Schools that fail to comply with FERPA regulations could:

The option regarding losing federal education funding is correct because the Family Educational Rights and Privacy Act (FERPA) establishes specific requirements regarding the privacy of student education records. Schools that do not comply with these regulations can face significant consequences, including the loss of federal funding. This law is designed to protect the rights of students and their families regarding the accessibility and confidentiality of education records. The federal government ensures compliance by making funding contingent upon adherence to FERPA regulations.

While other consequences such as potential lawsuits from parents or guardians, the possibility of criminal charges for administrators, and issues with accreditation can occur in various scenarios involving educational institutions, the direct consequence related to non-compliance with FERPA primarily focuses on federal funding as a primary enforcement mechanism. Therefore, understanding the implications of FERPA is crucial for schools to maintain their funding and operate within the legal framework established by federal law.