QuestionsQuestions (DBM NATIONAL BUDGET CIRCULAR NO. 467)
RA 6728 declares the policy of the State to promote and make quality education accessible to all Filipino citizens. It recognizes the complementary roles of public and private educational institutions and the contribution of private schools. It also emphasizes that government responsibility for basic elementary and secondary education has priority over higher education, and that mechanisms will be provided to improve quality in private education by maximizing existing private educational resources.
The programs are based on criteria including tuition fees charged by schools, socio-economic needs of each region, overall performance of schools, academic qualifications and financial needs of students, geographic spread, and size of student population.
Within such reasonable time as determined by the State Assistance Council, student grantees under the PESFA must be enrolled in schools which have accredited programs or are applying for accreditation as determined by the Federation of Accrediting Agencies of the Philippines, namely: PAASCU, ACSCAA, and PACUCOA.
Only students who are citizens of the Philippines may receive assistance under the Act.
Preference is given to students whose family income is not more than ₱36,000 (or such amount as may be determined by the Council). RA 6728 also defines an underprivileged student under PESFA as one whose annual gross income (and that of the combined annual gross income of his parents, if any) does not exceed ₱36,000.
Assistance consists of: (1) tuition fee supplements for private high school students (including vocational/technical courses); (2) High School Textbook Assistance Fund; (3) expansion of the Educational Service Contracting (ESC) scheme; (4) voucher system of PESFA; (5) scholarship grants to secondary valedictorians and salutatorians; (6) tuition fee supplements to private college/university students; (7) Education Loan Fund; and (8) College Faculty Development Fund.
For schools charging less than ₱1,500 per year (during SY 1988-1989 or such amount later determined by the Council), the government provides a voucher equal to ₱290. The student must pay in SY 1989-1990 tuition/fees equal to those paid in the preceding academic year. The government reimburses vouchers within 60 days from the close of the registration period. The student’s family must reside in the same city or province where the high school is located, unless the student was enrolled in that school during the previous academic year.
No tuition fee assistance is granted by the government. However, the schools may raise their tuition fees subject to Section 10 (consultation and related requirements).
At least 70% of the amount subsidized for tuition fee or of the tuition fee increases (as applicable) must go to salaries, wages, allowances, and other benefits of teaching and non-teaching personnel except administrators who are principal stockholders. Government subsidies cannot be used directly for salaries of teachers of non-secular subjects. At least 20% must be used for modernization of buildings, equipment, libraries, laboratories, gymnasia, and similar facilities and payment of other operating costs. Schools must maintain separate records and make them available for periodic inspection by relevant stakeholders.
It is established in DECS to give per student assistance (for private schools charging less than ₱1,500 per year in SY 1988-1989 or later amounts determined by the Council) exclusively for purchasing high school textbooks supporting the Secondary Education Development Program. It cannot be used to purchase books that will advance or inhibit sectarian interest. Textbooks must be included in the DECS-approved list.
DECS continues contracting with private schools where government shoulders tuition and other fees of excess students in public high schools who enroll under the program, settling outstanding obligations before new contracting. DECS also contracts with private schools in communities without public high schools, shouldering tuition/fees of eligible students. The number of such assisted schools increases yearly so all schools in that category are assisted within 4 years from promulgation. Assistance shall not exceed the per-student cost in public high schools; DECS fully pays participating schools by the end of the school year unless delay is attributable to participating schools.
Minimum PESFA first-year scholarship participation: 10% (SY 1989), 15% (SY 1990), 20% (SY 1991), 25% (SY 1992), and thereafter at least 25%. Selection is based on family income, geographic spread, and results of competitive examinations given by DECS to students in all secondary schools. Allocation is equitable among provinces and cities in accordance with regional and national plans to priority courses.
Private colleges/universities must provide full or half tuition waivers for 5% of entering freshmen, including valedictorians and salutatorians of both public high schools and private high schools charging less than ₱1,500 as of SY 1988-1989 (or later amounts determined by the Council). They must meet admission tests and retention requirements. Valedictorians may also receive government allowances (in addition to tuition waivers) if they enroll in priority courses. If the graduating class exceeds 250 students, all salutatorians and first honorable mention graduates may also be entitled to the valedictorian allowance.
Government provides voucher-based tuition fee supplements for non-freshmen in priority course programs. If the school’s effective per-unit tuition rate is ₱80 or less, the voucher value equals the tuition fee increase, but schools may not raise fees by more than ₱12 per unit for both priority and non-priority courses. Assistance generally applies only to students who completed one academic year by June 1989 in priority programs and does not apply to future students and to those who transfer outside their region. If the school’s effective per-unit tuition is above ₱80, no assistance is given, but the school must grant full or half tuition waivers to 5% of all students.
Schools must conduct appropriate consultations in proposed tuition fee increases with duly organized parents and teachers and faculty association for secondary schools, and with student governments/councils, alumni, and faculty associations for colleges. Audited financial statements must be made available to authorized representatives of these sectors. The parties must attempt to reconcile differences. If there is disagreement, the alumni association or another impartial body chosen acts as arbitrator.
Benefits do not apply if the student fails in one school year in the majority of academic subjects enrolled unless failure is due to a valid cause beyond control. Benefits also do not apply if the student enrolls for the first time or transfers outside the region where domiciled, unless the desired course is a priority course determined by DECS and is not offered in any private school in his region.
DECS may bar the institution from participating in or benefiting from the program (and other DECS programs), without prejudice to administrative and criminal charges under existing laws. Specifically, if a school refuses to furnish copies of audited financial statements as required before consultations for tuition fee increases (and related sections), it forfeits the right to increase tuition fees, in addition to other penalties or sanctions under the Act or existing laws.