Chromebook is asking for old password

Problem:
When logging in to a Chromebook, Chrome says that my password has changed and I need to enter my old password.
"Your Google Account password has changed since the last time you signed in to this computer. Because Chrome OS securely encrypts all your local data, you must enter the old password now to unlock that data."
Explanation:
This happens when a user either stores data on the local machine, or modifies their profile settings on that machine and then changes their password. The profile settings and data are encrypted on the local machine with the user's password at the time the data is saved. If the user's password is subsequently changed, the encrypted data will still require the original password for access.
This is only an issue for data stored on the local machine. It does NOT effect the user's ability to access data stored in the cloud (Drive, Docs, Mail, etc) At SPS, students should not be storing data on the local machine. All files should be stored in the student's Google Drive account.
Solution:
If you remember your old password, enter it. If not, there is a simple workaround. Just click "Forgot Password" OR "I can't remember my password" and then click "proceed anyway" . The student will then be able to log on and access all cloud based resources, but they won't be able to access any data stored on the chromebook. Again, this is fine, because they shouldn't be storing anything on the local machine anyway.