Hi, We were told at our uni that if we failed any assignments then we would be unable to transfer to the degree regardless of the average mark (55% in our case too). My friend had failed one of her essays and so believed that she would be unable to transfer but was over the moon to find that the uni offered the transfer anyway and as a result she completed the third year on the degree course. So it is possible but it may depend on your particular uni. I, myself changed from diploma to degree after a lot of hard thinking and decision making, I was worried about stepping up a level, but I did it and I am now pleased I did. I hope you get the chance to do it too, good luck. Mandy