deleting all settings & new content in windows when you log

Hi,
I am in college and notice that when I log out from my student account, all data and settings saved on the pc are deleted

when I log back in at another time.
I can see this is a great idea for a network technician so that pcs hard drives are not filled up with junk files.
I am curious as to how this feature is done - do you need special software to do this?

Thank you.

 

Their is a GPO that will remove the locally cached account. Not sure if this explains what you are wanting.