Contact information would also be digitised
New regulations could allow parents to track their children's school progress online.
Tynwald will be asked to approve a change in the rules when it sits next week.
The proposed system would mean parents could access data on attendance and curricular attainment - potentially doing away with traditional school reports.
Contact information would also be stored in the database.
Graham Cregeen, Minister for Education and Children, says data protection is the Department's 'utmost priority'.
Tynwald sits next Tuesday, 13 June.
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