07/09/2024
2024 Update: Transcript Hold Regulations and Unpaid Balances
2/27/2024 8:00 PM
Managing regulatory changes is a top trend for business officers in 2024. One of the most discussed and anticipated changes is a new rule on withholding transcripts of students with unpaid balances.
In October 2023, the US Education Department announced they are prohibiting withholding transcripts of students in specific situations. The rule will go into effect on July 1, 2024 and applies only to students who have used federal financial aid to pay for their education.
The National Association of College and University Business Officers (NACUBO) summarized the new transcript rules as the following:
Institutions cannot withhold transcripts—or take other negative actions against a student—in cases where a debt on a student’s account is created because of an error made by the institution in administering Title IV funds, or when there is fraud or misconduct by the institution or its employees
Institutions will have to provide an official transcript to a student for payment periods when the student received Title IV aid and all institutional charges for that payment period were paid or included in an agreement to pay
Institutions will be able to utilize other existing methods of collecting a balance on a student’s account
States may have additional rules on transcripts and institutions should inquire their general counsel on the status of their state’s laws. For instance, some states have enacted laws prohibiting withholding transcripts for a number of reasons, including the need for a student to send transcripts to employers, other colleges and universities, or the military