Understanding Student Parent Outcomes Act of 2023 This bill requires certain data collection and reporting related to the parental status of students attending institutions of higher education (IHEs). First, the bill requires the National Center for Education Statistics (NCES) to develop certain data elements related to the parental status of students attending IHEs for the surveys conducted as a part of the Integrated Postsecondary Education Data System (IPEDS). NCES must annually collect information regarding these data elements for all IHEs participating in federal student aid programs. Second, the Department of Education (ED) must provide technical assistance to states and IHEs for developing and carrying out data collection mechanisms for data on the parental status of students. Among other elements, this technical assistance must include recommendations to IHEs on best practices for communicating with students about data use and privacy, including how data will be used to help students who are parents or caregivers of dependent children. Third, ED must study and report on best practices for improving outcomes for students who are parents or caregivers of dependent children.