I see this has gone unanswered for 3 days, and while I can't speak to the specific policies of catholic schools, I can tell you that the private schools I am familiar with (at both the high school and college level) do indeed withhold transcipts and diplomas if the bill isn't paid in full. I would bet that most catholic schools have a similar policy, although it's possible that they may have different policies in different diocese. Why not just ask the school what their policy is?
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