here’s a practical, everything-you-should-know explainer on Graduation Eligibility for Students With Unpaid Tuition (Philippines)—what schools may and may not do, how “graduation” differs from “clearance,” and your options if you still have a balance. this is general information, not legal advice.

1) “Graduation” vs. “clearance”: two different gates

Academic completion (eligibility to graduate). You become academically eligible when you’ve met all curricular requirements (subjects passed, units completed, residency rules, theses/practicum, grade submission) and any non-academic graduation requirements (e.g., NSTP, PE, exit exam if required by the school, clearance from conduct/discipline cases).
Administrative/financial clearance. Separately, schools require clearance (no unpaid tuition/fees, settled library/dorm/disciplinary accounts, returned equipment/ID, etc.) before they release credentials (diploma, official transcript, certificate of graduation, honorable dismissal) and before they typically list you as “cleared to march” in the program.

Key idea: you can be academically done but not cleared. Schools can acknowledge that you finished the coursework yet withhold documents and graduation rites privileges until you settle or formalize your balance (e.g., promissory note).

2) What schools cannot do vs. what they can do when you owe

Generally not allowed

Blocking you from taking class or final exams solely because you haven’t paid, where current “no-permit, no-exam” protections apply (higher ed and many basic-ed contexts).
Imposing punitive academic sanctions tied to nonpayment (e.g., forced failing grade, withholding of final grades as grades, changing grades because of unpaid balance).

The policy line nationwide has moved toward letting students complete academic assessments even when tuition is outstanding, subject to later collection. (Exact mechanics vary by level and school; see §7 for strategy.)

Commonly allowed

Withholding of credentials: diploma, official transcript (OTR/TOR), certificate of graduation, honorable dismissal, good moral certificate, certified true copies—until financial obligations are settled or covered by an approved arrangement (e.g., promissory note).
Requiring financial clearance to be included in the official list of graduates, to join graduation/commencement rites, or to be called onstage.
Blocking enrollment in the next term (if you have a balance) and placing holds on student accounts.
Charging lawful penalties/interest stated in the enrollment contract or handbook (but not usurious, abusive, or hidden).

3) Commencement rites (“to march”) vs. being a graduate

Being a graduate (substantive status) hinges on academic completion. The school recognizes completion as of the effectivity date (semester/trimester end), but won’t issue the physical proofs while you’re uncleared.
Marching/being in the program is ceremonial and governed by school policy. Most schools require clearance (or an approved promissory note) before listing you among “candidates for graduation” in the program and allowing you to join the ceremony.
Diploma on stage: even if you’re allowed to march on a PN, the actual diploma may still be withheld until payment.

4) Public vs. private; basic ed vs. higher ed

Public SUCs/LUCs (state/local universities & colleges). Tuition and many fees in undergraduate programs are covered by the free higher-ed law; balances usually relate to dorms, library, equipment, thesis charges, penalties. SUCs/LUCs still require clearance and can withhold credentials for unpaid non-tuition obligations.
Private HEIs. Can withhold credentials and bar ceremony participation for unpaid accounts, but should allow completion of academic assessments under current “no-permit, no-exam” protections. They typically offer promissory notes or staged payments for graduating students.
Basic education (K–12). Public schools cannot charge tuition; graduation rites are non-collection events. Private basic-ed schools may withhold Form 137/138, diploma, good moral for unpaid tuition/fees, but should avoid academic penalties; many allow exams upon promissory note.

5) What happens to board exam eligibility, job applications, and visas

Licensure exams (PRC). The PRC requires a TOR and Certificate of Graduation (or equivalent). If your school withholds these, you cannot register for boards until you obtain them. Some schools issue a certification for boards upon an approved PN—this is policy-dependent, not a right.
Employment/overseas applications. Employers and embassies often request TOR/diploma; if withheld, your start date or visa may be delayed unless your school agrees to issue a temporary certification.

6) Lawful ways to finish and graduate if you still have a balance

Promissory note (PN).
- A written, dated plan that specifies amounts and due dates, signed by you (and often a co-maker/parent).
- Often a condition to: (a) sit for final exams, (b) be included in the graduation program, or (c) secure temporary certifications (but the diploma/TOR is released only upon full payment).
Partial settlement + holdback.
- Pay minimums (e.g., current term’s tuition) to unlock exams and listing; remaining balance scheduled post-graduation.
Scholarship or company undertaking.
- If a sponsor agrees in writing to pay on a specific date, the school may clear you for graduation subject to that undertaking.
Installment with PDCs/e-debits.
- Schools may require post-dated checks or automatic debits. Make sure you understand fees and default clauses.
Conversion to student loan.
- Some schools or partner lenders replace the open balance with a loan account so the school can release credentials. Read the APR and collection/penalty terms carefully.

7) Student playbook (if you’re academically done but have arrears)

Get your ledger. Ask the registrar/cashier for a detailed statement (what, when, why). Errors happen—fix them now.
Lock in academic completion. Confirm all grades are encoded and no academic holds remain. Academic completion should not be withheld because of debt.
Request a PN early (before finals week). Bring a realistic schedule, show income/proof, and propose dates that align with expected funds (13th-month pay, loan disbursement, etc.).
Negotiate what the PN unlocks. Aim for: (a) exams, (b) listing in the program, and (c) a board-exam/ employment certification. Expect the diploma/TOR to stay on hold until full payment.
Avoid multiple PNs across departments. Consolidate library/dorm/college fees into one agreement if possible.
Mind your data/privacy. Schools may contact you/parents/guarantors about payment, but they should not harass or disclose your debt to unrelated third parties. Keep communications civil and in writing.

8) School/registrar playbook (risk-balanced compliance)

Let students complete assessments even with arrears (align with “no-permit, no-exam” policy). Use PNS and holds instead of academic penalties.
Publish a clear clearance matrix: list which credentials are withheld for which obligations, and what unlocks them (payment vs. PN vs. sponsor letter).
Graduation listing policy. Define whether a PN is enough for inclusion in the program and ceremony participation. Announce cut-off dates early.
Issue narrow certifications where justified (e.g., “Completed all academic requirements; credentials to be released upon settlement of account”), to help graduates secure jobs/boards while protecting the school’s right to collect.
Collections = professional. No public shaming, no posting of debtor lists, no threats. Keep to the enrollment contract and the student handbook.

9) What if the school bars your exams because of unpaid fees?

Raise the policy calmly (cite the no-permit, no-exam rule in force for your level) and offer a PN.
Escalate to the dean/registrar if a frontline office insists on a permit.
Document (email recap) what was denied and when.
As a last resort, file a complaint with the supervising agency (DepEd for basic ed, CHED for higher ed) and request immediate facilitation so you can take the exam on time. Keep it factual and attach your PN request.

10) FAQs

Q: Can a school stop me from marching if I still have a balance? A: Yes, typically. Participation in graduation rites is ceremonial and often contingent on clearance or an approved PN. Academic completion alone doesn’t guarantee ceremony privileges.

Q: Can they hold my diploma and TOR? A: Yes, until you’re financially cleared. Many schools will release temporary certifications on a PN; the diploma/TOR come after full payment.

Q: I need my TOR for a board exam. Any workaround? A: Ask for a for-PRC-only certification or sealed records subject to PN. This is policy-dependent—negotiate early.

Q: I’m in a public university with “free tuition.” Why am I blocked? A: You may owe non-tuition charges (dorm/library/equipment/fines). SUCs/LUCs can withhold credentials for those.

Q: Can the school change my grades or fail me because I didn’t pay? A: No. Grades reflect academic performance, not debt status. The school may withhold release of the grade records or credentials, but not alter grades due to nonpayment.

11) One-page negotiation template (you can adapt)

Subject: Promissory Note Request – Clearance for Graduation Dear Registrar/Cashier, I have completed all academic requirements for [Program] this [term/year]. My current balance is ₱[amount] (ledger attached). I respectfully request approval of a Promissory Note with the following schedule: ₱[amount] on [date], ₱[amount] on [date], and ₱[amount] on [date]. In exchange, may I be (a) allowed to take all final assessments, (b) listed as a candidate for graduation, and (c) issued a certification for PRC/employment pending full settlement? I commit to the schedule and can provide a co-maker if required. Thank you for your consideration.

Bottom line

Finishing your courses and joining graduation are not the same thing. Schools usually let you complete academics even with arrears, but they may withhold credentials (and ceremony participation) until you’re financially cleared or on an approved promissory note.
If you need the board-exam or job papers, negotiate early for a PN and a narrow certification while you complete payment. Keep everything in writing, stay professional, and meet the dates you promise.

if you tell me your school type (private/SUC), program, exact balance, and target timeline (graduation date or PRC filing), i can draft a custom promissory note, a registrar request email, and a checklist of documents to ask for so you don’t miss your board or job start.