Reverse Transfer Act Streamlines Credit Sharing Between Colleges to Speed Up Degree Completion

The Reverse Transfer Efficiency Act of 2025 is a short, sharp piece of legislation designed to cut the bureaucratic red tape that often prevents people from getting credit for the college courses they’ve already paid for and passed. Essentially, it amends the Family Educational Rights and Privacy Act (FERPA)—the law that protects your student records—to make it easier for colleges to share your transcript with each other, but only for one specific purpose: awarding you a degree or credential you’ve already earned.

The Transcript Traffic Jam

Think about the last time you moved jobs or switched banks; the paperwork is a nightmare. It’s often worse in higher education. Many people start at a community college, transfer to a four-year school, and then, for whatever reason, leave before finishing the bachelor’s degree. They might have enough credits for an Associate’s degree from their original community college, but because they transferred, those credits are sitting in limbo. This bill fixes that by creating a clear, legal path for the four-year school to send the student’s final transcript back to the community college to check if they qualify for that Associate’s degree.

The Fine Print: Consent is King

This isn't a free-for-all on your student data. The bill is very specific about the rules (Sec. 2). First, the records can only be sent to an institution where you were previously enrolled. Second, the sole purpose must be applying your past coursework toward a “recognized postsecondary credential.” This means a degree, certificate, or industry certification that actually matters in the job market, as defined by the Workforce Innovation and Opportunity Act. Most importantly, the bill maintains your control: the institution must get your explicit, written consent before the credential is awarded. If you don't sign off, the records don't move.

Real-World Impact: The Finish Line

This change is huge for the estimated millions of Americans who have “some college, no degree.” Take a construction foreman who went to community college years ago, transferred to a state university, and then left early to take a high-paying job. Under current rules, getting that Associate’s degree he technically earned requires him to chase down transcripts and fill out forms, often years after the fact. This bill automates that chase, allowing the university to send the records to the community college, which then notifies the foreman, “Hey, you qualified for that degree five years ago, just sign here.” This streamlines the process, potentially putting a valuable credential on someone’s resume with zero extra effort, which is critical when applying for promotions or new jobs where a degree is a box you have to check.