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I see this as a student deliberately breaking school policy, the same as the valedictorian broke school policy by reciting an unapproved religious prayer.
The religious kid, however, did not get fined or have his diploma withheld. Although I have no problem with the school disciplining her, $1,000 and withholding her diploma is definitely overkill against this Native American student for her feather.
I imagine the two schools operate under different administrators and school districts.