Education

Withholding college transcripts for loan payment is ‘abusive,’ federal agency says

From The Hechinger Report: “Colleges that lend directly to their students cannot later refuse to release students’ transcripts as a way of forcing them to make payments, the Consumer Financial Protection Bureau announced on Thursday, calling the practice ‘abusive’ and a violation of federal law. The loans made directly by a college, rather than a traditional lender, are used to pay for classes, but they don’t come with the same protections as federal student loans do. Hundreds of thousands of students at for-profit colleges have taken these loans, known as institutional loans, and some public and nonprofit institutions also offer them.”

View the full article from The Hechinger Report.