In the Philippines, while private educational institutions enjoy academic freedom and a level of financial autonomy, they are not exempt from the regulatory oversight of the state. The Department of Education (DepEd) for basic education and the Commission on Higher Education (CHED) for tertiary education set strict guidelines on how fees are determined, consulted upon, and collected.

When a school collects fees without proper authorization or fails to follow the prescribed "70-20-10" rule, it may be held administratively liable.

1. Legal Basis for Fee Regulation

The primary laws and regulations governing fee collections in private schools include:

Republic Act No. 6728 (GATSFEE Law): As amended by RA 8545, this law mandates that any increase in tuition fees must be allocated as follows:
- 70% for the payment of salaries, wages, allowances, and other benefits of teaching and non-teaching personnel.
- 20% for the improvement or modernization of buildings, equipment, and libraries.
- 10% for the return on investment (ROI) for the school owners.
DepEd Order No. 88, s. 2010: Also known as the Revised Manual of Regulations for Private Schools in Basic Education, this outlines the requirements for tuition fee increases and the necessity of consultation.
CHED Memorandum Order (CMO) No. 3, s. 2012: Provides the guidelines for tuition and other school fee (TOSF) increases in Higher Education Institutions (HEIs).

2. Common Grounds for a Complaint

A complaint may be filed if a private school engages in any of the following:

Lack of Consultation: Schools must conduct a formal consultation with the Parents-Teachers Association (PTA), Faculty Association, and/or Student Councils before implementing a tuition increase.
Unauthorized "Other School Fees": Miscellaneous fees that were not approved by the DepEd or CHED Regional Office.
Hidden Charges: Fees labeled as "donations" or "voluntary contributions" that are, in practice, mandatory for enrollment or graduation.
Excessive Increases: Increases that exceed the inflation rate without significant justification or those that violate the 70-20-10 allocation rule.
Charging for Services Not Rendered: Continuing to collect laboratory, library, or athletic fees during periods of pure distance learning where such facilities are inaccessible.

3. The Step-by-Step Filing Process

Step 1: Exhaustion of Administrative Remedies

Before escalating the matter to the government, the complainant (parent or student) should attempt to resolve the issue internally.

Review the Student Handbook for grievance procedures.
Write a Formal Letter of Inquiry to the School Principal or the Board of Trustees requesting a breakdown of the fees and proof of DepEd/CHED approval.

Step 2: Gathering Evidence

If the internal response is unsatisfactory, compile the following:

Official Receipts (ORs): Showing the breakdown of paid fees.
School Circulars: Notices regarding fee increases or enrollment assessments.
Minutes of Consultation: If a consultation was held, any records showing that the majority of stakeholders dissented or that the meeting was a sham.
Comparison Data: Previous year’s assessment versus the current year.

Step 3: Filing the Formal Complaint

The complaint should be filed with the Regional Office of the DepEd or CHED that has jurisdiction over the school’s location.

Draft a Verified Complaint: This is a written statement under oath (notarized) detailing the violations. It must include the names of the parties, the specific acts complained of, and the relief sought.
Submit to the Quality Assurance Division (QAD): For DepEd, the QAD typically handles the monitoring and regulation of private schools.
Mediation/Fact-Finding: The Regional Office may call for a conference between the school and the complainants to reach an amicable settlement.

4. Possible Penalties for Schools

If the DepEd or CHED finds the school in violation of fee regulations, the following sanctions may be imposed:

Refunds: The school may be ordered to refund the excess or illegally collected amounts to the students/parents.
Suspension of Permit: The school’s permit to operate specific programs may be suspended.
Revocation of Recognition: In severe cases of recidivism or fraud, the school may lose its official government recognition.
Disqualification from Subsidies: The school may be barred from participating in the Educational Service Contracting (ESC) or the Senior High School Voucher Program.

5. Important Considerations

No Withholding of Records: Under the "No Permit, No Exam" Prohibition Act (and related DepEd/CHED orders), schools are generally restricted from withholding a student's grades or permits solely due to unpaid fees, though they may withhold final credentials (like diplomas or certificates of transfer) until financial obligations are cleared. However, this does not apply if the fees being collected are proven to be illegal.
Anonymous Complaints: While the Regional Offices prefer verified complaints, they may also act on "Information" or "Reports" to trigger a spot inspection or audit of the school’s financial records.