Co-authored by Celina Pierrottet and Valli Pendyala at the National Association of State Boards of Education
Many students feel that high school isn’t preparing them for what comes next. This challenge is one that many states are working to address through Portraits of a Graduate, skills-based assessments and more meaningful approaches to learning.
At the same time, states are also rethinking how to capture learning beyond the traditional Carnegie-based unit by exploring statewide competency-based transcripts. As competency-based education expands, it’s important to consider how to capture both academic and non-academic achievements in ways that help students see their progress and feel more confident about their futures.
What is competency-based education?
Through competency-based education, sometimes referred to as mastery- or proficiency-based learning, students demonstrate their competency in key knowledge, skills and dispositions at a pace that makes sense to them, rather than time spent in a classroom. Many high school transformation efforts center on competency-based education because it allows schools to move beyond traditional constraints, such as fixed calendars, seat-time requirements and classroom-based learning, to measure credits.
The challenge and opportunity: competency-based transcripts
State policymakers have an opportunity to reshape policy environments to support transcripts that reflect mastery of learning and enable more student-centered approaches to high school transformation. This shift helps address two key challenges that often hinder innovation within traditional school structures.
First, graduation requirements are typically tied to credit hours, and the traditional A-F transcript was not designed to record what students truly know and can do. A single letter grade next to a course title reveals little about the students’ mindsets, critical thinking skills or learning experiences outside the classroom. By adopting competency-based education and aligned transcripts, schools can more effectively reflect students’ deeper learning and broader academic achievements.
Second, existing policies can act as unintentional roadblocks to the adoption of a competency-based transcript. For example, some states tie high school graduation or financial aid eligibility to formal grade point average (GPA) requirements, and others mandate the use of a specific type of transcript and uniform grading scales across all high schools. This can limit flexibility and make it difficult to fully implement more meaningful, personalized approaches to learning and assessment.
The National Association of State Boards of Education (NASBE) and KnowledgeWorks have partnered with six states through the High School Transformation State Network to build and enhance the capacity of state boards of education to support student experiences that foster content mastery and durable skills. This work is being done in partnership with higher education and workforce development agencies. As a part of the network, NASBE and KnowledgeWorks have jointly identified key considerations and best practices for states to consider when exploring competency-based transcripts. At least one state, Washington, has enacted legislation to develop recommendations for a statewide competency-based transcript, and several others in the network have expressed interest in this idea. Below are key considerations for states evaluating whether to adopt a statewide competency-based transcript:
1. Define the transcript focus and structure
States can begin by deciding what the transcript will communicate—grades, standards, course completion, competencies or a mixture of these. Some, like North Dakota and Utah, have developed competency frameworks that could serve as the foundation for a competency-based transcript. States will then need to consider if school districts can use their own competencies or will be required to use state-created ones. Examples of what a transcript could look like include the Mastery Transcript Consortium’s product or Arizona’s Grand Canyon Diploma. North Carolina is also exploring a transcript that meaningfully displays content and skill development, making its development worth watching.
2. Set use requirements and verification procedures
States should consider the requirements for implementing new competency-based transcripts and how this tool can be used to verify students’ skills. Will schools using competency-based learning be required to adopt a state-created or state-endorsed transcript, or will they be allowed to choose from approved alternatives? Will there be a defined method for capturing and reporting mastery of skills, such as North Dakota’s mastery framework policy? Maine’s now-repealed statute, which was in place until 2019, serves as a historical example of what this has looked like in one state. The statute outlined diploma requirements, methods for demonstrating proficiency and exceptions to the rule. Though no longer in effect, it offers insight into how such a policy might be structured.
3. Determine the creation and management of transcripts
States must decide who will develop the transcript and how it will be accessed. Will the state build it, or will it partner with a third party? Will it be digital? How will it interact with other tools, such as employer-focused learning and employment records? North Dakota’s digital credential application is one example of how to approach these questions. It enables students to collect all of their degrees, certifications, badges and skills in one place, including industry-recognized credentials through Open Badges. Badges can be shared digitally with employers or institutions of higher education.
4. Align supporting policies and create incentives
States should assess whether policies, such as GPA requirements, financial aid rules or college admissions processes, need to be changed to support the use of new transcripts. They might also consider offering incentives, such as connecting the new transcript to preferential consideration for college admissions or state hiring processes that give students with such a transcript preferential consideration. The former specifically would help college admissions offices review these transcripts alongside traditional ones. While not a transcript, Indiana’s recently created diploma endorsements connect a demonstration of essential skills to automatic college admissions. West Virginia and South Carolina statutes contain provisions requiring institutions of higher education to treat competency-based transcripts the same as traditional transcripts..
By embracing competency-based transcripts, states have a powerful opportunity to align policy with the needs of students, communities and the workforce, where skills, knowledge and real-world readiness matter more than seat time. States that take these bold steps to create meaningful, flexible transcripts will not only support high school transformation but also pave the way for a more personalized, future-ready education system.

Celina Pierrottet
Celina Pierrottet is an Associate Program Director at the National Association of State Boards of Education and leads the organization’s high school transformation portfolio.
