Many of the daily administrative functions include Inactive student records. We have tried setting those students to Delete via our integration, but the potential history of those students in partial course work is also deleted. So we have set them back to Inactive, and then they show up in rosters for faculty to have to skip over. They generally clutter the results and make some admin tasks cumbersome when they don't need to.
The key forms could include a simple checkbox that would allow you to show or hide the Inactive student records. A simple checkbox that toggles the filter for the statuses, and then all users could set a default, and only change that checkbox when needed.