A major obstacle to graduating on time: colleges hold student transcripts for small debts
Because former students owe money, colleges are withholding transcripts from more than 6.6 million Americans who’ve transferred to another school or abandoned their pursuit of higher education. These debts total about $15 billion, but in most cases the balances owed are $25 or less, according to a new study by the research firm Ithaka S+R. In Massachusetts, more than 153,000 students who owe more than $794 million cannot obtain copies of their college records. Julia Karon, who led the Ithaka study, said once a student transfers, colleges have a couple of options to collect any money they’re owed. With enrollment down and finances a major concern for colleges that were already financially-strapped, administrators could grow even more strict about holding back transcripts and even less willing to forgive small balances. A majority of students who cannot obtain copies of their transcripts are poor and attend community colleges, so a handful of states are moving to prevent the practice. California and Washington have enacted bans, while lawmakers in New York and Massachusetts have proposed similar legislation. Now some colleges are addressing the problem, too. “Sometimes for a student, any barrier is a big barrier,” said Dawn Medley, associate vice president for enrollment management at Wayne State University. Medley led the effort to ban transcript holds at the public school as long as students agree to a repayment plan. “If you have bad credit, you can still borrow money to get a car. But if you have a past due balance at an institution — that's it, you can't go on,” she said. “In the southeast Michigan region, we realized there were almost 700,000 adults who had some college and no degree and a lot of those students were locked out because of past due debt and they couldn't access their transcripts.” Medley said while first-year college enrollment is down nearly 20 percent across the country, this new, student-centered approach has helped Wayne State maintain its overall enrollment, which is flat. “We grew over five percent in our freshman class this year,” she said. “We see that as a pretty big achievement given the pandemic.”