What are the potential consequences for a school found in violation of FERPA?

When a school is found in violation of FERPA, one of the most significant potential consequences is that they may lose federal funding. This is a serious repercussion because many educational institutions rely heavily on federal funds to support various programs, services, and operations. The law emphasizes the importance of protecting student privacy, and violations of this nature can lead to a loss of trust and credibility in the institution, prompting federal authorities to take action.

In contrast to the other options, which do not align with FERPA's enforcement mechanisms, the loss of federal funding serves as a strong deterrent meant to ensure compliance with the regulations set forth in the law. Thus, the outcome of losing funding underscores the importance that FERPA places on the protection of student records and the serious implications for non-compliance.