Prohibited imposition of interest
- DECS Order No. 63, s. 1999 bars private schools from exacting interest on unpaid tuition fees.
- Interest on unpaid tuition fees is allowed only when it is expressly stipulated in the enrollment contract.
- Any interest charge for unpaid tuition fees that lacks an express contractual stipulation violates DECS Order No. 63, s. 1999.
Policy basis and purpose
- The Order declares that the exaction of interest on unpaid tuition fees by private schools is contrary to public policy.
- The Order is issued to align with the state policy to give priority to education, protect and promote the right to quality education at all levels, and make education accessible to all.
- DECS Order No. 63, s. 1999 is promulgated for strict compliance by private schools.
Contract requirement for any interest
- A private school may exact interest on unpaid tuition only if the enrollment contract expressly stipulates such interest.
- The contractual stipulation required is tied to the enrollment contract governing the student’s tuition obligation.
- Compliance depends on the presence of an express interest clause in the enrollment contract covering unpaid tuition.