Protecting Colleges' Federal Aid Eligibility Despite Withholding Transcripts.
This bill prevents the Department of Education from cutting off federal student aid (Title IV) funding to colleges that withhold student transcripts. This protection applies even if the student has paid all institutional charges for the specific periods covered by federal aid. The practical consequence is that institutions maintain their leverage to withhold academic records as a debt collection tool without jeopardizing their primary source of federal revenue.
Key points
Colleges can withhold transcripts from students who owe them money for any reason without losing access to crucial federal student aid funds.
The law ensures institutions retain the ability to use transcript withholding as a debt collection method, even if the student paid for the specific periods covered by federal grants or loans.
Status:
Expired
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