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HB 1213

Relating to the issuance of a transcript by a postsecondary educational institution to a student who is in default on certain student loans.

89th Legislature (2025)

Texas bill allows postsecondary institutions to withhold student transcripts from borrowers defaulting on specified student loans, restricting credential access for debt enforcement.

Referred to Higher Education
#education--higher--general(i0231) #education--higher--studentfees(i0234) #highereducationcoordinatingboard #texas(v4280) #studentloans(s0036)
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Bill Summary · HB 1213

Legislative bill overview

HB 1213 would restrict Texas postsecondary institutions from issuing transcripts to students who are in default on certain student loans. The bill establishes conditions under which universities and colleges can withhold transcripts as a enforcement mechanism for loan repayment.

Why is this important

Transcript withholding directly affects students' ability to transfer schools, apply for jobs, pursue further education, or demonstrate credentials to employers. This policy creates a leverage point for loan collection but also raises questions about who bears the burden of default and what consequences follow from transcript denial.

Potential points of contention

  • Debt collection vs. educational access: Using transcript withholding as a collection tool may unfairly restrict educational and employment opportunities for borrowers facing financial hardship, disability, or income-based repayment situations
  • Scope of "certain student loans": The bill's language about which loans trigger withholding is vague—unclear whether this applies only to institutional loans, federal loans, or all loan types, creating potential ambiguity in implementation
  • Due process concerns: Students may lack clear appeal mechanisms or notice procedures before transcripts are withheld, raising fairness questions about how defaults are determined and communicated

Compiled from official sources — confirm details with the bill’s official record.

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