§ 640 — Student debt; prohibited practices

§ 640. Student debt; prohibited practices. 1. No degree-granting\ninstitution or licensed private career school, as defined by section\nfive thousand one of this chapter, shall:\n (a) withhold a transcript because a student owes a debt to such\ninstitution or school;\n (b) condition the provision of a transcript on a student's payment of\na debt to such institution or school; or\n (c) charge a higher fee or provide less favorable treatment of a\ntranscript request because a student owes a debt to such institution or\nschool, provided however, that an institution or school may charge a fee\nfor the issuance of a transcript.\n 2. In addition to such penalties as may otherwise be applicable by\nlaw, the superintendent of financial services may, after notice and\nhearing, enjoin such transcript withholding practices and require any\ninstitution or school found to be in violation of the provisions of this\narticle to pay to the people of this state a penalty of five hundred\ndollars for each violation.\n 3. In addition to the right of action granted to the superintendent of\nfinancial services pursuant to this section, any person who has been\ninjured by reason of any violation of this section may bring an action\nin their own name to enjoin such unlawful act or practice. The court\nmay, in its discretion, award reasonable attorneys' fees to the\nprevailing plaintiff.\n