E-learning is a significant technological advancement that can help educational institutions foster a better learning environment for students as well as improved efficiency of education. For easier access in E-Learning, cloud computing is adopted which is comprised of a variety of computing resources from server and storage to other applications. However, the use of cloud computing is limited by security concerns brought by its multitenant nature, as well as the cloud service provider having remote control of its security and license issues. This research paper finds cloud encryption and key management crucial for addressing these shared technology vulnerabilities. The inherent trust issues associated with cloud-based e-learning system can be effectively resolved by choosing a reliable cloud service provider as well as adapting methods that can increase the security of the cloud such as providing Hardware Security Module service, external key generation for encryption use, and proper organization of files in the cloud.