University of Maine ∙ University of Maine at Augusta ∙ University of Maine at Farmington ∙ University of Maine at Fort Kent ∙ University of
Maine at Machias ∙ University of Maine at Presque Isle ∙ University of Southern Maine ∙ University of Maine School of Law
DATE: Jan. 15, 2023
TO: Joint Standing Committee on Education and Cultural Affairs
FROM: Samantha Warren, UMS Director of Government & Community Relations
samantha.warren@maine.edu / 207-632-0389
RE: Report on Limits to Transcript and Diploma Withholding (P.L. 2021, Chapter 538)
In January 2022, the Legislature’s Joint Standing Committee
Education and Cultural Affairs issued a divided report that advanced
LD 1838, An Act to Improve Student Access to Postsecondary School
Transcripts and Diplomas. The bill limited the ability of Maine’s
colleges and universities to withhold the academic records of
individuals with outstanding student account balances and was
ultimately signed into law by Gov. Mills in March.
While P.L. 2021, Chapter 538 did not become effective until August
2022, upon the Governor’s approval, the University of Maine System
(UMS) began immediately releasing (upon request) the transcripts
and diplomas of students, despite their debts owed to Maine’s public
universities, consistent with the law.
Uniform Records Release Policy
Also consistent with the law, UMS developed a uniform policy that governs the process for
requesting and releasing these records across all System universities. Multiple input and
implementation planning sessions were held and inclusive of professionals from each institution in
relevant service areas, including student financials or accounts (bursar), student records (registrar)
and student support. UMS universities also coordinated with the National Student Clearinghouse,
the third-party that provides secure electronic delivery of certain academic records.
That policy is online here, and also attached to this report. As you will see, the policy details the
rights of students/former students and the process by which they can access their records, which
importantly requires them to first make contact with the university. The policy also directs UMS
employees who interface with individuals requesting their records to refer these
students/former students to resources that may be available to assist them in addressing
their past due balance, including but not limited to the UMS small debt forgiveness
program through which, under some conditions, the System will forgive up to $2,500 owed.
To communicate the new policy and related procedures, all UMS universities updated relevant
university websites and additionally, the System updated the Financial Terms and Conditions that all
students must agree to upon enrollment. These terms and conditions make clear System policies
$39.6 Million
Amount currently owed
to UMS on past due
student accounts
$2,747
The average
past due balance
14,419
Number of student
accounts past due
2 | P a g e
and students’ financial obligations, including expectations around timely payment for tuition and
room and board, etc., student information privacy, and how the university will communicate about
financial and other matters. The updated terms and conditions clearly state that UMS must provide
students with their official transcript and/or diploma upon request, regardless of a past due balance.
Data on Requests Received by UMS
Since formally adopting this policy in August, UMS universities have received, and subsequently
granted, at least 257 requests for transcripts and/or diplomas from individuals with past due
balances, with the average owed to UMS ranging by institution from $1,552 at the University of
Maine at Augusta to $2,387 at the University of Southern Maine. The reasons cited in the majority of
those requests (91) were that the student/former student planned to transfer to another institution or
needed their records for a job application (54).
A total of 71 individuals who requested their records had past due balances greater than
$2,500. Many of those individuals did agree to enter into payment plans, though not all were
required to, and some individuals with balances below $2,500 also agreed to payment plans. Plans
were developed taking into account the individual’s demonstrated ability to pay and past
payment history, and some began with payments as small as $10.
A breakdown of these requests according to our best available records is below:
Balance
<$2,500
Balance
>$2,500
Avg.
Owed
Accts.
in Pay
Plan
Due to
School
Due to
Fin. Aid
App
Due to
Military
Due to
Other
UMaine
46
23
$2,004
16
13
36
N/A
2
18
UMA
33
13
$1,552
17
6
3
N/A
N/A
37
UMF
19
10
$1,472
10
14
10
1
N/A
4
UMFK
22
7
$2,376
11
8
14
N/A
N/A
7
UMM
9
N/A
$1,729
4
2
6
1
N/A
N/A
UMPI
24
6
$1,784
5
10
15
N/A
N/A
4
USM
32
12
$2,387
44
1
7
N/A
1
36
Law
1
N/A
$2,278
1
N/A
N/A
N/A
N/A
1
Recommendations
LD 1838’s path to enactment is the way the legislative process should work. The original proposal
was deeply problematic to our public universities, and we expressed concern to the Committee
about limiting our ability to recover our primary source of revenue: student tuition. At the same time,
we acknowledged that individuals are more likely to pay their balances if they are able to complete
their postsecondary education and secure a stable, good-paying job, which sometimes requires
access to their academic records.
3 | P a g e
Thanks to leadership and engagement with impacted public institutions, especially by the bill
sponsor, Sen. Eloise Vitelli, and House Committee Chair, Rep. Michael Brennan, the chaptered law
meets the needs articulated by supporters to access their records while protecting the ability of
postsecondary schools in Maine to maintain/reestablish communication with students/former
students and in certain cases, get them back in good financial standing by requiring mutually
agreeable payment plans (for those with past due balances of $2,500 or more). Our universities
report that payment on those plans has ranged from delinquency to paid in full, but that the majority
of payment plans entered into thus far are in fact current.
Today, $39.6 million in total is owed to UMS by more than 14,000 individuals with past due
student account balances. This challenges our ability as a public System to meet our contractual
obligations to our employees, and maintain affordability so that door-opening, quality postsecondary
education and workforce development are accessible to all students. While the average amount
outstanding is $2,747, more than 6,000 accounts have past due balances of $1,000 or less.
An academic record remains an important tool to keeping individuals connected with our educational
institutions. Given the relative success in reestablishing contact and payment from individuals who
were required to enter into payment plans (for example, USM now has more than $105,000 in debt
in payment plans), we would recommend the statutory threshold by which a payment plan can
be required be lowered for public four-year institutions from $2,500 to $1,000. Doing so would
uphold an individual’s ability to access their records, while also providing Maine’s public
universities and maritime academy a greater opportunity to recover payment that is past due.
We thank you for your attention to this inaugural report under P.L. 2021, Chapter 538, and welcome
the opportunity to meet with the Committee to discuss our findings and recommendations in greater
detail.
Administrative Practice Letter IX-K
Subject: Process for Releasing Official Transcript
and/or Diploma for Students with Financial Holds
Effective: 08/08/2022
Under Maine law, the University of Maine System (UMS) must provide current and former
students with their official transcript and/or diploma upon request, regardless of a past due
balance or debt owed to the institution. This Administrative Practice Letter (APL) serves as
the uniform policy regarding the conditions and procedures by which those requested
academic records are to be released, and must be applied consistently by the System and
all UMS universities.
Procedures for Students with Past Due Balances/Debt of
$2,499 or Less
Upon the request of a current or former student with a past due balance or debt for
damage/loss charges (e.g. library books, devices, facilities damage, etc.) of $2,499 or less,
UMS universities must provide that student’s official transcript and/or diploma.
Because students with an outstanding balance will have a Financial/Diploma/Transcript
(FDT) Hold Indicator posted on their past due account, they will not be able to request their
official transcript and/or diploma including through third-party self-service options (i.e.
National Student Clearinghouse) without first contacting the institution.
To obtain their record(s), students with an outstanding balance should contact the Student
Accounts Office(s) at the UMS university/universities through which they incurred the debt
that resulted in the hold(s). UMS universities shall communicate this record(s) request
process for students with outstanding balances on all relevant institutional website pages.
Following such contact by the student, the Student Accounts Office will temporarily lift the
FDT Hold Indicator for a period of 14 calendar days so the student can then request their
official transcript and/or diploma through the Registrar’s Office or available self-service
options. After 14 days, the FDT Hold Indicator will be reapplied and remain in place until the
balance/debt is fully discharged, or until the student makes another records request subject
to this APL.
The Student Accounts Office shall encourage the student to pay the outstanding balance or
enter into a reasonable repayment plan, however in no event may UMS and its universities
condition the release of the requested record(s) on agreement to a repayment plan for a
balance due of $2,499 or less.
If a student has outstanding balances and is seeking official transcripts from multiple UMS
universities, they must contact the Student Accounts Office at each university to request
that the FDT Hold Indicator applied by that university be temporarily removed.
Procedures for Students with Past Due Balances/Debt of
$2,500 or More
To request the release of their official transcript and/or diploma, a current or former student
with a past due balance of $2,500 or more should contact the Student Accounts Office(s) at
the UMS university/universities through which they incurred the debt that resulted in the
hold(s).
Upon the student’s agreement to enter into a payment plan with the UMS university that
takes into account the student’s demonstrated ability to pay and past payment history, the
Student Accounts Office will temporarily lift the FDT Hold Indicator for a period of 14
calendar days so the student can then request their official transcript and/or diploma
through the Registrar’s Office or available self-service options. UMS or its universities may
not require a student to make a payment on a repayment plan prior to releasing the
requested record(s). After 14 days, the FDT Hold Indicator will be reapplied and remain in
place until the debt is fully discharged, or until the student makes another records request
subject to this APL.
A student may appeal the terms of the repayment plan presented by the Student Accounts
Office in writing to the university’s Chief Business Officer, who shall issue a written decision
with 14 calendar days.
Additional Student Accounts Office Procedures Related to
Records Requests from Students with Financial Holds of Any
Amount
The Student Accounts Office shall also notify students that the temporary release of the
FDT Indicator Hold does not provide the student with the ability to enroll, nor does it change
the balance due, and that UMS and its universities will still utilize in-house collection efforts,
commercial collection firms, legal services, and the State of Maine Bureau of Taxation for
collection of past due balances.
When applicable and appropriate, the Student Accounts Office will refer students to
resources to assist them in addressing the past due balance, including but not limited to the
UMS small debt forgiveness program.
Additionally, to inform required annual reporting by UMS to the Maine State Legislature, the
Student Accounts Office will place a Diploma/Transcript Release Flag on the account,
capture the amount owed at the time of the temporary release of the hold, and select from
one or more of the following Record Request Reason Codes:
A. Job application;
B. Transfer to another institution;
C. Application for financial aid;
D. Pursuit of opportunities in the military or National Guard; or
E. Pursuit of other postsecondary educational opportunities.
Procedures for Students Who Have Defaulted on Institutionally
Held Loan
Institutionally held loans are those Federal financial aid (e.g. Perkins and some nursing
loans) the terms and conditions of which cause the university to be party to the loan
agreement with the student. Current or former students defaulting on such loans, regardless
of the funding source, are considered to owe a debt to the institution and thus shall make
requests to receive their official transcript and/or diploma from UMS or its universities in
accordance with this APL by directly contacting or via university referral to UMS Loan
Processing and Receivables Management, which department shall perform the temporary
removal of the Defaulted Loan Hold (DLN) on the account as outlined above.
Procedures for Students Who Have a Financial Hold Due to Outstanding Student Loan Exit
Counseling
Student loan exit counseling ensures borrowers are informed about their student loan
obligations, understand various repayment options and are aware of the implications of
default. For this reason, holds placed on the accounts of students and former students
solely because they have not completed their student loan exit counseling session required
by Federal law will not be temporarily removed and will remain until such counseling has
been completed.