test takers. Students can opt-in during a weekend testing administration or through an account with College Board."

The College Board insisted students were well-served by this system.

"Search has a proven, positive effect on college-going. Students who connect with colleges via Search receive 29 percent more offers of admission," the company said. "These gains are even more pronounced for underrepresented minority students who receive 65 percent more admission offers and first-generation college students who receive 55 percent more admission offers."

The non-profit said its actions in no way violated the spirit of rules put in pace to protect students.

"College Board disagrees with the state’s interpretation of New York State’s Education Law 2-D, a unique 2014 state law targeting emerging technology companies with no evident application to standardized testing," the organization added. "Nevertheless, officials with the New York State Education Department and attorney general’s office have taken a different legal position on the interpretation of the law, and we fully cooperated with their inquiry. It’s important to note there is no finding that Search harmed students or that colleges or scholarship organizations ever misused student information."

College Board said it was pleased to have resolved the investigation and "remains committed to educational opportunity and success for the students of New York State."

According to New York law, it is illegal to use student data obtained under a contract with a New York educational agency for commercial or marketing purposes. According to the details of the settlement, College Board "neither admits nor denies the NYAG’s and the NYSED’s findings."