CINCINNATI — When Union Institute announced its permanent closure last week, its bill collectors were still hard at work, based on a June 20 email that warned one student her “official transcripts and diploma” wouldn’t be released unless she pays $4,847.
That student, Amber Scott of Madisonville, disputes the fee and questions whether Union has a right to use her transcripts as leverage to collect a debt.
“They‘re hold my transcripts hostage until I pay the ransom,” Scott said. “If you’re closing, what are you collecting for? Who is going to get this money?”
It’s a practice known as “transcript withholding” and it’s the latest Union Institute business practice to draw fire from critics of the school.
As the WCPO 9 I-Team has reported, the private, nonprofit university started paying its employees sporadically last March. Its landlord locked it out of its Walnut Hills headquarters last August. In November, the U.S. Department of Education proposed a $4.3 million fine for “ongoing, serious violations” of student loan practices. And in May, the Higher Learning Commission accrediting body placed the school on probation for its failure to pay dues and perform “periodic evaluation” of the “structures and mechanisms set forth in its policies.”
Transcript withholding is rapidly fading out of use in higher education, thanks to changes in state law and a new federal rule that takes effect Monday.
“In our research, as of 2020, about 6.5 million people across the U.S. were subject to those kinds of transcript holds,” said Martin Kurzweil, vice president of Ithaka S + R, a higher education consulting firm based in New York. “The face value of the debt was about $2,400 per individual. So, these are not small sums. They’re not amounts that anybody can just pay off.”
Since 2018, Kurzweil said 11 states have adopted new rules discouraging transcript holds because they make it harder for students to continue their education. Ohio’s rule requires transcripts to be released if a student’s employer needs it. But 27 of Ohio’s public colleges and universities have agreed to end transcript holds altogether, according to the Ohio Department of Education.
The new federal rule requires institutions to give students their transcripts for all terms in which the school received federal financial aid and the student paid their bill in full. Because partial transcripts are cumbersome to create, most schools are expected to release full transcripts whether students owe money or not.
But none of that help arrived in time for Scott, who participated in Union’s graduation ceremony last July but has no evidence that she earned her bachelor’s degree in business management.
“My plan was to go and get my masters,” Scott said. “I can’t do anything without the proper paperwork. I want to put my diploma up on my wall. I can’t do that. Union still has it.”
Scott sent us the June 20 email in which Rhonda Finch, an accounts receivable specialist for Union, explained why her “conferred degree” was on hold:
“To release the hold (on) official transcripts and diploma, a payment plan needs to be made ASAP. UI&U will lose access to the operating system after 06/25/2024 so this is an urgent matter. The payment system will be available through July 2024 so the balance will need to be paid by 07/25/2024.”
The I-Team reached out to Finch, who said she would address Scott’s concerns with her bosses. Union Institute has provided no response since then. Kurzweil advised her to file a complaint with the Ohio Department of Higher Education.
“ODHE does not have access to private college debt collection information,” spokesman Jeff Robinson said. “Students may, however, register a complaint with our agency and we will vigorously pursue enforcement of state and federal law on behalf of the student. Our goal is for every Ohio student to have a seamless opportunity to graduate or continue their education without transcript withholding acting as the barrier.”
