David--
That's a great question and often misunderstood. The FERPA laws preclude sharing some information except on a 'need to know' basis and other regulations apply concerning grades, financial, etc. to parties other than the student. This discussion is not focused on sharing information that is contrary to those regulations. There is information, however, that students share with the admissions, financial aid and other staff that are generic in nature and could be useful in retention.
For instance, many institutions have a prospective new students complete a type of survey at their appointment. A common question concerns potential barriers (child care, transportation, etc.) If others were aware of potential barriers to program completion, then it could be very helpful when students begin missing class. As an example, faculty could routinely encourage students in the classroom to develop their own network of support for transportation. You wouldn't necessarily need to know specific names, but clearly understanding that the 'incoming class' may have common barriers might inspire some very creative tactics.
Susan