Colleges and universities in Colorado are no longer allowed to withhold diplomas or transcripts because of a student’s unpaid debt – thanks to legislation Gov. Jared Polis signed into law on Thursday.

House Bill 1049 prohibits higher education institutions from refusing to provide transcripts or diplomas to students who have unpaid fees, parking tickets or other minor costs. In addition, if a student owes tuition, financial aid or room and board fees, institutions can’t withhold transcripts or diplomas if the student needs them to apply for a job, credit transfer, financial aid or post-secondary opportunities, such as joining the military.

“They can’t earn money to pay their bills if they can’t get a job. They can’t get a job without their transcript,” Polis said. “This will help address some of the workforce needs we have across our state.”

The Senate passed the bill in a 20-13 vote in March, and the House approved it, 40-24, in February. The bill sailed through in both chambers nearly exclusively along party lines, with all Republicans in opposition to the bill and all Democrats in support – except for Democrat Rep. Dylan Roberts of Eagle, who voted against the measure.

Opponents said the bill would encourage students not to pay their debts and could result in colleges and universities raising tuition fees to make up for the funds lost by not being able to withhold diplomas and transcripts.

During the 2019-20 school year, higher education institutions in Colorado recouped approximately $242 million in student debt by withholding transcripts, according to the Colorado Department of Higher Education.

Supporters of the bill said the relief would give students the ability to earn the money needed to pay back their debt. Nationally, 6.6 million students owe approximately $15 billion in unpaid debt, according to the Colorado Department of Higher Education.

“We have an opportunity here to support our own students and to home-grow our talent,” said bill sponsor Rep. Jennifer Bacon, D-Denver. “Through the pandemic these last couple of years, people have to make hard decisions on what they can pay for. To know that a diploma or a certificate or a degree can be held up for parking tickets just breaks all of our hearts.”

The bill also prohibits institutions from charging a higher fee or providing less favorable treatment to a transcript or diploma request because a student owes debt. Students from outside of the United States are exempt from the prohibition.

The law went into effect immediately after it was signed by Polis on Thursday because of the addition of a safety clause.