Institutional debt, also referred to as direct-to-school debt, is debt owed by students to their college or university for unpaid tuition, fees, room and board, education benefit overpayments, or fines. Unpaid tuition is the most common debt and can arise if a student enrolled with the expectation of aid that did not come through, or if a student withdraws early and isn't able to complete their coursework. A student can be liable even if the institution wrongly allowed the student to register. Debts owed to a State University of New York (SUNY) or City University of New York (CUNY) institution may be collected in-house, referred to a private collection agency, or certified to the NYS Department of Taxation and Finance if the debt is less than $500. Debts of $500 or greater that go uncollected are referred to the NYS Office of the Attorney General (OAG) to file a lawsuit against the student. If the student defendant fails to file an answer and cannot settle the debt, the court grants SUNY a default judgment. Judgments can be collected through garnishment of wages, restraining bank accounts, tax return offset, and/or placing a lien on property. This report discusses harmful impacts of direct-to-school debt, students without safety nets, and the Ohio College Comeback Compact. The report ends with policy change considerations for SUNY and CUNY to ensure institutional debt is not a barrier to college completion.