The plaintiff was a law student who transferred from Arellano University to Abad Santos University. Arellano University refused to provide the plaintiff's transcript of records until he paid back the last semester's scholarship grant, citing a waiver where he agreed to not transfer without refunding the scholarships. The issue was whether this waiver was valid. The court ruled the waiver was not valid, citing a 1949 memorandum that scholarships should not be charged back when a student decides to transfer. The memorandum states scholarships recognize merit, not keep students at a school. Requiring refunds for transfers is not a good custom and not practiced by leading universities.
The plaintiff was a law student who transferred from Arellano University to Abad Santos University. Arellano University refused to provide the plaintiff's transcript of records until he paid back the last semester's scholarship grant, citing a waiver where he agreed to not transfer without refunding the scholarships. The issue was whether this waiver was valid. The court ruled the waiver was not valid, citing a 1949 memorandum that scholarships should not be charged back when a student decides to transfer. The memorandum states scholarships recognize merit, not keep students at a school. Requiring refunds for transfers is not a good custom and not practiced by leading universities.
The plaintiff was a law student who transferred from Arellano University to Abad Santos University. Arellano University refused to provide the plaintiff's transcript of records until he paid back the last semester's scholarship grant, citing a waiver where he agreed to not transfer without refunding the scholarships. The issue was whether this waiver was valid. The court ruled the waiver was not valid, citing a 1949 memorandum that scholarships should not be charged back when a student decides to transfer. The memorandum states scholarships recognize merit, not keep students at a school. Requiring refunds for transfers is not a good custom and not practiced by leading universities.
Facts: Under the Director of Private Schools Memorandum No. 38 (1949), when students are given full or partial scholarships, it is understood that such scholarships are merited and earned. The amount in tuition and other fees corresponding to these scholarships should not be subsequently charged to the recipient students when they decide to quit school or to transfer to another institution. Scholarships should not be offered merely to attract and keep students in a school. The plantiff-law student transfer from Arellano University to Abad Santos University where he finished his law degree. Arellano University refused to give the Transcript of Record of the plaintiff until after he had paid back the last semestral scholarship grant given by the said university under the waiver that he waived his right to transfer to another school without refunding to the latter the equivalent of his scholarships in cash.
Issue: Is the waiver valid?
Ruling: No.
Legal Basis: The policy enunciated in Memorandum No. 38, s. 1949 is sound policy. Scholarship are awarded in recognition of merit not to keep outstanding students in school to bolster its prestige. Moreover the practice of awarding scholarships to attract students and keep them in school is not good customs nor has it received some kind of social and practical confirmation except in some private institutions as in Arellano University. University of the Philippines and some leading university in the Uinted States after which our educational practices or policies are patterned does not practice that.