Derek Slap

LEGISLATION PREVENTING COLLEGES AND UNIVERSITIES FROM WITHHOLDING STUDENT TRANSCRIPTS PASSES KEY COMMITTEE

This week, the Higher Education and Employment Advancement Committee voted in support of legislation that would prevent higher education institutions from withholding student transcripts from employers, prospective employers or branches of the military as a means to collect a student’s debt. State Senator Derek Slap (D-West Hartford), Senate Chair of the Higher Education Committee, led the Committee’s joint favorable approval of the bill.

In 2022, similar legislation was introduced and was passed on the Senate floor, but was never voted on by the House.

“This bill would end what is commonly referred to as ‘transcript holds’ that hold back job seekers,” said Sen. Slap. “Students and alumni who owe debt can’t pay that debt without employment. A ‘transcript hold’ is counterproductive. This bill would ensure prospective job seekers can more easily interview and find work. When they’re able to work, they’ll be more able to pay off that debt. This would end a penny-wise, pound-foolish practice.”

Senate Bill 922, “An Act Prohibiting An Institution Of Higher Education From Withholding Transcripts,” would prohibit institutions of higher education from withholding student transcripts from employers, prospective employers or military service branches as a means to collect student debt.

College alumni who are seeking new jobs often need to submit academic transcripts to employers, but some colleges and universities have policies restricting those with student debt from accessing transcripts; such policies can restrict alum career opportunities, can negatively impact finances in context of student loan debt and can have a disproportionate impact on those with lower incomes, experts have testified. This would ensure fewer students are held back financially and professionally, preventing them from being reported to collection agencies and otherwise being denied career opportunities just because of debt.

The Consumer Protection Agency prohibited this practice for student loans in October 2022, but it still exists when it comes to outstanding fees and charges imposed by schools.

Eight states, including California, Colorado, Illinois, Maine, Minnesota, New York, Ohio and Washington, have passed laws prohibiting or limiting the use of transcript holds.