A recent episode of The Key, a podcast by Inside Higher Ed, highlighted the national conversation around holding transcripts in an attempt to collect student loan payments. If you weren't familiar with the practice, it is more common than you might have realized. The article reports that estimates show roughly “over 6.5 million individuals in the U.S. have their transcript held for unpaid balances.” Although the total amount of the debt's value ($15.5 billion) is small in proportion to the sum total of student debt, the impact on people's lives is significant. 6.5 million people is a large number of folks.

According to the article (which summarizes the podcast), holding a transcript can be quite counterproductive. Former students often require transcripts for employment applications or applications to continue their studies. If they are unable to acquire the transcript and thereby unable to complete their application for employment, how can students possibly earn money that they can then use to pay down the debt?

The article also points out that the collection rates for this type of debt are very low. In fact, it quotes Martin Kurzweil, director of the institutional transformation program at Ithaka S+R, as stating: “Some of the best evidence I've seen is out of the state of Ohio, where institutional debts are collected centrally by the Office of the Attorney General. After about a year, the long-term collection rate is only about 7 cents on the dollar.”

Where Do the Outstanding Bills Originate?

One interesting fact that arises from the discussion is that the largest unpaid tuition bills tend to occur when a student withdraws unexpectedly. In most of these instances, it's for personal reasons—whether that's a mental health concern, something medically-related, or something else entirely. When that occurs, the institutions are required to “pay back proportionally the financial aid the student received and paid to the institution.” Frequently, that results in students having a balance beyond the amount of financial aid that they still have. Colleges and universities then treat that as a balance due to the institution.

What Are Possible Solutions?

The article points out that there is a pilot program in Ohio that is attempting to address some of these inequalities. Unfortunately, this pilot program is not available everywhere. In those instances, how can a student address their need for a transcript or their desire to return to studies at another institution? The answer is to find an attorney-advisor who can negotiate with the school on your behalf.

The Best Attorney-Advisor to Help With College Progression Nationwide

College is supposed to be fun, not financially fraught. And mental health, medical, and other personal needs are important to take care of. Nobody should be frightened that they'll be saddled with inordinate amounts of debt and an incomplete (and unavailable) transcript.  Attorney Joseph D. Lento and the Lento Law Firm can work on your behalf to ensure you're able to progress with your studies and return to pursuing your degree or employment. Contact the Lento Law Firm today at 888.535.3686 or reach out online.