A new Assembly Bill introduced by Assembly Member Luz Rivas, California AB 1313, could potentially make it more difficult for postsecondary schools to collect on debts owed by students. Under this measure, schools would be prohibited from using transcript issuance as a debt collection tool, including refusing to provide a transcript, conditioning the provision of a transcript on the payment of a debt, charging a higher fee or providing less favorable treatment of a transcript request because a student owes a debt.

One of the most effective ways to get payment on a past-due student debt is to withhold a transcript. Many students or former students that may previously have been unwilling to pay will often be more open to making a payment plan or working with a school or agency in order to have their transcript released. However, if this new bill passes, schools in California could find themselves in a more difficult situation when it comes to getting students to pay. Without this additional leverage available, Cedar foresees an increase in debts that go unresolved in the educational industry.

“Without the added incentive, students may neglect or refuse to pay their past-due balances and have no reason to come back and resolve their debt. Which is why it is all the more important to have an agency on your side that has the know-how to reach out effectively and resolve the matter amicably, in a way that will help both the student and the school achieve their goals.” says Kaitlin Lindros, Educational Client Relations representative at Cedar.

Cedar Financial’s clients enjoy recovery rates never seen before in the industry. We seamlessly navigate local laws, languages, and cultural barrier with skilled representation on six continents.

Cedar Financial can diplomatically resolve your accounts or disputes to recover lost money from students everywhere. For more information, visit https://cedarfinancial.com/education/ or Contact us today.

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