HR0774enr 102ND GENERAL ASSEMBLY

HR0774 Enrolled LRB102 26892 ECR 38006 r

HOUSE RESOLUTION 774

WHEREAS, Colleges may place a "hold" on student accounts for various reasons, including having an outstanding balance from unpaid tuition, room and board, library fees, or parking fines; a hold can also occur for nonmonetary reasons, such as conduct violations or unreturned equipment; and

WHEREAS, When students are enrolled, this hold might prevent them from registering for the next term and continuing their studies; colleges can also withhold the transcripts of current or former students wishing to transfer to another institution or to apply for an internship or a job if they have a hold on their student account; and

WHEREAS, Credits these students have earned are left "stranded" at the institution until they rectify the situation, leaving many students in educational limbo; and

WHEREAS, In a 2020 report, the research group Ithaka S+R estimated that approximately 6.6 million current and former students, many of them adults who did not complete their secondary education, owed as much as $15 billion as of 2018; the average unpaid balance was $2,300; and

WHEREAS, The report cites a 2016 survey from the National Association of College and University Business Officers revealing that 98 percent of colleges admitted to withholding transcripts as a debt collection tactic; and

WHEREAS, In 2021, the American Association of Collegiate Registrars and Admissions Officers (AACRAO) issued a similar report stating that 95 percent of colleges withhold transcripts with 64 percent placing a hold for balances of less than $25; within their sample group, 42 percent of holds preventing access to a transcript were for debts under $1,000; and

WHEREAS, Ithaka's 2021 follow-up report titled "Stranded Credits: A Matter of Equity" claims this problem disproportionately affects students of color and those from low socioeconomic backgrounds; and

WHEREAS, For students, especially students of color, first generation, and/or those from low-income backgrounds, stranded credits are the difference between dropping out and earning a degree and securing a better future; and

WHEREAS, Public colleges enrolling more than 40 percent of Pell-eligible students are more likely to withhold transcripts for an outstanding balance; and

WHEREAS, As of the fall of 2021, Eastern Illinois University has $50.4 million owed by 8,900 students to the University; as of March 8, 2022, Western Illinois University had 203 students that had been registered in the fall semester that owe the University over $1,000; the University of Illinois System places financial holds in October to students with a past due balance from fall tuition and fees, which acts as a reminder to students of their delinquent balance, and the majority of holds are addressed by the spring, with the latest delinquent balance hovering at $5.9 million, down from $114.5 million in the fall; students who have balances greater than $1,500 are prohibited from registering for a future term; the University System also restricts transcript access to students with past due balances of $25 or more; and

WHEREAS, The problem is most prevalent at community colleges, which Ithaka estimates could have as many as three million former students with stranded credits; and

WHEREAS, At the state level, California became the first state to ban transcript holds at public and private colleges in 2019; Washington state enacted a similar law allowing students with balances to access transcripts; in 2020, Louisiana passed similar legislation, although Louisiana's law pertains only to public colleges; and

WHEREAS, A 2021 Massachusetts bill proposed granting students access to academic transcripts; in January of 2022, Maine introduced a measure to ban transcript holds for students at four-year colleges owing $2,500 or less and for those at two-year colleges owing less than $500; and

WHEREAS, In New York, Governor Kathy Hochul announced that the State University of New York ended the practice of withholding transcripts; and

WHEREAS, In 2021, the City University of New York (CUNY) system banned transcript holds because of pandemic concerns; some 74,000 students benefited from this decision and were allowed to register with outstanding balances; and

WHEREAS, Since January of 2021, Northeastern Illinois University (NEIU) has provided over $272,000 in debt relief funds for students who dropped out in order to assist them in re-enrolling at NEIU; the "Come Home to NEIU" stop out initiative encouraged students with good academic standing who previously attended NEIU to return to the University and continue taking classes to complete their degrees; in 2021, 59 students returned to NEIU; for those students, up to $3,000 of their debt was waived and they received a $1,250 scholarship; currently, the past due debt amount for NEIU students is approximately $27 million; and

WHEREAS, Governors State University allows students to register if they have set up a payment plan and are actively making their payments; however, students with holds are prevented from obtaining transcripts; and

WHEREAS, Ithaka is working on a pilot program in Ohio, which is to launch in the spring of 2022; under this Ohio program, a student with debt can transfer to one of the eight participating colleges, and the original institution will forgive their debt and release their transcript; in return, the college to which the student is transferring will owe a small fee to compensate the initial institution for its loss; and

WHEREAS, In 1998, the U.S. Department of Education issued a "Dear Colleague" letter encouraging colleges to withhold transcripts in cases involving loan defaults and has yet to officially reverse its stance on that matter; and

WHEREAS, The AACRAO report notes that among its study participants, 66 percent have a debt-elimination program, and 29 percent offer debt-forgiveness, such as Wayne State University's Warrior Way Back program; two-thirds have used funding from the CARES Act to forgive outstanding student debt during the COVID-19 pandemic; and

WHEREAS, The practice of holding transcripts, degrees, and the ability to enroll into classes has flourished as a means to create revenue; and

WHEREAS, Increasing enrollment at our public universities should include and not ignore students that have a desire to enroll; and

WHEREAS, Students who earn degrees and get jobs are far more likely to be in a financial position to settle their debt; yet this is made harder by universities placing holds on student's account for minor debts; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED SECOND GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge Governor JB Pritzker and public and private universities in Illinois to explore the idea of allowing students who are prohibited from re-enrolling in college because of past due debt to the university to finish their degrees; and be it further

RESOLVED, That we urge the United States Department of Education to rescind its 1998 "Dear Colleague" letter encouraging colleges to withhold transcripts in cases involving loan defaults; and be it further

RESOLVED, That we encourage the United States Congress to urge the U.S. Department of Education to rescind its "Dear Colleague" letter; and be it further

RESOLVED, That suitable copies of this resolution be presented to JB Pritzker, all institutions of higher learning in the State of Illinois, the U.S. Department of Education, and all members of the Illinois Congressional Delegation.