University withholding transcript

[eLearner]

Kind of off topic but related since I'm still learning how all this college stuff works. 

Can someone give me some insight into why schools want all your old transcripts to begin with? 

If I took a course at some random school and it has nothing to do with my current degree, why do they need the transcripts?

There are a couple of reasons. The first is to enforce policies. For instance those against multiple degrees in the same discipline or too many degrees of the same type (for example TESU won't award a third bachelor's degree). Also, some schools won't give you credit for a lesser course if you've already taken a higher one, like trying to take Algebra after taking Calculus or Beginning Spanish after Spanish 3.

The second reason is to help other schools collect overdue tuition and fees like we're discussing here.

I've wondered if a school would care about this if you're paying out of pocket and in full. For instance, say a person owed a defaulted federal student loan and went to WGU and said "I'm paying in full out of pocket."