Holding transcripts hostage may get a lot harder, thanks to new federal rules
New rules are designed to stop colleges from withholding transcripts over unpaid loan bills
INSIDE HIGHER ED
U.S. Bans Most Withholding of Transcripts
A federal policy change could give millions of students access to transcripts and academic credits their colleges have withheld because they owed the institutions money. The new rule, part of a broad package of regulations the U.S. Education Department unveiled in 2023, could amount to a national ban on the practice of transcript withholding, experts say.
Institutions sometimes withhold transcripts to force students to pay balances on their accounts. Without their transcripts, students often can’t continue their education elsewhere without starting over, and they cannot apply for certain jobs. The practice has come under increasing scrutiny in recent years, with dozens of states enacting their own bans.
The Hechinger Report
Misguided payment policies fuel
the college-dropout trap
“When colleges prioritize their financial interests over their public mission, everyone loses.”
Students who have outstanding balances that prevent them from finishing college are often short just a few dollars and a couple of credits.
Even unpaid library fines and balances on campus cards can trigger a windfall of consequences that push thousands of students into debt and degree-less purgatory every year.
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Lumina-supported news that uncovered unfair transcript holds
Department of Education Limits Colleges' Ability to Hold Transcripts
New rules will prevent colleges and universities from withholding transcripts from students for periods of enrollment where they received federal financial aid and paid their bill in full.
A Major Obstacle To Graduating On Time: Colleges Hold Student Transcripts For Small Debts
Silver Wolf's five-year journey toward a bachelor's degree has taken her from a small private college to a community college, both in Pennsylvania, and then to the University of Massachusetts Boston. Each time she transferred, she hit the same snag: her first school would not release her transcript because of unpaid bills.
Colleges are withholding transcripts and degrees from millions over unpaid bills
Gabriel Toro choked up behind his mask as he described the lengths it took him to complete his bachelor’s degree at the University of Massachusetts Boston.
Holding Transcripts Hostage
Down the road, after leaving school, you need to show proof to someone of all that work — maybe an employer who wanted to make sure you really had a degree, maybe a new college that needed your transcript when you tried to enroll. Then you get a terrible surprise: those parking tickets, or library fines, or final $200 for the meal plan are still lingering on your account. And that transcript you need is going to be held hostage until you clear up the bill.
Scholarships, FAFSA, and transcripts: Three new laws aim to help Hoosier students reach college
With an eye to addressing Indiana’s low college-going rate and the perception that college is too expensive, Indiana leaders approved three new laws aimed at improving college access.
What we’ve learned about getting students with ‘some college, no degree’ back
Through partnerships with organizations that work with 78 public colleges and universities in 18 states, we learned what works for getting adults to reenroll and are pleased to share the resources below.
Our Partners
Leveraging Behavioral Science to Help Families Build Savings
In the first student-level study of transcript holds, AACRAO found that 370,754 different holds affected 126,500 students in just two academic years. At these 14 institutions alone, 558 hold codes were in use. And more than half of holds were placed by someone other than the bursar, registrar, or financial aid office. These findings show that institutions must change.
Re-Envisioning Transfer
Ohio College Comeback removes barriers to re-enrollment
The Ohio College Comeback has a new approach to resolving students’ unpaid balances, providing new financial and advising support (including pathways for transfer), and addressing institutions’ own financial interest . Ithaka is currently recruiting new sites for similar programs so please get in touch if you’re a state, system, or institutional consortium.
Ohio College Comeback CompactBachelor's Attainment Team
Debra Humphreys
Vice President of Strategic Engagement
Jasmine Haywood
Strategy Director
Melanie Heath
Strategy Director
Janai Raphael
Strategy Officer for Participation
Rob Shorette
Strategy Officer for Student Success
Lumina’s BA team is working with colleges and universities will help at least 1 million more adults earn bachelor’s degrees than would be awarded based on current estimates.