What happens if a school violates FERPA regulations?

When a school violates FERPA regulations, one of the potential consequences they face is the possibility of receiving funding cuts. This is because FERPA is tied to federal funding; schools that do not comply with FERPA's stipulations regarding the protection and privacy of student education records risk losing federal funds from programs like Title I or other financial assistance that is contingent on adherence to federal laws. This creates a strong incentive for educational institutions to comply with FERPA, as the implications can be significant and could affect their operational budget and resources available for students.

In this context, the option regarding no penalties is inaccurate, as schools indeed face consequences for violations. The idea that schools can be audited regularly is a misunderstanding of the enforcement mechanisms related to FERPA. Lastly, while notifying parents of a violation may be a practice some institutions choose to adopt, it's not a formal requirement under FERPA. The essence of the law aims primarily at protecting student privacy rather than mandating notification of violations.