Continuing Studies with an Unpaid Balance in a Previous School (Philippine Context)

This is general legal information for the Philippines, written in plain English. It isn’t a substitute for tailored advice from a lawyer or the relevant education regulator. School and agency rules change; always check your current school’s manual and the latest issuances of DepEd, CHED, and TESDA.

The short version (what most people need to know)

Basic Education (K–12, under DepEd): Your child’s right to education is strongly protected. Schools are not supposed to block continuing enrollment simply because of unpaid balances. Receiving schools (especially public schools) typically accept provisional enrollment while records are fetched. The previous school should transmit official records school-to-school; parents don’t have to hand-carry originals to break a stalemate.
College/University (under CHED): Higher education institutions (HEIs) may withhold diplomas, transfer credentials, and official transcripts until debts are settled. Many HEIs still allow conditional admission for one term while you arrange your TOR/Honorable Dismissal. Whether they do is a school policy decision.
TVET/Technical–Vocational (under TESDA): Training centers may hold center-issued certificates until accounts are cleared. TESDA National Certificates (NCs) and assessments follow TESDA’s own rules; scheduling often requires proof of completion or equivalent.
If a school refuses to release or transmit records: For K–12, escalate to the DepEd Schools Division Office. For college, ask the CHED Regional Office for guidance. For TVET, go to TESDA Provincial/Regional Office.
Most practical path: (1) ask the new school for conditional enrollment and for them to request records directly; (2) negotiate a written payment plan with the old school; (3) request certified copies or an informative copy of grades to be sent directly to the new registrar; (4) escalate only if needed.

The legal and regulatory landscape

1) Agencies and coverage

DepEd regulates basic education (K–12, public and private).
CHED regulates higher education (colleges/universities).
TESDA regulates technical–vocational programs and national competency assessments.

2) Rights vs. contractual obligations

Right to basic education weighs heavily in favor of allowing a learner to continue studying even when a private debt exists to a previous basic-ed school.
Private school debts are civil obligations. A school may use lawful means (e.g., withhold non-essential credentials, sue for collection) but cannot extinguish the learner’s basic right to enroll elsewhere.
In higher ed, the balance tilts more toward contract and school policy: HEIs can require clearances before releasing official scholastic credentials.

Release and transfer of school records

A. Basic education (K–12; DepEd)

Core records:
- Form 137 (permanent record) is school-to-school; it’s not meant to be hand-carried by the parent/learner.
- Form 138 (report card) is routinely given to learners/parents each term.
Withholding records due to unpaid balances: DepEd policy has long discouraged or prohibited withholding of essential transfer records that would prevent enrollment in another school, especially for public school admission.
Typical practice when there’s an unpaid balance:
- The receiving school enrolls the learner provisionally and requests Form 137 from the previous school directly.
- The previous school may note the outstanding account and continue collection, but is expected to transmit records upon official request.
- If a previous school refuses or delays, parents may seek help from the Schools Division Office (or the Regional Office).

B. Higher education (colleges/universities; CHED)

Core records: Transcript of Records (TOR), Transfer Credentials/Honorable Dismissal, Certificate of Graduation, diploma.
Withholding due to unpaid balances: HEIs commonly withhold TOR and transfer credentials until the account is cleared. This is a contractual remedy under the school’s handbook/enrollment agreement.
Continuing studies despite an unpaid balance:
- Many HEIs offer conditional or provisional enrollment (e.g., one semester) while you work on your TOR/transfer credentials.
- Some registrars accept Certified True Copies, grade certifications, or informative copies of grades sent directly by the previous school pending full clearance.
- Graduation or licensure exam applications usually require an official TOR; unresolved accounts that block release of a TOR will delay graduation/licensure.

C. TVET (TESDA)

Center-issued documents (e.g., training certificates) can be withheld for unpaid balances.
TESDA assessments/NCs are governed by TESDA rules; proof of competency/training is often required to book assessments. If a center holds your certificate, coordinate with TESDA on acceptable substitutes (e.g., enrollment records, training logs) and what’s needed to proceed.

“No Permit, No Exam” and related policies

K–12 (DepEd): “No permit, no exam” practices are generally disallowed in basic education. Schools are expected to offer humane, non-exclusionary collection mechanisms.
HEIs (CHED): Schools have greater discretion. Some allow exams with promissory notes; others require clearance before finals or before releasing official grades/transcripts. Always check the school manual.

What a previous school can lawfully hold—and what it usually cannot

Level	Commonly Withheld Until Settlement	What Should Still Happen
K–12	Diplomas, non-essential certificates, non-official copies	Official transfer records (Form 137) should be transmitted school-to-school so the learner can enroll elsewhere.
College/University	TOR, Honorable Dismissal/Transfer Credential, diploma, Certificate of Graduation	Some schools issue grade certifications or informative copies directly to the receiving registrar; conditional enrollment may be allowed at the new school.
TVET	Center-issued training certificates	Coordinate with TESDA on alternatives for assessment/NC scheduling; center may still hold its own certificate pending payment.

Data Privacy angle: You may request access to your personal data (grades, records). That right doesn’t automatically compel a school to release official credentials that its policies lawfully allow it to hold as security for debt.

Practical strategies if you still owe your previous school

Ask the new school for conditional enrollment.
- Explain that your official records are pending due to an unpaid balance.
- Offer to sign an undertaking to submit official credentials by a set date.
Negotiate a written payment plan with the previous school.
- Propose installments, with specific dates and amounts.
- Ask for staged release: e.g., grade certification now, TOR upon 50% payment, transfer credential upon full payment.
Use school-to-school transmission.
- Request that the previous school send certified copies or a Registrar’s Certification directly to the receiving registrar.
- This avoids hand-carrying and builds trust that the documents are authentic.
Escalate appropriately (only if needed).
- K–12: DepEd Schools Division Office.
- HEI: CHED Regional Office (for guidance on fair application of policies).
- TVET: TESDA Provincial/Regional Office.
- Keep everything in writing (email/letters) and attach proof (SOA, receipts, prior correspondence).
Know the civil-law backdrop.
- The school may pursue collection (e.g., demand letters, court action).
- You can seek mediation (Barangay conciliation for small disputes; court-annexed mediation in cases filed).
- Be careful about penalties/interest—they must follow your contract and general principles against unconscionable charges.

Special situations

Transferring to a public school (K–12): Public schools are expected to accept learners even when records are incomplete; the Division Office helps chase records and resolve fee issues with the prior private school.
School closure or suspended operations: If your previous school closed or refuses to cooperate, the regulatory office (DepEd/CHED/TESDA) can indicate who has custody of records (e.g., a designated repository school or the agency itself).
Licensure exams (PRC): You’ll need official school documents (TOR, COG). Unpaid balances that block release will likely delay board eligibility.
Scholarship refunds/overpayments: If the balance stems from a revoked scholarship or dropped subjects, check the refund/retention rules in the manual; timelines matter.

Templates you can copy-paste

1) Promissory Note (to the previous school)

Date: ___________

Registrar
[Name of School]
[Address]

Subject: Promissory Note for Settlement of Outstanding Account

Dear Registrar:

I acknowledge my outstanding account in the amount of ₱_________ for School Year/Semester __________. 
I respectfully propose the following payment schedule:

- ₱_________ on __________
- ₱_________ on __________
- ₱_________ on __________ (final payment)

In view of this plan, I request:
(a) A Registrar’s Certification / informative copy of grades to be sent directly to [Receiving School Registrar, email/address], and
(b) Release of my official transcript and transfer credential upon full payment.

I understand that failure to follow this schedule may result in withholding of official credentials consistent with school policy.

Respectfully,
[Name]
[Student No.]
[Contact details]

2) Conditional Enrollment Request (to the receiving school)

Date: ___________

Registrar
[Receiving School]
[Address]

Subject: Request for Conditional Enrollment Pending Release of Records

Dear Registrar:

I intend to enroll in [Program/Grade Level] this [Term/SY]. My former school, [Name], holds my official records due to an outstanding balance that I am settling under a written payment plan.

I respectfully request conditional enrollment for [term/duration], and that your office obtain directly from [Former School Registrar] a certified grade summary or temporary credentials, with my consent.

I undertake to submit my official TOR/Transfer Credential/Form 137 not later than __________.

Sincerely,
[Name]
[Contact details]

3) Authorization for School-to-School Transmission

I, [Name], authorize [Former School Registrar] to transmit my records 
(Form 137 / Grade Certification / TOR / transfer credentials, as applicable) 
directly to [Receiving School Registrar] at [email/address]. 
This authorization is solely for my enrollment/transfer.

Signed: __________  Date: __________

Frequently asked questions

Q: Can a school keep my TOR/diploma because I owe tuition? A: In college, yes—schools often withhold official credentials until settlement under school policy. In K–12, essential transfer records are expected to be transmitted to avoid blocking enrollment elsewhere.

Q: Can I enroll in a new college without my TOR? A: Many HEIs allow conditional enrollment for one term and accept certified grade summaries sent directly by your old registrar. It’s a policy choice, not a legal entitlement—ask early.

Q: Will my unpaid tuition show up on NBI or a criminal record? A: No. Tuition non-payment is a civil matter, not a criminal offense (absent fraud). A school may pursue civil collection, not criminal charges.

Q: Can a school charge interest and penalties? A: Generally yes, if clearly provided in the contract/handbook and not unconscionable. You can negotiate reductions or waivers.

Q: What if the old school refuses to send any document at all? A: For K–12, seek help from the DepEd Division Office; for college, consult the CHED Regional Office; for TVET, TESDA. Keep written proof of requests and responses.

Step-by-step checklist

Get a Statement of Account from the old school (itemized).
Draft a payment plan you can realistically meet; send a promissory note.
Ask for direct registrar-to-registrar transmission of temporary credentials.
Request conditional enrollment from the new school with a firm deadline.
Pay on schedule; keep receipts and email confirmations.
If blocked or ignored, escalate (DepEd/CHED/TESDA) with documents.
Upon full payment, request official release of TOR/transfer credential/diploma and check for completeness (all terms, seals, signatures).

Key takeaways

In basic education, the system aims to protect continuity of learning despite private debts.
In higher education, the release of official credentials normally follows clearance; plan for conditional enrollment or staged document release while you pay.
Keep everything in writing, be reasonable in proposals, and escalate only if cooperation fails.

If you want, I can adapt the templates to your exact situation (grade level or degree program, amounts, and deadlines) and draft the emails for you.