The federal government, states, and school districts have spent billions on creating/purchasing software to monitor education. This has led to over a hundred different systems that do not interact well with each other. States then spend millions to integrate district systems with state systems and millions to integrate state systems to federal reporting. Then, when a student crosses state, and sometimes district, lines all of the data previously collected on that student disappears and the new school has to start with them anew - without a full history of that students attendance, class history, teacher notes, ect.
If the Department of Education were to design a database software that could be then passed down to states and districts for their use and would tie everything together it would save millions. Even if the federal government wasn't given direct access to the individual records it would seriously enhance federal reporting as the specifics of the data queries could be given to the states rather than asking the states to design their own queries which costs time, money and leads to erroneous and/or inconsistent data across states.
A well designed system would track information on students, teachers, staff, facilities, costs, accounting, and so on. It would also allow policymakers to quickly find schools/districts that have implemented policies that worked to use as examples for others to follow.