What is the proposed penalty for students that paid an essaywriting service to complete their papers for them? I had noticed a sudden change in the quality of the essays submitted two of my students. When I confronted them, they were quite frank and admitted that due to lack of time, they had assigned their papers to be written by an outside source, an essaywriting service (a booming business that must be). 

What is the proposed penalty? 

If I take this on an administrative level, they face a pause of educational activities for 6 months to 1 year. But since this is the first incident, I do want them to learn their lesson, but at the same time taking into account that they were honest with me, not being punished too hard.

What do you propose? Is there something I can do to keep this from an administrative level and at the same time punish them?
The official punishment already has a fork, being the first time and honest can help them to get a suspension closer to 6 months than to a full year. Also, you can help them get a speedy process, so the penalty starts counting as soon as possible.

It is important that there is an official record of this event, so they can't pull the "it is the first time, I promise" again. They now have a record, and they know it.

This said, I can't believe they didn't know they were doing something wrong, so I don't think one should be very forgiving.