Last month, Connecticut joined a growing number of states in limiting colleges and universities from withholding transcripts when students have outstanding debt. Effective October 1, 2023, Public Act 23-14 prohibits Connecticut institutions of higher education from withholding a current or former student’s transcript from their current employer, prospective employer, or from a branch of the U.S. military because the student owes a debt. More specifically, as to these entities, higher education institutions cannot:
- refuse to provide a student’s transcript because the student owes the institution a debt;
- condition a student’s transcript release upon debt payment;
- charge a higher fee for providing a student’s transcript because the student owes a debt; or
- use transcript release as a debt collection method.
Notably, the new law does not prohibit the withholding of transcripts from other educational institutions, such as other colleges, universities, or graduate programs.
Under the new law, a “debt” is an obligation, claim, or sum that is due or alleged to be due to an institution of higher education from a student. “Debt” does not include a fee charged for the actual cost of providing a transcript to a student.
Although the new law does not become effective until October 1, 2023, it is important that institutions currently implementing these policies consider their next steps. Institutions of higher education should also be mindful that, last fall, the Consumer Financial Protection Bureau found that a blanket withholding of transcripts in connection with an extension of credit is an abusive practice used to pressure borrowers into repayment, and it directed institutional lenders of private educational loans to cease such practice.
As we continue to review this new law, we will keep you updated on further developments. In the meantime, please reach out to any member of our team with questions regarding transcript withholding.