While student privacy is frequently a topic of concern in studies about data-powered technologies in higher education, we still know little about handling student privacy in online proctoring systems (OPS). To better understand the challenges associated with student privacy in higher educational practice, we conducted an interview study examining various stakeholders’ understandings of privacy in OPS. We interviewed ten stakeholders–including teachers, students, and administration staff, such as the head of the department, the head of the IT department, and examination administrators–directly involved in the procurement and use of an online examination platform with proctoring features, in one of the largest universities in Scandinavia, to investigate stakeholders’ privacy perceptions, privacy concerns, privacy awareness, and perceived responsibility regarding the privacy practices of OPS. The findings show the participants perceive privacy in OPS as a seclusive and anonymous state of being, a way to control information, and an individual right. The results also point to stakeholders’ concerns regarding collecting sensitive information about the students, the possibility of information misuse, and improper access to students’ personal information. Furthermore, the study’s results identify trade-offs between the stakeholders’ concerns for privacy and the benefits of using OPS for examinations in higher education. This study underscores the need for higher education institutions to involve students and educators in procuring and deploying OPS and develop strategies for cultivating privacy awareness and responsible privacy practices. Finally, implications for developing responsible digital practices in higher education are discussed.