Yes, if you use SAAS software, this information will be processed by remote servers.
Yes, if you use proprietary software, you will not know exactly how is this information processed.
And finally, if you have someone who is willing to work as school clerk, given how much do these jobs pay and how interesting they are, this person will likely not understand the complexity of these issues and will be a little bit lazy with their job, so she probably will not present parents with all the relevant information.
Now, every single one of these facts seem obvious; how is combination of these facts warrant an article in one of the biggest newspapers all of a sudden?