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Is it legal for a college or university to demand payment for our?

I didnot understand your question completely. So you mean that you want your transcripts to be send to foreign universities for admission purpose. In that case the University may charge for it. However if you want them after exam, then no it is provided free of cost. Most importantly be logical, you are not going to court to file for a small fees that they may be charging. It is simpler to just pay and get your transcripts. However this is just my opinion, good day mate.

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