N.Y. Will Stop Withholding Student Transcripts Over Unpaid Debt

(Bloomberg) -- New York colleges will no longer be allowed to withhold students' transcripts because of unpaid debt. 

The legislation, signed by Governor Kathy Hochul, will also prevent schools from charging people who owe money a higher fee to get their transcript.

“To hold transcripts hostage until outstanding debts are paid is an unfair, predatory practice that prevents our students from reaching their full potential,” Hochul said Wednesday in a statement.

The governor announced in her State of the State address that she would propose this legislation. New York's state and city schools voted to end the practice in January. 

The move comes as President Joe Biden is considering forgiving at least $10,000 in student loans per borrower, a promise he made on the campaign trail, through executive action. The total amount of outstanding student-loan debt in U.S. is at $1.75 trillion, according to the Federal Reserve.

“Withholding a student's transcript is a punitive measure that penalizes students with less resources, while ironically making it more difficult for them to advance in higher education or obtain employment that will allow them to make outstanding payments,” Hochul said.

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