What happens to your "permanent record" after you graduate?

Schools keep your transcript on file. After you have graduated, you are legally entitled to what’s in it. Call your school and ask for copies, or drop into the business office.

Unless you misbehaved in a manner that left a record in the courts, you should not worry.

The only record she meant is the school’s own permanent record. Once you’ve graduated, it basically is obsolete. Your official transcript (grades) is the only thing that follows you.

Your permanent file may come to light if authorized parties look into your character.

The previous answers are all correct: your record is kept on file, but it won’t go outside your school unless a serious legal issue causes it to become relevant. The “permanent record” line is typically used just to scare you.