Academic Freedom (AF) is one of the rights guaranteed in the human rights doctrine that greatly impacts higher education. This study aimed to determine the interaction between the perceived extents of AF practiced in a School of Business and Accountancy (SBA) of a private college in the Philippines and the academic performance of its SBA students in 2011–2012. Results reveal that as perceived by the students’ response to the AF questionnaire and verified by the students’ focused group discussion and faculty interview, AF in administration and instruction was prominently practiced by the SBA teachers. A highly significant positive correlation existed between the practice of AF in instruction and its practice in administration implying that students felt free to interact with their teachers inside and outside the classroom. However, results also showed a negative correlation between AF and academic performance. Although the data did not reach statistical significance, it suggested that the freedom of interacting with the teachers may adversely affect the students’ academic performance giving credence to the adage “familiarity breeds contempt”. Further studies are recommended to understand the deeper impact of AF on academic performance especially the consequences of the negative effect.