Education technology giant PowerSchool has told customers that it experienced a cybersecurity incident that allowed hackers to compromise the personal data of students and teachers in K-12 school districts across the United States.The California-based PowerSchool, which was acquired by Bain Capital for $5.6 billion in 2024, is the largest provider of cloud-based education software for K-12 education in the U.S., serving more than 75% of students in North America, according to the companys website.PowerSchool says its software is used by over 16,000 customers to support more than 50 million students in the United States.In a letter sent to affected customers on Tuesday and published in a local news report, PowerSchool said hackers successfully breached its PowerSource customer support portal on December 28, allowing further access to the companys school information system, PowerSchool SIS, which schools use to manage student records, grades, attendance, and enrollment. The letter said the companys investigation found the hackers gained access using a compromised credential.PowerSchool has not said what types of data were accessed during the incident or how many individuals are affected by the breach, and neither PowerSchool nor Bain Capital have responded to TechCrunchs questions.The nature of the cyberattack remains unknown. Bleeping Computer reports that in an FAQ sent to affected users, PowerSchool said it did not experience a ransomware attack, but that the company was extorted into paying a financial sum to prevent the hackers from leaking the stolen data. PowerSchool told the publication that names and addresses were exposed in the breach, but that the information may also include Social Security numbers, medical information, grades, and other personally identifiable information. PowerSchool did not say how much the company paid.PowerSchool was sued by class action in November 2024, which alleges the company illegally sells student data without consent for commercial gain. According to the lawsuit, the companys troves of student data totals some 345 terabytes of data collected from 440 school districts.PowerSchool collects this highly sensitive information under the guise of educational support, but in fact collects it for its own commercial gain, while hiding behind opaque terms of service such that no one can understand, the lawsuit alleges.