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This entry was published on 2022-06-10
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Student debt; prohibited practices
Education (EDN) CHAPTER 16, TITLE 1, ARTICLE 13-C
§ 640. Student debt; prohibited practices. 1. No degree-granting
institution or licensed private career school, as defined by section
five thousand one of this chapter, shall:

(a) withhold a transcript because a student owes a debt to such
institution or school;

(b) condition the provision of a transcript on a student's payment of
a debt to such institution or school; or

(c) charge a higher fee or provide less favorable treatment of a
transcript request because a student owes a debt to such institution or
school, provided however, that an institution or school may charge a fee
for the issuance of a transcript.

2. In addition to such penalties as may otherwise be applicable by
law, the superintendent of financial services may, after notice and
hearing, enjoin such transcript withholding practices and require any
institution or school found to be in violation of the provisions of this
article to pay to the people of this state a penalty of five hundred
dollars for each violation.

3. In addition to the right of action granted to the superintendent of
financial services pursuant to this section, any person who has been
injured by reason of any violation of this section may bring an action
in their own name to enjoin such unlawful act or practice. The court
may, in its discretion, award reasonable attorneys' fees to the
prevailing plaintiff.