The inception of no-fee schools and a school-fee exemption policy has become a contentious issue but also an exciting one for school managers in South Africa. Managers opposed to the policy have cited amongst others things, academic standards dropping, as well as parents who can afford to pay jumping on the bandwagon and refusing to pay. While the advocates for no-fee schools argue that it is not only a moral obligation for the authorities to ensure that every child is able to get basic education, it is also a basic human right. Notwithstanding these contrasting views, an overwhelming majority (62%) of the purposively sampled principals of public schools in the Free State Province expressed relief and agreement with this decision to declare poor school no-fee schools. This article, therefore, intends to explore not only the background to the policy but also the possible impact of this decision on overall school performance as perceived by the school principals.