Republic of the Philippines

OFFICE OF THE PRESIDENT

COMMISSION ON HIGHER EDUCATION

CHED MEMORANDUM ORDER (CMO)

No. 02
Series of 2010

SUBJECT: APPEAL TO HEls FOR FLEXIBILITY IN THE IMPLEMENTATION OF THE

"NO PERMIT, NO EXAMINATION POLICY" OR ANY SUCH POLICY
THAT PROHIBITS STUDENTS FROM TAKING THEIR PERIODIC OR
FINAL EXAMINATIONS DUE TO UNPAID TUITION AND OTHER
SCHOOL FEES

In accordance with the pertinent provisions of the 1987 Philippine Constitution, the
Republic Act (R.A.) No. 7722, otherwise known as the "Higher Education Act of 1994," and
for the purpose of ensuring the accessibility and affordability of quality higher
education, and in view of the unabated economic crisis brought about by
circumstances worldwide as` well as recent calamities that the country has faced in the
past year, this Memorandum Order is hereby issued for the guidance and
compliance of concerned higher education institutions (HEls).

Section 1. Rationale and Background

The recent economic recession has greatly affected most of the countries in the
world, including the Philippines. As prices in the world market rise, the cost of basic
commodities and services in the country becomes prohibitive. Education is one of the
basic services that are often affected in times of economic recession. Filipino families
value education in view of its role in poverty alleviation and total human capital
formation. The goVernment likewise recognizes that this is vital to the attainment of
the nation's development goals. Consequently, the unabated increases in tuition and
other school fees has unduly burdened affected families and students enrolled in HEls
across the nation.

Section 2. Declaration of Policy

Article XIV, Section 1 of the 1987 Philippine Constitution provides that "The State
shall protect and promote the right of all citizens to quality education at all levels and
shall take appropriate steps to make such education accessible to all."

Higher Education Development Center BUilding, C.P. Garcia Ave., UP Campus, Diliman, Queion City, Philippines 1
Web Site: www.ched.gov.ph Tel. Nos. 441-1177, 385-4391, 441-1169, 441-1149, 441-1170, 441-1216, 392-5296
Pursuant to this, the State shall ensure quality higher education in the country, and
shall, through this Commission exercise reasonable regulation of public and private
higher education institutions to ensure delivery of quality and affordable higher
education to Filipino students.

Section 3. Specific Guidelines

In view of the foregoing premises, all concerned HEls are hereby requested to extend all
possible assistance to students with outstanding balances in tuition and other fees due to
financial difficulties. HEls shall extend utmost flexibility in the implementation of the "No
permit, no examination" Policy they are adopting, if any, and any such policy/ies that
prohibit/s students from taking their periodic or final examination due to unpaid school
accounts.

As such, HEls shall allow students with delinquent accounts to take school
examinations. Further, affected students may undertake, subject to the discretion of the
school, the execution of a Promisory Note, guaranteed by their parents, and subject
further to the right of the school concerned to withhold the release or issuance of
their school clearance prior to their graduation until all prior accountabilities are
fully settled.

CHED Regional Offices are hereby directed to inform HEls within their jurisdiction and
strictly monitor compliance thereof.

For guidance and immediate compliance of all concerned.

Issued this 22nd day of January 2010 , Quezon City, Philippines.

EMMANUEL Y. ANGELES
Chairman