Public and private colleges in most states can withhold your academic transcripts if you have an unpaid balance of any amount, or if you've defaulted on a student loan. However, that practice is slated to end nationwide on July 1, 2024, when a U.S. Education Department rule blocking transcript withholding is set to take effect.
Specifically, the new rule will prevent colleges from withholding transcripts for any course credits a student paid for with federal financial aid. It’s part of a regulation package finalized on Oct. 24, which also increases oversight of for-profit colleges.
Roughly 6.6 million students in the U.S. cannot obtain their transcripts due to as much as $15 billion in unpaid balances, according to an October 2020 report by Ithaka S+R, a not-for-profit research and consulting firm. Some states, including California and New York, have already banned the practice at their public colleges and universities, while Washington has limited it to certain situations.
Consequences of transcript withholding
Transcript withholding most affects students at community colleges, which tend to enroll people who have less access to higher education, including Black and Latinx students, older students and first-generation students, according to a data analysis by Policy Matters Ohio.
Students whose transcripts are withheld don’t necessarily owe large amounts. Nearly two-thirds (64%) of institutions say they withhold transcripts for unpaid balances as low as $25, according to the results of a 2020 survey by the American Association of Collegiate Registrars and Admissions Officers, a nonprofit professional association.
If your transcript is withheld, here are some potential consequences:
It could prevent you from attending a new school. Whether you’re trying to finish a degree, transferring to a new college or applying to graduate school, a withheld transcript means you could be blocked from acceptance into a new academic institution.
It could hurt your job prospects. If your academic credentials cannot be verified, you could be disqualified from a job, depending on the employer.
You won’t be able to access new student loans. If your transcript is being withheld due to a student loan in default, you won’t be able to take on new federal student loans.
What can you do if your school is withholding your transcript?
If your school withholds your official transcript, request an unofficial transcript; the school must provide you with one, and it might satisfy the requirements of an employer or another college you’re applying to. If your school is withholding your unofficial transcript, submit a student loan complaint to the Consumer Financial Protection Bureau.
Find out the amount you owe. Contact your school’s financial aid office to find out how much money you need to repay in order to obtain your transcript. Ithaka S+R found the average amount students owe is about $2,300.
Pay the balance if you can afford it. Depending on the amount you owe, try to pay off the past-due amount.
Negotiate a payment plan. Talk to your school’s financial aid office about a potential payment plan, and get a concrete timeline for when your transcripts will be released.
Consider a loan, but be aware of the costs. You can’t take on a new federal student loan to pay off past-due balances, but if you absolutely need to get rid of your debt immediately, some private student loans or personal loans may be available to cover past-due debt. You’ll have to meet income and credit requirements to qualify, and these loans could carry high interest rates and fees.
Wait until July 1, 2024. If you don’t need your transcript urgently, it may be easiest to wait until the new Education Department rule banning withheld transcripts is slated to go into effect.
FAQs
Correct, a California institution cannot withhold a student's transcript regardless of where the student transfers.
What to do if college won't release transcripts? ›
If your school withholds your official transcript, request an unofficial transcript; the school must provide you with one, and it might satisfy the requirements of an employer or another college you're applying to.
Can college withhold a degree? ›
Thankfully, new laws passed over the last two years have banned transcript withholding in eleven states: New York, California, Colorado, Maine, Minnesota, Washington, Ohio, Illinois, Indiana, Connecticut and Oregon.
Is there a way to erase your college transcript? ›
Academic bankruptcy is a process for college students who have earned poor grades in their classes or have struggled with their coursework. It provides an opportunity for students to start over academically by removing all of their past grades from the record.
Why would a college withhold transcripts? ›
Many colleges and universities block students' access to their academic transcripts if they owe a debt to the school. These debts can be the result of something as insignificant as a library fine or as large as an unpaid tuition bill.
What happens if your transcript is withheld? ›
Institutions sometimes withhold transcripts to force a student to pay a balance on their account. Without their transcripts, students often can't continue their education elsewhere without starting over, and they cannot apply for certain jobs.
How long do colleges hold transcripts? ›
How Long Do Colleges Keep Transcripts? College transcripts do not expire and schools are obligated to maintain transcripts for all students who have enrolled in and attended their institution — regardless of whether or not that student graduated.
Can I still go to college if I owe another college money? ›
If you still owe money on your student loans but haven't yet defaulted, you may return to school at any time. However, you'll need to avoid over-leveraging yourself. If you take out too many student loans at once, you may expose yourself to higher interest rates.
How long do colleges wait for transcripts? ›
Delivery Type. Electronic credentials are delivered as soon as the sending institution processes the request, often within one business day. Printed Transcript requests will typically be mailed within 1 business day. Processing time for printed diplomas is 7-21 business days.
Can a college withhold your degree if you owe them money? ›
Public colleges should seek an opinion from the state attorney general, as they may be prohibited from withholding transcripts on constitutional grounds. In many cases, however, state law permits colleges to withhold academic transcripts for failure to fulfill financial obligations except in cases involving bankruptcy.
In most cases, courts will defer to the college on matters of academic integrity, but students have the right to sue schools over degree revocation issues.
What happens if you owe a university money? ›
They may impose late fees and put your student account on financial hold. From there, unpaid tuition bills can bring on an escalating range of consequences, including the following: Registration hold: You'll be prohibited from registering for classes until your bill is paid and the hold is lifted.
Did bad in college can I start over? ›
Balancing work, life and finances is no easy task—and colleges understand that many students who drop out may one day decide to return to complete their bachelor's degree. Even with bad grades or a less-than-perfect transcript, you can make a fresh start.
Are college transcripts permanent? ›
Your transcript from your old institution will still be there, and you will be asked for it when you apply for any degree program. It may lessen your chances of admission, but probably not because fifteen years is a long time.
Can I go back to college with a bad GPA? ›
Conclusion. Whether you're a current high school student, just graduated or returning to college education after a break, it is still possible to be successful with a low GPA. It takes a significant amount of work and a dedication to improving yourself, but there are options for you.
How long do colleges keep transcripts? ›
How Long Do Colleges Keep Transcripts? College transcripts do not expire and schools are obligated to maintain transcripts for all students who have enrolled in and attended their institution — regardless of whether or not that student graduated.
What is the transcript law in California? ›
On October 4, 2019, California Governor Gavin Newsom signed into law Assembly Bill 1313, prohibiting postsecondary schools from withholding transcripts as a debt collection tool. The new law goes into effect January 1, 2020.
What is the California law on college transcripts? ›
On October 4, California Governor Gavin Newsom signed into law Assembly Bill 1313, which prohibits postsecondary schools from withholding transcripts as a debt collection tool. The law is effective January 1, 2020. The bill adds new Title 1.6C.
