This article is a follow-up to our article on Stranded Credits posted in June 2023. New federal rules will affect potential withholding of transcripts for unpaid funds.
Students who leave college, either by withdrawing or graduating, but still owe money to the college, may not be able to access their official transcript of work completed until they are able to pay their outstanding balance. The college withholds the student’s transcript and thus their credits are “stranded” until they are able to pay. This often prevents some students from being able to transfer to another institution or to get a job. According to research by New York non-profit Ithaka S & R Research, this may affect over six million students.
New federal rules may change this. The Education Department submitted a package of new rules last spring aimed at increasing clarity and transparency around student aid, and requiring colleges to present financial aid information to students and their families more clearly. The new rules were approved in late October 2023, and will go into effect on July 1, 2024.