Updated for context as of 2024. This is general information, not legal advice.

Executive summary

Form 138 (Report Card) shows a learner’s final grades for the school year and is typically needed for enrolment to the next grade level or for scholarship or honors verification.
Form 137 (Permanent Record) is the official transfer credential between schools. It is requested school-to-school and follows a learner across grade levels.

Key takeaways

Withholding Form 137: As a matter of long-standing DepEd policy and practice, schools should not block the inter-school release of Form 137 simply due to unpaid accounts. Receiving schools request it directly; it is not meant to be hand-carried by parents/guardians.
Withholding Form 138: Many private schools attempt to condition the release of Form 138 upon settlement of unpaid tuition or fees. Whether this is lawful depends on the interaction of DepEd rules, the enrolment contract, and public-policy limits designed to protect continuity of education.
Continuity of education & recent legislation: National policy has increasingly prohibited coercive practices that interrupt learning (e.g., “no permit, no exam” policies). While those rules principally target testing access, they influence how regulators view withholding of grades/credentials as a collection tactic.
Practical reality: Even where a school is not allowed to hold back a transfer credential, it may still hold the card (Form 138). In such cases, workarounds exist (certifications of grades, school-to-school requests, undertakings, payment plans) and regulatory remedies are available.

The legal & regulatory landscape

1) Constitutional and statutory foundations

The 1987 Constitution recognizes the right to quality education and allows reasonable regulation of private schools in the public interest.
The Education Act of 1982 (B.P. Blg. 232) and subsequent issuances empower DepEd to regulate basic education, including student records and school policies.
Contract law (Civil Code) governs the enrolment agreement (a contract between school and parents/guardians) but cannot defeat public policy or deprive a learner of access to basic education.

2) DepEd’s role over student records

DepEd prescribes how Form 137 and Form 138 are created, managed, and released.
Form 137 is official and travels school-to-school; Form 138 is issued to the learner (or parent/guardian) each year and is commonly used for next-grade enrolment.

3) Consumer-protection and “no-shaming” principles

Schools may collect lawfully due fees, but public-policy limits restrict humiliating or coercive tactics (e.g., public posting of debtors, barring entry to exams or classes, or shaming students for arrears).
Data privacy rules require confidential handling of account information; disclosures must be purpose-limited and minimized.

4) The “No permit, no exam” regime and ripple effects

Recent national policy curtails academic penalties for unpaid fees, especially blocking exam access.
While these measures don’t always expressly mention Form 138, they reflect a regulatory trend: collection should not disrupt learning continuity or withhold essential transfer credentials.

Can a private school withhold Form 138?

The short answer

It depends:
- Not allowed: to block a transfer by refusing the inter-school release of Form 137 because of unpaid fees.
- Contested/conditioned: withholding Form 138 is often attempted and sometimes defended as a contractual consequence of unpaid accounts. However, if withholding the card effectively prevents enrolment or advancement, regulators tend to require a workaround that allows the child to continue schooling while the debt is handled separately.

Typical regulatory and practical outcomes

For transfer to another school:
- The receiving school should request Form 137 directly from the prior school.
- The prior school should release Form 137 (school-to-school), regardless of arrears.
- If the prior school resists, parents can elevate to the Division Office for intervention.
For same-school re-enrolment or scholarship processing:
- A school may try to hold Form 138 pending payment; however, alternatives are often required (e.g., Certification of Final Grades, Advisory of Learner’s Outcomes, or a Registrar’s certification) so the child is not barred from continuing education.
For graduating learners:
- Schools cannot invalidate completion for non-payment; they may pursue civil remedies for the debt, but completion status should be accurate and provable via official records.

Distinguishing the documents (why it matters)

Document	What it is	Who requests it	Common use	Can it be withheld for unpaid fees?*
Form 137	Permanent academic record	Receiving school (school-to-school)	Transfers, academic history	Generally, no. Prior school should transmit upon official request.
Form 138	Annual report card	Issued to learner/parent	Re-enrolment, scholarships	Often attempted, but regulators expect workarounds to protect continuity of education.

*Subject to current DepEd issuances and the specific facts of the case.

What schools can do lawfully to collect

Bill and demand payment from the contracting party (usually the parent/guardian), apply agreed late fees, and deny non-academic privileges (e.g., yearbook, non-essential activities) if clearly stated in the contract and not discriminatory.
Offer payment plans or promissory notes with reasonable schedules.
Pursue civil remedies (e.g., small claims) against the parent/guardian, not the child, to recover unpaid balances.

What schools should not do

Block transfers by refusing to transmit Form 137 to a receiving school.
Humiliate or shame the student (public postings, in-class announcements, special lines for “delinquent” students).
Disclose a learner’s debt details beyond what is necessary for legitimate school purposes.
Condition exam access on permits tied to payment (where prohibited).
Misstate academic status (e.g., mark “No grade” to pressure payment when grades are already finalized).

Practical playbook for parents/guardians

If you’re staying in the same school

Ask for a written statement of the outstanding balance and options (payment plan, partial settlement, fee condonation).
Request a Certification of Final Grades (or equivalent) if the Form 138 is being held; this should suffice for placement to the next level within the same school while you regularize payment.
Propose a promissory note with clear dates and avoid vague “pay when able” language.

If you’re transferring to another school

Enrol first at the receiving school using whatever provisional documents it accepts (PSA birth certificate, prior report card copy, certification).
Ask the receiving school registrar to officially request Form 137 from the prior school.
If the prior school declines, write the Division Office (attach the receiving school’s request and proof of enrolment) and ask for assistance.
Keep communications polite and documented; escalate in writing with timelines.

If you believe the withholding is unlawful or abusive

Write a formal demand (see template below).
Elevate to DepEd’s Division or Regional Office with copies of emails/letters.
Consider consumer-protection or small claims routes for fee disputes (e.g., contested charges), but remember: debt issues are with the parent/guardian, not the learner’s right to continue schooling.

Special situations & FAQs

Q: Our child needs Form 138 for a scholarship deadline, but we still owe fees. A: Request a Registrar’s Certification of Final Grades/Ranking with a school dry seal. Most scholarship bodies accept such certifications pending the formal card.

Q: The school says “no card, no enrolment” next year. A: Ask if a Certification of Learner’s Outcomes will suffice temporarily while a payment plan is in place. Put the plan in writing and sign both ways.

Q: We already paid, but the school still hasn’t released the card. A: Send proof of payment and request release within a fixed date. If ignored, escalate to the school head, then the Division Office.

Q: Can the school charge for copies/certifications? A: Reasonable documentary fees are commonly permitted; they should be published and non-excessive.

Q: Can the school “erase” grades for non-payment? A: No. Grades reflect academic performance. Non-payment is a separate civil matter; it should not alter the accuracy of academic records.

Templates you can adapt

1) Request for Certification / Release (to the Registrar)

Subject: Request for Certification of Final Grades / Release of Records Dear Registrar,

I am the parent/guardian of [Learner’s Name, LRN, Grade/Section, SY]. We acknowledge an outstanding balance of ₱[amount] and are arranging [payment plan or expected settlement date].

To ensure continuity of education, we respectfully request:

Certification of Final Grades (or equivalent) for SY [year], and

If applicable, school-to-school transmission of Form 137 upon request of the receiving school.

We appreciate your assistance and remain committed to settling our account.

Sincerely, [Name] [Contact details]

2) Promissory Note (simple form)

I, [Name], parent/guardian of [Learner’s Name], acknowledge the outstanding balance of ₱[amount] to [School] for SY [year]. I undertake to pay ₱[schedule and dates] until fully settled.

Signed this [date] at [city].

[Signature over printed name]

3) Escalation to the Division Office (if Form 137 is blocked)

Subject: Assistance on Release of Form 137 – [Learner’s Name, LRN] Dear Schools Division Superintendent,

The receiving school [name] requested Form 137 from [prior school] on [date]. Despite follow-ups, release has not occurred, allegedly due to unpaid tuition.

We respectfully request your intervention so that the official transfer credential can be transmitted school-to-school without delay. Supporting documents are attached.

Sincerely, [Name] [Contact details]

For school administrators: policy tips that balance compliance and collection

Separate academic records from collections. Provide certifications that allow the learner to progress while pursuing the debt from the contracting party.
Maintain clear, pre-disclosed fee policies in the Student/Parent Handbook and enrolment contract; avoid ambiguous terms.
Adopt confidential collection channels; prohibit public shaming.
Use documented payment plans; track performance and communicate early.
Coordinate registrar processes so Form 137 requests are prioritized and not entangled with billing.

Bottom line

Form 137 (Permanent Record) is an official inter-school credential that should not be withheld due to unpaid accounts.
Form 138 (Report Card) is sometimes withheld by private schools as a collection measure, but regulators increasingly expect non-disruptive alternatives (certifications, school-to-school transmissions) to protect the learner’s educational continuity.
Debt collection should be directed at the parent/guardian, not the child’s access to schooling.
When in doubt, document requests, propose reasonable payment plans, and engage the Division Office for assistance.

If you need, I can adapt the templates above to your specific situation (names, dates, amounts, and a proposed payment schedule) and draft a concise escalation letter tailored to your Division Office.