Your college transcript is an official record of your academic progress. It’s a vital document that may be used to verify the advanced education you completed when you’re transferring to a new school or securing employment. However, until recently, some colleges would withhold transcripts if a student owed them money.
That practice changed in July 2024, when the Department of Education finalized a regulatory provision to provide students with greater protections regarding academic transcript withholding.
Learn more about how the new regulation works and what it might mean for you.
Key Points
• New federal regulations limit colleges from withholding transcripts for courses paid with federal aid, effective as of July 2024.
• Transcript holds can delay students’ further education, job prospects, and professional exams.
• Additionally, some states have banned or restricted transcript holds, and others have pending legislation.
• Colleges may still hold transcripts for non-federal aid debts, but many are moving away from this practice.
• Students can negotiate with institutions to release transcripts despite unpaid balances.
Legal Considerations
Before the new regulatory change went into effect, many colleges would withhold transcripts as a way to try to collect unpaid debts a student owed. The Consumer Financial Protection Bureau (CFPB) flagged the practice as a debt collection strategy that harms former students, both academically and for long-term earning potential.
Federal and State Laws
On October 31, 2023, the Department of Education published its final rule changes under the Higher Education Act of 1965. Among the changes was one that limits colleges that administer Title IV federal aid, including federal student loans, federal grants, and work-study programs, from transcript withholding practices.
The new provision states that colleges cannot hold transcripts that include credits a student paid for using federal financial aid.
For example, let’s say you’re a graduate of a college that administered federal financial aid to you while you were enrolled, and you used your financial aid award to pay for school courses. In this scenario, you’re entitled to receive an official transcript of any credits or hours that were paid for by federal money.
The new provision also states that colleges can’t withhold transcripts due to an unpaid debt that resulted from misconduct or fraud at the institution or an error in the way the school administered the federal aid.
Some states have already banned or restricted college transcript holds. According to a 2024 survey by the American Association of Collegiate Registrars and Admissions Officers (AACRAO), the following states restrict — or completely prohibit — colleges from withholding students’ transcripts:
• California
• Colorado
• Connecticut
• District of Columbia
• Illinois
• Indiana
• Louisiana
• Maine
• Maryland
• Minnesota
• New York
• Ohio
• Oregon
• Washington
Additionally, as of June 2024, six states (Massachusetts, Missouri, New Jersey, Oklahoma, Texas, and Virginia) have pending legislation that restricts academic institutions from holding transcripts from former students.
Challenges for Colleges and Universities
When the regulation changes were announced in October 2023, it was unclear how colleges would respond. The regulation explicitly prohibits transcript holds only for courses students paid for using Title IV federal funding. Therefore, institutions could technically choose to withhold course and credit information that was paid for using non-federal aid and provide the student with a partial transcript instead.
However, schools likely would have a difficult time separating which courses students paid for using Title IV funds versus other financial sources, such as private student loans. A 2024 Transcript Hold Regulation Impact survey by the AACRAO and Ithaka S+R, a higher education research firm, found that 77% of institutions surveyed said they would not implement a partial transcript policy. Furthermore, 69% of colleges said they would stop using transcript holds as a means of recouping students’ unpaid balances.
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Common Reasons for Transcript Holds
Colleges and universities have typically withheld transcripts for various reasons. An official transcript might be withheld due to unpaid tuition and fees, past-due library fines, or campus parking citations. A transcript could also be withheld due to disciplinary actions resulting from a violation of the school’s code of conduct.
A student’s unpaid debt doesn’t have to be in the thousands, or even hundreds, of dollars for institutions to hold back transcripts. A study by the AACRAO and Ithaka S+R found that 64% of colleges withhold transcripts because of unpaid balances that are less than $25.
Impact on Students
Not having timely access to academic transcripts can result in delayed or missed opportunities for students in furthering schooling or in their careers.
Career and Education Consequences
Ramifications caused by a withheld transcript could be significant and might include:
• Prevent or delay a student’s admission into a new school. Without their transcript, students who want to transfer to a new school or continue their education later in life will have a harder time proving the academic credits they’ve earned. Not being able to access official transcripts can prevent them from admission entirely or result in having to retake courses.
• Derail potential job prospects. Certain professions require proof that you’ve completed specialized courses related to your career field. Having transcripts withheld can jeopardize job prospects that might unlock lucrative career opportunities.
• Disqualify students from participating in professional exams. Some professional exams, like the American Bar Exam, require official college transcripts in order for students to take the test.
Financial Implications
A withheld transcript can also cost a student money.
• Can impact future financial aid. Not having access to official transcripts due to an outstanding balance might make it difficult for students to apply for grants and scholarships that require a transcript for eligibility verification. Additionally, students whose transcripts were withheld due to a defaulted federal student loan would be ineligible for a new federal loan.
• Can result in further financial inequity for under-represented groups. Advocates of the new federal regulation to limit transcript holds stated that the practice greatly impacts students who are already disadvantaged in the higher education system. This includes low-income students, first-generation college students, and students of color.
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Strategies for Obtaining Withheld Transcripts
If you were denied your official transcripts and aren’t protected by the new Department of Education rule, there might still be a way for you to get your transcripts.
Negotiate with the Institution
It’s worth seeing whether you and your former school can find middle-ground when it comes to releasing your transcript. For example, you could offer to pay a portion of your unpaid balance now, in exchange for your transcripts, and agree to repay the reminder by an agreed upon date. A student loan payment calculator may be helpful in figuring out what you can afford.
The school administrator might also be willing to make an exception if you’re facing a hardship that makes paying back the debt difficult. For example, if you’ve been unemployed and a new job opportunity that requires the transcripts can help you regain steady income, the school might agree to work with you since the new job should help you repay what you owe.
Explore Payment Plans
Another approach to potentially unlocking your transcripts is to speak to your school administrator about its payment plan options. Prepare to show proof that you can financially follow through with the payment plan by having pay stubs or other proof of income on hand.
Propose a monthly payment that realistically is aligned with your budget, and a timeline of when you’ll fully repay the debt. As an additional show of good faith, consider offering to have payments automatically withdrawn from your bank account. This isn’t a surefire approach, and the institution may decline your request for a payment plan, but it’s worth exploring.
Alternatives and Solutions
If none of the above methods works for you, there are other options you can pursue.
• Pay what you owe. Find out how much your unpaid debt to the school is. If the amount is within your means, consider paying it and getting out of student loan debt to avoid delays if you need access to your transcripts.
If your loan payments are challenging to make, you might want to consider refinancing student loans. With refinancing, you replace your old loans with a new private loan, ideally one with lower interest rates and more favorable terms. This could make it easier to manage your payments. Just be aware that refinancing federal loans means they are no longer eligible for federal programs and benefits.
• Request an unofficial transcript. In some cases, such as when an employer wants to verify that you took a particular college course, an unofficial transcript from your school might suffice.
• Submit a complaint. If your college is withholding your transcripts because you owe money, but you believe you’re protected under the new transcript withholding provision, you can file a complaint with the CFPB.
The Takeaway
The new regulation by the Department of Education regarding the withholding of college transcripts is a win for the millions of students who use Title IV federal financial aid to fund their education. These students are now generally protected from colleges withholding their transcripts as a debt collection practice.
However, colleges still have a limited scope in which they can deny transcripts. Students who’ve paid for their education using private student loans, for instance, may find their transcripts withheld if they owe the school money. Students looking for manageable ways to pay off their loan debt — and therefore gain access to their transcripts — may want to explore student loan refinancing, especially if they can qualify for favorable rates and terms that might make repayment easier.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Is it legal for colleges to withhold transcripts?
As of July 1, 2024, a new regulation from the Department of Education states that colleges can’t hold transcripts for courses that students paid for using federal aid. This rule applies whether the student has an unpaid balance, like campus parking fines, or a defaulted federal student loan.
How long can a college withhold transcripts?
A newly enacted federal law limits colleges from holding your transcripts. This rule applies to students who received and paid for their college courses using Title IV funding, like federal Direct Loans and through the federal work-study program.
Can I get my transcript if I owe money to the college?
A new federal regulatory change that went into effect on July 1, 2024 says that students who paid for their courses using federal money have a right to their academic college transcript. However, colleges can hold transcripts due to balances on the student’s account if courses were paid for using non-Title IV aid.
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