No Backdoors for Student Debt Cancellation Act

The No Backdoors for Student Debt Cancellation Act (HR 8729) prevents the Department of Education from cutting off federal student aid programs (Title IV) for colleges that withhold student transcripts when a student has paid all tuition and fees and received federal aid for that specific term. It directly affects colleges participating in federal financial aid programs and ensures students who have met these conditions cannot have their transcripts withheld as a penalty. The key provision amends the Higher Education Act to bar the Secretary of Education from using transcript withholding as a reason to make an institution ineligible for Title IV funding. This policy change focuses on preventing colleges from losing federal aid access due to transcript practices tied to fully paid terms.