Client Situation: Client is eligible for post-completion Optional Practical Training (OPT). However, the college will not issue her the I-20 showing OPT eligibility because she still owes a portion of her tuition payments. Since you must file for the OPT within 60 days of completion of your program, the client will lose her ability to secure OPT on July 15th and will need to depart the U.S.
SEVIS Policy: An SEVP-certified school is not required to request OPT for any student. Although the payment of fees to the school should not directly be linked by a school policy to SEVIS status or F-1 benefits, it is a common and acceptable practice for institutions to keep students from graduating who owe money to the institution. If a student is not completing the program according to the school, that student cannot apply for post-completion OPT. The school must have in place a general statement—that applies to all students—of how it interprets and applies its policies in situations where a student has not complied with their financial obligation.
That being said, the school could refuse to endorse OPT for any reason. However, so that it does not appear capricious or callous an extant school policy should be in place.