What potential consequence do educational institutions face for failing to comply with FERPA?

Educational institutions that fail to comply with the Family Educational Rights and Privacy Act (FERPA) face serious consequences, one of which is the potential loss of federal funding. This is a significant penalty because many educational institutions rely heavily on federal financial aid and grants to operate effectively. FERPA is a federal law that protects the privacy of student education records, and adherence to its guidelines is essential for maintaining eligibility for these funds. Violations can lead to a range of repercussions, including audits, sanctions, and ultimately, the loss of financial support that can critically affect the institution's ability to serve its students and maintain its programs. The other options listed, although they may represent forms of accountability in various contexts, do not directly pertain to the legal and financial implications tied to FERPA compliance.