Contracts cannot take away constitutional rights, no matter how much power the school thinks it has over the students.
And that is really what this is all about.
It's the Parents job to deal with these things, not the Schools.
I would fire the schools board for misappropriation of school funds.
Not even close to being on target here.
Remember students are under 18 and cannot enter a legally binding contract. Additionally, you have no right to Facebook or anything on the internet. On top of that this is a private religious school.
I think what a lot of people don't understand is what social interactions bring into the classroom and schools. In the old days (1990s) it was much more difficult for students to have the level of interaction they do now. I doubt the school is activitely querying facebook for their students. A much more reasonable explanation is a few students got into it at school over something that occurred on facebook. Furthermore, the explanation from the article is deeper than facebook as it states the schools expects them to completely ignore the internet. The idea being that modest Jews would have no need for the internet and certainly not facebook. This is more of a religious situation than an educational situation.