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Absolutely. Google's Apps for Work line includes the Vault product, which can be used for compliance, monitoring and e-discovery.

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Looking more into this: if your Google Apps for Work/Education account has unlimited storage, then your company has definitely purchased Vault as well. Easily checked in Gmail.

https://apps.google.com/products/vault/

Thanks, for me it is: Don't use Google Apps for Education for anything except for taking advantage of it by uploading your encrypted data to the nice "unlimited" Google drive space or sending PGP mails.

Don't use Google Apps for Education for anything except for taking advantage of it by uploading your encrypted data to the nice "unlimited" Google drive space

Is this really abusable in this fashion?

I have a few terabytes of encrypted backups and disk images (via command line OpenSSL) on my "unlimited" Google Drive for Education account. I do not consider this an abuse, but a perfectly valid use case for Google Drive. If they don't like it, they can feel free to stop using the word "unlimited". However, I believe they do do some sort of throttling.

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