In July 2024, a new set of federal regulations significantly limiting transcript withholding for students who owe a balance to their institution went into effect. Predating this policy, 13 states created their own rules prohibiting or limiting this practice. These policies varied across states with some creating blanket bans on transcript withholding and others only banning the practice in limited circumstances, such as when a transcript was needed by employers or the military for education verification.

Ithaka S+R partnered with AACRAO to survey 150 registrars in these 13 states to understand how the state bans impacted their institutions. We are excited to share our new report with the findings.

These are important findings in their own right—affecting an estimated 500,000 students. But they also provide a preview for how institutions across the nation may respond to the new federal rules, with implications for millions of other students.

So what did we find? State bans prompted the majority of institutions responding to the survey to eliminate the use of transcript holds for unpaid balances or entirely. They also led a majority of institutions to increase efforts to prevent unpaid balances in the first place. For example, institutions changed how they communicated balance updates to students, added financial literacy topics to orientation and advising meetings to help students understand the implications of an unpaid balance, and initiated or expanded debt forgiveness and emergency grant programs.

While some institutions reported increases in the average unpaid balance owed by students and the number of students sent to collections, others reported decreases in both of these measures, and most reported no change.

Read the full report on AACRAO’s site to learn more about how state bans have impacted policies and practices at institutions.