#1 has to be thought through carefully because ultimately this would involve students being able to access other students' information. It only takes one instance of stalking, harassment, etc. for it to blow up.
Theres all kinds of situations wjere students have access to other students personal info in a professional capacity. It is handled like any other situation where this is the case
To add to that, I don't see how students having access to student data is much different from other people having such access. You don't have to be a student to stalk a student: administrators and staff members can be creepy too.
