What is the penalty for violating FERPA?

The penalty for violating FERPA primarily involves the loss of federal funding for the institution. This law is designed to protect the privacy of student education records, and compliance is essential for institutions that receive federal funds. If a school is found to be in violation of FERPA, not only could it lose its eligibility to receive federal financial aid, but it could also face withholding of additional education funds. This consequence underscores the importance of adhering to the privacy rights of students and the obligations of institutions.

The other options do not align with the typical consequences of FERPA violations. Imprisonment for officials or automatic closure of the institution are not standard penalties associated with FERPA infractions. While students affected by violations might experience harm, the law itself does not impose fines on them; instead, the focus is on institutional accountability and maintaining compliance with federal regulations.