All users (both employees and students) have a default password that is randomly generated for that specific user when their account is created. However, employees (and potentially secondary students) won't actually use their default password as they will set a new password when they claim their account.
For secondary students (grade 6 and higher) the PSU may optionally have those students claim their own accounts, OR the teachers may directly distribute the student usernames (pupil numbers) and default passwords. To claim their own account, a secondary student would need their pupil number, grade, birthday in YYYYMMDD format, and the LEA code of their PSU. When they start the process, they will be asked to chose and set their password. To complete the account claiming process (or during their first login if the account is not claimed), a secondary student will need to answer at least 5 challenge response questions. (See: Student Account Claiming).
For primary student accounts (grades 5 and below) the PSU has the option to use Badges (QR Code login) or Pictographs - see NCEdCloud Badges and Logins for PK-5 Students. Otherwise, teachers will need to directly distribute the student usernames (pupil numbers) and default passwords. There is no claim account process (or challenge questions) for K-5 students.