What is the federal law regarding student records?

The "Family Educational Rights and Privacy Act" (referred to as FERPA and
sometimes called the Buckley Amendment) was passed by Congress in 1974.
FERPA and its regulations establish:

• A student's right to inspect and review educational records that an
  educational institution is keeping on the student;
• A student's right to challenge the content of his or her records;
• A student's right to limit disclosure of his/her records;
• The institution's obligation to notify students of their rights under FERPA and its regulations;
• Recourse for students and the federal government when an educational
  institution violates the Act or regulations.