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Universities Hold Transcripts Hostage Over Loans
Hugh Pickens writes "Dave Lindorff writes in the LA Times that growing numbers of students are discovering their old school is actively blocking them from getting a job or going on to a higher degree by refusing to issue an official transcript. The schools won't send the transcripts to potential employers or graduate admissions office if students are in default on student loans, or in many cases, even if they just fall one or two months behind. It's no accident that they're doing this. It turns out the federal government 'encourages' them to use this draconian tactic, saying that the policy 'has resulted in numerous loan repayments.' It is a strange position for colleges to take, writes Lindorff, since the schools themselves are not owed any money — student loan funds come from private banks or the federal government, and in the case of so-called Stafford loans, schools are not on the hook in any way. They are simply acting as collection agencies, and in fact may get paid for their efforts at collection. 'It's worse than indentured servitude,' says NYU Professor Andrew Ross, who helped organize the Occupy Student Debt movement last fall. 'With indentured servitude, you had to pay in order to work, but then at least you got to work. When universities withhold these transcripts, students who have been indentured by loans are being denied even the ability to work or to finish their education so they can repay their indenture.'"
They will give you an enormous amount of patience and latitude. All you have to do is call and tell them that you can't pay them. They will ask you a few questions, then take your word in regards to your income, employment status, and expenses without asking for so much a a shred of proof, and most likely grant you a deferment of forbearance.
When I couldn't find a job about 5 years ago, at first I got by on deferment for about 6 months, after which a had to bite the bullet and take a job way beneath my education level. When I called to tell them that I was now able to pay about 50% of my payment every month, they offered to keep the deferment in place so my partial payments would go entirely to principal. Yes, that's correct - they had even stopped the interest for the entire deferment period. They stopped time itself to help me. Once I had gotten on my feet I started full repayment. When I lost that job before I'd had a chance to save and build an unemployment hedge, they did it for me again.
They withhold transcripts in cases where students have dodged them, avoided them, and failed to acknowledge the debt.
Adjunct faculty are basically the academic equivalents of temps (no benefits, low pay, term-by-term contract) or are only working part-time while making their living from another job (e.g., professional musician teaching on the side). Generally, not "a pretty good job".
In the USA not all student loans are through the government. Some of mine were, and some of mine weren't. The ones that were I didn't have to start paying until I got a job or after a certain time period. When I became unemployed I could put them on hold without paying interest until I became employed again.
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Google Apps for Education is free. There are a lot of good reasons not to use it, but your argument of "enjoy your $100k in student debt" doesn't fly - the University can reduce its costs by outsourcing email. That in turn reduces student fees, which reduces student debt.
A lot of people like Google Apps. Perhaps they did it not out of laziness, but by considering the feature set students need. Many university use crappy webmail clients like Horde or Squirrel Mail... the UX of Gmail is far ahead of those. Google Docs has excellent real-time collaboration features. There are plenty of ways for students to get hands-on experience without avoiding useful web applications.
Very true, I live in one of those places where the government can give you 100% of the tuition if you're below a set income.
It works because our education establishments are non-profits, usually registered as charities (state owned schools are non-profit by nature, but you can open your own private non-profit school if you want). There is no profit motive, so there is no drive to milk the system for money, therefore we don't have runaway costs.
People don't work at at these places to make boatloads of money, they do it for education/research/furthering knowledge/etc... If they wanted to make money, they could do that in all sorts of private companies that exist.
AFAIK, although there are no federal laws that require a university to withhold transcripts of students that are in default of their student loans, it is apparently highly encouraged by the department of education to withhold the transcript if a Title IV loan is in default.
However, some states have actual laws that require institutions to withhold transcripts. For instance, California Section 66022 of the California Education Code provides that...
The governing board of every community college district, the Trustees of the California State University, the Regents of the University of California, and the Board of Directors of the Hastings College of the Law shall adopt regulations providing for the withholding of institutional services from students or former
students who have been notified in writing at the student's or former student's last known address that he or she is in default on a loan or loans under the Federal Family Education Loan Program. The regulations shall specify the services to be withheld from the student and may include, but are not limited to, the following: (1) The provision of grades. (2) The provision of transcripts. (3) The provision of diplomas.
Also, many states (incl CA), penalize institutions that have high default rates (for instance by not making them eligible for state student loan programs like Cal Grants), so even private institutions have an incentive to help get the default rates down so they can continue to offer those loan sources to future students even if they aren't required by law to do so.
Nice that you paid for your kids. Would that every parent could do so, would that every child could count on it.
Your vision is very narrow and takes into account only people in similar circumstances as yourself.
I haven't lived with my parents since I was eight years old as they weren't able, in many ways including financially, to take care of me. I certainly could not count on them to pay my Uni tuition for me.
I, like others who don't have parents who can pay for them, took on a heavy load of student debt in order to get an education and increase my prospects for putting myself in a position where I could pay for my children's education at some point in the future because you know what? If I wanted an education I had no other choice.
Your lack of 'sympathy' for people who don't have parents to pay for their education is unfortunate. If enough people think like you then anyone who isn't so fortunate as your children will continue to be completely fucked.
Your similar lack of sympathy for poor people who got sold a bill of goods by financial institutions to follow 'the American dream' and lost what little they had, not to mention all the folks who HAD good jobs and lost them due to the failing economy and could thus no longer afford to make their normally reasonable mortgage payments, losing their homes and looking to their government to support them is similarly unfortunate. I can only hope that you have the chance to experience similar misfortune at some point in your life so that you can gain some perspective.
blindly antisocialist = antisocial