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Challenges & Solutions for GLBA Compliance in Higher Education

Cybersecurity risks are escalating; higher education institutions are increasingly targeted due to the vast amounts of sensitive data they handle.

Notably, the education sector experienced a 70% surge in ransomware attacks in 2023, marking it as the worst year on record for such incidents. Compounding this, the average cost of a single cybersecurity breach in higher education has reached $3.65 million. A further concerning issue is the compromise of the financial information of the students, faculty, vendors that gets to the heart of the inclusion for higher education to meet GLBA Safeguards Rule requirements.

These alarming statistics underscore the critical importance of compliance with the Gramm-Leach-Bliley Act (GLBA) Safeguards Rule for colleges and universities. The GLBA mandates stringent measures to protect nonpublic personal and financial information, yet many institutions grapple with its complex requirements among the other requirements of them.

So, in this article we’ll dive into the unique challenges and higher institutions face in achieving GLBA compliance and explore effective solutions.

Common GLBA Compliance Challenges in Higher Education

When institutions tackle this challenge and try to ensure compliance with GLBA, they often have to face numerous challenges. So, to help you make your institution more secure and compliant with the laws, we’ll be discussing those common challenges.

1. Understanding and Implementation

One of the most common issues that most institutions face is the failure to understand the GLBA requirements and how to actually implement them into their cybersecurity compliance program.

The GLBA itself mandates that financial institutions, including higher education entities involved in financial activities, must implement measures to protect student information.

However, the Act’s language can be a little vague which makes it difficult for some institutes to determine specific compliance obligations. This ambiguity often leads to inconsistent implementation of necessary safeguards.

For instance, the requirement to “develop, implement, and maintain a comprehensive information security program” can be daunting if a written information security plan hasn’t been developed or implemented at a college or university, and doesn’t specify exact steps or technologies to use.  

Institutions may struggle to identify where the data resides, is stored or transmitted that falls under GLBA’s purview, leading to potential oversights. To address this, it’s crucial for institutions to seek legal counsel or consult with compliance experts to tailor the Act’s provisions to their specific operations.

2. Managing Decentralized Data Environments

Universities typically operate with decentralized structures, where various departments independently manage their data systems – though many are making great strides in centralizing cybersecurity responsibilities. This fragmentation complicates the establishment of a unified information security program, as required by the GLBA, and increases the risk of data breaches due to inconsistent security practices across departments.

For example, the admissions office, financial aid department, and registrar might each have separate databases with varying security protocols, shall we think about campus radio stations or those involved in promotional aspects of the university or college. Without centralized oversight, ensuring uniform compliance becomes challenging.

The best way to mitigate these risks is by implementing a centralized data governance framework by standardizing policies and procedures across all departments.

3. Conducting Risk Assessments

The GLBA requires institutions to perform thorough risk assessments to identify and mitigate vulnerabilities in their information systems. Given the vast and complex IT infrastructures in higher education, conducting these assessments can be daunting.

Institutions often struggle to allocate the necessary resources and expertise to effectively evaluate and address all potential risks.

For instance, identifying all points where sensitive data is stored, processed, or transmitted requires a deep understanding of the institution’s IT landscape. Regularly updating these assessments is also mandated, adding to the challenge.

So, it’s best to utilize specialized risk assessment tools and frameworks that can streamline this process and ensure comprehensive evaluations.

Watch this webinar on how to meet GLBA requirements.

4. Implementing Effective Employee Training Programs

Human error remains a significant factor in data breaches with close to 95% being the employee’s fault (or potentially a student’s fault, in this context). That’s why GLBA emphasizes the importance of employee training in safeguarding sensitive information.

However, developing and maintaining training programs that keep pace with evolving cybersecurity threats is a persistent challenge for many institutions. Employees may inadvertently fall victim to phishing scams or use weak passwords, compromising data security.

But the road doesn’t end there as you can keep trying with regular, mandatory training sessions. Over time, they will simulate real-world scenarios and enhance awareness and preparedness among your staff eventually.

 

5. Ensuring Third-Party Vendor Compliance

Colleges and universities frequently engage third-party vendors for various services, including data processing and storage. The GLBA holds institutions accountable for ensuring that these vendors comply with its safeguards.

Monitoring and managing vendor compliance adds another layer of complexity to an institution’s overall compliance efforts. Including the distinction of monitoring the vendor and/or just the specific services that the vendor is providing to your institution (e.g. monitoring Jenzabar as a distinct company vs. Monitoring just the cloud services that Jenzabar is providing to a particular university).

For example, if a SaaS cloud service provider lacks robust security measures, the institution’s data is at risk despite what they might attest to in a questionnaire, your HECVAT assessment or found in a SOC 2 report. Establishing stringent vendor management policies and conducting regular audits can help ensure third-party compliance.

 

6. Aligning with Evolving Regulatory Changes

Regulatory requirements are not static; they evolve in response to emerging cybersecurity threats and technological advancements.

For instance, the Federal Trade Commission (FTC) updated the GLBA Safeguards Rule in December 2021, with compliance required by June 9, 2023.

Staying abreast of such changes and adjusting institutional policies accordingly is a continuous challenge. Failure to comply with updated regulations can result in penalties and reputational damage.

It’s best to subscribe to regulatory update services and participate in industry forums as they can aid in staying informed about particular changes.

 

7. Addressing Resource Constraints

Implementing and maintaining the comprehensive information security programs mandated by the GLBA requires significant financial and human resources.

Many institutions face budgetary constraints that make it difficult to invest in necessary technologies, hire qualified personnel, retain their personnel in a competitive hiring jobs environment, keep your personnel interested in the work they do, and provide ongoing training.

A brilliant example of this is the deployment of privileged access management systems or encrypting all sensitive data can be cost-prohibitive. Prioritizing investments based on risk assessments and seeking grants or partnerships can help alleviate your financial burdens. Though we are all aware that threat actors don’t care about your resource constraints, in fact they are counting on them.

 

8. Preparing for Compliance Audits

Since 2019, GLBA compliance has been incorporated into annual federal Department of Education compliance audits for higher education institutions.

Preparing for these audits involves extensive documentation and demonstration of compliance efforts, which can be particularly burdensome for institutions with limited administrative capacity. The audit fatigue is very real.

Auditors may request evidence of risk assessments, training programs, and incident response plans. Maintaining organized records and utilizing compliance management software can streamline the audit preparation process. ​

 

9. Balancing Academic Freedom with Security Policies

Academic institutions value openness and the free exchange of information. Implementing strict security measures to comply with the GLBA can sometimes be perceived as restrictive, leading to resistance from faculty and staff.

For instance, requiring multi-factor authentication or restricting access to certain data may be seen as hindrances to academic collaboration. Engaging stakeholders in policy development and clearly communicating the importance of data security can help balance these concerns.

 

10. Managing Legacy Systems and Technological Integration

Many universities operate on legacy systems that may not support modern security protocols required by the GLBA. Upgrading these systems or integrating new technologies can be costly and disruptive as can implementing mitigating controls (though generally not as much as replacing the outdated technologies).

So, the best way is to conduct a thorough assessment of existing systems to identify vulnerabilities. After that developing a phased plan for system upgrades or replacements to spread costs over time and minimize disruptions.

Data Protection Laws & Overlapping Compliance Requirements

In the complex regulatory environment of higher education, institutions must navigate multiple data protection laws that often intersect and overlap.

Key among these is the GLBA, the Family Educational Rights and Privacy Act (FERPA), the Health Insurance Portability and Accountability Act (HIPAA), and various state-level regulations.

Let’s understand how and where they overlap.

GLBA and FERPA

  • The Federal Trade Commission (FTC) has indicated that compliance with FERPA’s privacy requirements equates to compliance with GLBA’s privacy provisions for higher education institutions. ​
  • However, GLBA’s security requirements identified in the Safeguards Rule are separate and must be addressed independently, necessitating additional safeguards beyond FERPA’s mandates.

FERPA and HIPAA

  • Generally, student health records maintained by educational institutions are protected under FERPA, not HIPAA.​
  • HIPAA applies when institutions provide healthcare services not directly related to their educational functions, such as through affiliated medical centers.

Solutions for Strengthening GLBA Compliance

If your institution is having a tough time being compliant with all the requirements, here’s what you need to do:

1. Appoint a Qualified Program Coordinator

First, designate a dedicated individual or team to oversee the information security program. This “Program Coordinator” will be responsible for developing, implementing, and maintaining the institution’s GLBA compliance efforts.

Some key responsibilities include:

  • Policy Development: Craft and update information security policies to align with GLBA Safeguards Rule requirements.
  • Risk Management: Identify and assess risks to customer information and implement appropriate safeguards.​
  • Training Oversight: Ensure that staff receives regular training on data protection protocols.
  • Incident Response: Coordinate responses to security breaches and ensure proper reporting mechanisms are in place.

2. Create an Institutional Information Security Program

After that, develop a comprehensive Information Security Program (ISP). This program will come in handy to safeguard nonpublic personal information (NPI) and demonstrate compliance during audits.

Some crucial components for building an effective ISP, include:

  • Data Inventory: Catalog all NPI collected, processed, and stored by the institution.​
  • Access Controls: Implement measures to ensure only authorized personnel have access to sensitive data.​
  • Encryption: Utilize encryption protocols for data at rest and in transit to protect against unauthorized access.​
  • Monitoring: Establish continuous monitoring systems to detect and respond to potential security incidents.

3. Conduct Risk Assessments and Gap Analysis

Conduct regular risk assessments as they are vital for identifying vulnerabilities within the institution’s information systems and processes. Key activities in this regard include:

  • Identification: Recognize potential threats to the confidentiality, integrity, and availability of NPI.​
  • Evaluation: Assess the likelihood and potential impact of identified risks.​
  • Gap Analysis: Compare current security measures against GLBA requirements to pinpoint areas needing improvement.

Make sure you have an action plan beforehand to identify gaps and vulnerabilities in the system and implement them fully.

Also Read: Cyber Security Risk Assessment Checklist

4. Implement Regular Training and Technical Safeguards

Human error is a significant contributor to a data breach, thus it’s important to have ongoing training programs to educate the staff on data protection best practices. These training programs should focus more on:

  • Data Handling: Proper procedures for collecting, processing, and storing NPI.​
  • Phishing Awareness: Recognizing and responding to phishing attempts and other social engineering attacks.​
  • Incident Reporting: Protocols for reporting suspected security incidents promptly.

 

Some technical safeguards that you can use to mitigate cybersecurity risks altogether include:

  • Multi-Factor Authentication (MFA): Enhance access security by requiring multiple forms of verification.​
  • Regular Software Updates (Patching): Ensure all systems and applications are up-to-date to protect against known vulnerabilities.​
  • Data Loss Prevention (DLP): Implement DLP solutions to monitor and control data transfers.

Future Outlook: GLBA and Evolving Cybersecurity Standards

Here’s what the future holds for GLBA and its compliance within higher education institutions:

 

1. Emerging Technologies and AI-Driven Cybersecurity Threats

In the academic realm, AI’s dual-use nature means it can be both a tool for enhancing security and a vector for sophisticated attacks. Cybercriminals are increasingly leveraging AI to develop advanced phishing programs, automate attacks, and exploit vulnerabilities at unprecedented speeds. ​

Furthermore, the misuse of AI in academic settings has raised concerns. Instances of AI-generated content being used unethically, such as in academic dishonesty or the creation of deceptive materials, have also been reported.

 

2. Regulatory Evolution and GLBA Compliance

In response to the escalating cyber threats, regulatory bodies have updated frameworks like the GLBA to enforce stricter cybersecurity measures.

As of June 9, 2023, amendments to the GLBA’s Safeguards Rule require institutions to implement information security programs, conduct regular risk assessments, provide oversight of service providers (third parties), and ensure the secure disposal of customer information. ​

Non-compliance carries severe penalties, including fines up to $100,000 per violation for institutions and personal liabilities for officers and directors.

Take Compliance Serious and Stay Ahead of Cybersecurity Risks

As cyber threats grow more sophisticated and data protection laws become stricter, higher education institutions must take proactive steps now.

If your institution is navigating complex GLBA requirements, looking to reduce cybersecurity risks, or preparing for compliance audits, FortifyData offers a powerful solution.

Our Cyber Risk Management platform is designed to help higher education institutions uncover vulnerabilities, stay audit-ready, and build a strong defense against evolving threats.

 

Request a free demo today!

FAQ

Yes, if a school offers payment plans or credit-based services (even indirectly), it may be considered a financial institution under GLBA. This means related systems that collect or manage payment information need to be secured under GLBA Safeguards Rule requirements.

No. Encryption alone doesn’t guarantee compliance. Institutions must ensure the cloud provider follows GLBA-aligned access controls, logging, breach notification policies, and is covered in a written vendor agreement.

The FTC recommends risk assessments be reviewed and updated at least annually, or when there’s a significant system change. Many institutions perform them biannually for added protection and audit readiness.