Title 17. Education

Chapter 26. Colleges and Universities

Part IX. Miscellaneous Provisions

17:3391      Student records; outstanding student debt; student loan default

A. For purposes of this Section: 

(1) “Debt” means any money, obligation, claim, or sum, due or owing, or alleged to be due or owing, from a student. 

(2) “Default” means the failure of a borrower to repay a loan according to the terms agreed to in the promissory note. 

B. Notwithstanding any other provision of law, each public postsecondary education management board may adopt a policy to prohibit the institutions under its supervision and management from doing any of the following: 

(1) Refuse to provide a transcript for a current or former student on the grounds that the student owes a debt. 

(2)(a) Condition the provision of a transcript for a current or former student on the payment of a debt other than a fee charged to provide the transcript or enrollment in a repayment plan. 

(b) Any repayment plan established as a precondition of providing a transcript shall include a monthly payment amount. The monthly payment amount shall be established with consideration of the current or former student’s ability to pay and shall not exceed fifteen percent of the student’s monthly income. 

(3) Charge a higher fee for obtaining a transcript or provide any other less favorable treatment because a student or former student owes a debt. 

(4) Use transcript issuance as a debt collection tool. 

(5) Withhold services from a current or former student who is in default on a federal loan. Services that shall not be withheld include but are not limited to: 

(a) Providing grades. 

(b) Providing a diploma. 

(c) Course registration services. 

(d) Issuing transcripts. 

Added by Acts 2020, No. 334, § 1.