What must an educational institution do to disclose directory information?

The correct answer emphasizes that educational institutions are required to inform students about what constitutes directory information as specified under FERPA. Directory information typically includes details such as a student's name, email address, phone number, and enrollment status—information that is generally not harmful if released. By informing students about what is considered directory information, institutions allow them to make informed decisions about the privacy of their personal information.

Additionally, students must be given the option to 'opt-out' of having their directory information disclosed. This means that if a student does not wish for their information to be shared, they can formally request that the institution refrain from disclosing it. This practice not only upholds the students' rights but also ensures compliance with FERPA regulations, which require that students have the ability to restrict access to their personal information.

The other options do not align with FERPA requirements regarding directory information. Institutions are not required to obtain written consent for every disclosure of directory information, cannot limit access only to parents, and are not allowed to disclose information without any restrictions, as this would violate the privacy rights of students.