In the Philippine educational landscape, financial constraints often lead to "promissory note culture." While the "No Permit, No Exam" Prohibition Act (Republic Act No. 11984) now mandates that schools allow students with unsettled financial obligations to take examinations, it does not extinguish the debt. A well-drafted Promissory Note (PN) remains the primary legal instrument used to formalize these obligations, protecting both the institution’s right to collect and the student’s right to continue their education.

I. Nature and Legal Basis

Under Philippine law, a Promissory Note is a legal document where one party (the Maker/Debtor) promises in writing to pay a determinate sum of money to another (the Payee/Creditor) at a specified time or on demand.

In the context of tuition fees, this falls under Obligations and Contracts (Civil Code of the Philippines). It serves as an admission of indebtedness, which simplifies the collection process should the matter eventually reach small claims court.

II. Essential Elements of the Draft

To be legally robust and enforceable, a tuition-related PN should contain the following components:

Identity of the Parties: Clearly state the full name of the student and, if the student is a minor, the name of the parent or guardian (who will act as the co-maker).
The Principal Amount: The exact balance of the unpaid tuition and miscellaneous fees, written in both words and figures to avoid ambiguity.
The Maturity Date: A specific date or a clear installment schedule (e.g., "payable in three equal installments every 15th of the month").
Interest and Penalties: If the school charges late fees, these must be explicitly stipulated in writing. Under Philippine law, interests must be "equitable" and not "usurious" or "iniquitous."
The Undertaking: Clear language stating the unconditional promise to pay (e.g., "I promise to pay to the order of [School Name]...").
Signatures: The signature of the Maker and, ideally, a witness. For schools, having the document notarized converts it from a private document to a public document, making it easier to present as evidence in court.

III. Key Considerations under RA 11984

With the enactment of the "No Permit, No Exam" Prohibition Act, there are specific nuances to keep in mind:

Mandatory Admission to Exams: Schools cannot prevent a student from taking exams due to unpaid fees, provided a PN is executed.
Certificates of Good Moral Character: While schools must allow exams, they generally retain the right to withhold the release of official transcripts, diplomas, or certificates until the financial obligations are fully settled.
Socialized Terms: For students facing extreme poverty (as certified by the DSWD), schools are encouraged to provide flexible payment terms within the PN.

IV. Standard Template Structure

PROMISSORY NOTE FOR VALUE RECEIVED, I, [Name of Parent/Guardian], of legal age, Filipino, and resident of [Address], (hereinafter referred to as the "MAKER"), acknowledge my indebtedness to [Name of School] (the "SCHOOL") in the principal sum of [Amount in Words] (PHP 00,000.00), representing the unpaid tuition and school fees of my child/ward, [Student Name], for the [Semester/Year]. I hereby promise to pay the said amount in the following manner:

[Installment Date 1]: PHP [Amount]

[Installment Date 2]: PHP [Amount]

Default: Failure to pay any installment when due shall make the entire remaining balance immediately demandable. Release of Records: I acknowledge that the School reserves the right to withhold official transcripts, diplomas, and other credentials until this obligation is paid in full. [Signature over Printed Name of Maker] Date: _______________

V. Legal Remedies for Non-Compliance

If the Maker fails to honor the PN, the school has several recourses:

Demand Letter: A formal written demand is usually a prerequisite before filing a court case.
Small Claims Court: If the amount does not exceed PHP 1,000,000.00, the school can file a case in Small Claims Court. This is an inexpensive, expedited process where lawyers are not allowed to represent parties during the hearing.
Withholding of Credentials: As upheld by various DepEd and CHED memoranda, the school can refuse to issue final transfer credentials until the debt is cleared.