What consequence can an educational institution face for violating FERPA?

An educational institution can face significant consequences for violating FERPA, and one of the most impactful is the potential withholding of federal funds. FERPA, or the Family Educational Rights and Privacy Act, is a federal law that governs the privacy of student education records. If an institution is found to be in violation of FERPA, it risks losing eligibility for federal funds, which are crucial for educational institutions as they support various programs, staff salaries, and resources. This consequence serves as a strong incentive for institutions to comply with FERPA regulations and protect students' rights regarding their educational records.

The other potential consequences, such as the loss of state funding, public hearings, or lawsuits from students, while they may occur in certain contexts, are not direct outcomes defined under FERPA. The federal funding aspect is a specific and significant enforcement measure linked directly to the law’s compliance requirements.