Can Private Schools Withhold Student Report Cards for Unpaid Tuition in the Philippines? A comprehensive legal briefing (June 2025)
1 | Context and Core Tension
Two rights collide in this question:
- The learner’s constitutional right to quality, accessible basic education (Art XIV §1, 1987 Constitution).
- The private school’s proprietary right to be paid for the educational service it contracts to deliver (Arts 1159 & 1305, Civil Code).
When parents default on tuition, schools seek leverage; the most visible is withholding academic records—particularly the Form 138 “Report Card” used to enrol the child in the next grade or transfer to another institution.
2 | Statutory & Regulatory Framework
| Level | Primary issuances | Key rule on record-withholding |
|---|---|---|
| Basic Education | Revised Manual of Regulations for Private Schools in Basic Education (2010); DepEd Order (DO) No. 88-2010; DO No. 3-2018 (K-12 records policy) | A school may withhold transfer credentials (Form 137) when obligations remain but must: 1) release a certified true copy of grades on request, and 2) release the original once the parent signs a reasonable promissory note or settlement plan. The child cannot be barred from graduation or enrolment in the same school because of arrears. |
| Higher Education | Revised Implementing Rules of RA 7722; CHED Memorandum Order (CMO) No. 25-2013 (Student Records); CMO No. 8-2010 (Manual of Regulations for Private HEIs) | Institutions may retain the Transcript of Records, transfer credentials, or diploma until accounts are settled. However, they must issue a certification of grades for licensure examinations or transfer once the student signs a promissory note; failure to do so is an administrative offense. |
| Technical-Vocational | TESDA Circular No. 13-2017 (Learner Records) | Mirrors CHED rules: certification of competencies must be released upon a signed undertaking, even if tuition is outstanding. |
Note on Form 138 vs. Form 137 Form 138 (Report Card) shows the current year’s grades and is required for promotion; Form 137 is the permanent record needed only when transferring schools. DepEd’s policy focus is on Form 137. In practice, most private elementary & secondary schools treat the report card as leverage, but DepEd reminds them the learner remains officially “promoted” even if the physical card is held.
3 | Jurisprudence
| Case | G.R.-No. / Date | Doctrine |
|---|---|---|
| St. Louis College of Tuguegarao v. Court of Appeals | G.R. 114002, 27 Jul 1995 | A private school may refuse release of transfer credentials until unpaid tuition is paid because “it would be unjust enrichment” to compel release with no guaranty of payment. |
| University of Pangasinan v. Mañara | G.R. 165212, 11 Apr 2011 | Schools may demand settlement or a promissory note before releasing Transcript of Records, but must still allow the student to graduate and participate in commencement exercises. |
| Philippine School of Business Administration v. Maunlad Homes, Inc. | G.R. 74322, 23 Jun 1993 | The Court characterized tuition as a civil obligation; the proper remedy for a school is to sue for collection, not to impede a fundamental right. |
Take-away: the Supreme Court consistently balances the contract right with the paramount right to education by requiring schools to offer a promissory note option or provisional certificate.
4 | DepEd Enforcement Practice
Although the regulations allow temporary withholding, DepEd’s Regional Directors frequently issue compliance orders compelling schools to:
- Release a certified copy of grades within 5 working days.
- Accept a written payment plan if the parent proposes one in good faith.
- Facilitate transfer when parents enter the Educational Service Contracting (ESC) or Senior High School Voucher scheme—because tuition is partly government-subsidised, withholding is disallowed.
Schools that ignore a DepEd directive risk suspension or revocation of permit under DO No. 88-2010 §17.
5 | Implications for Stakeholders
For School Administrators
- Document enrolment contracts, statements of account, and all collection efforts.
- Offer clear, written promissory-note templates; require a realistic payment schedule.
- Release certified grades unconditionally; keep an internal hold on originals if needed.
- Coordinate with PTA officers to mediate disputes and avoid escalation to DepEd.
For Parents / Guardians
- Initiate dialogue early; submit a promissory note rather than await a hold order.
- Know that a child cannot be barred from taking final exams, graduating, or moving up within the same school solely due to arrears.
- File a complaint with the DepEd Regional Office if a school refuses to issue even a certified copy of grades after a payment proposal.
For Learners (College & TVET)
- Request a Certification of Grades (a CHED-recognized substitute for the TOR) citing CMO 25-2013 if your account is unsettled but you need to take a board exam or apply for work.
- Expect the actual TOR or diploma to remain on hold until you or your guarantor pay—or until a court compels release.
6 | Practical Checklist
| Scenario | Report Card (Form 138) | Permanent Record (Form 137 / TOR) |
|---|---|---|
| Continuing in the same school | Must be issued on schedule. School may annotate “For clearance” but cannot withhold. | N/A |
| Transfer to another K-12 school | The receiving school may enrol the child on the strength of a certified copy; original can follow after settlement. | Can be withheld but only until a reasonable payment plan or partial settlement is accepted. |
| Graduating Senior HS / College | Participation in graduation rites cannot be denied. | Diploma / TOR may be held, but a certification of completion/grades must be given upon a promissory note. |
7 | Unresolved / Evolving Issues (2025 Outlook)
- Digital Records: DepEd’s Learner Information System now hosts electronic Form 137—raising questions on whether “withholding” is even feasible once digital access is standardised in SY 2025-2026.
- Consumer-credit regulation: Bills filed in the 19ᵗʰ Congress propose treating tuition defaults like any other consumer debt—subject to credit-information reporting rather than academic-record holds.
- Data-Privacy tensions: Schools must ensure that “account-due” annotations on records do not violate the Data Privacy Act of 2012 by revealing financial status to third parties.
8 | Conclusion
Yes—but only conditionally. Philippine private schools may lawfully retain original report cards and other credentials to secure unpaid tuition, provided they:
- Do not impede the learner’s right to finish the school year or graduate;
- Provide certified true copies or provisional certifications when the student needs them; and
- Accept a reasonable promissory note or payment scheme in lieu of immediate cash.
Refusal to follow these guardrails exposes the school to DepEd or CHED sanctions—and, potentially, civil or administrative liability for violating the constitutional right to education.
In practice, the most prudent route for both parties is dialogue and documented compromise, not the academic equivalent of a hostage situation.
Prepared for informational purposes; not a substitute for formal legal advice. For case-specific concerns, consult counsel or the appropriate education agency’s legal division.