Amendment to RA 6728 for Private Education Aid

Legal basis, amendment, and predecessor rules

Republic Act No. 8545 amends Republic Act No. 6728, entitled “Government Assistance to Students and Teachers in Private Education Act.”
Republic Act No. 8545 changes Section 1 of Republic Act No. 6728 by providing a new title for the amended law: “Expanded Government Assistance to Students and Teachers in Private Education Act.”
Republic Act No. 8545 reinstitutes the Student Loan Fund Authority under Republic Act No. 6014 for the education loan system created under the Act (Section 10).
Republic Act No. 8545 repeals or modifies laws and decrees, particularly Presidential Decree Nos. 932 and 1371, and inconsistent letters of instructions, rules and regulations, or parts thereof (Section 18).

Policy and definitions established

Section 2 declares State policy to promote and make quality education accessible to all Filipino citizens, consistent with the Constitution.
Section 2 recognizes the complementary roles of public and private educational institutions, and the contribution of private schools to education.
Section 2 directs the State to provide mechanisms to improve quality in private education by maximizing existing private education resources, while the government remains responsible for basic education and higher-priority functions.
Section 2 defines Elementary education as the first six (6) years of basic education, excluding pre-school and grade seven, completion attested by a certificate issued by or with permission of the Department of Education, Culture and Sports.
Section 2 defines Secondary education as the next four (4) years of basic education, completion attested by a high school diploma issued by or with permission of the Department of Education, Culture and Sports.
Section 2 defines Post-secondary education as non-degree vocational and technical courses in postsecondary vocational and technical institutions or degree courses in higher educational institutions, completion attested by TESDA or CHED, respectively.
Section 3 defines the preference category for assistance on family income: students whose family income is not more than Seventy-two thousand pesos (P72,000) or such amounts as may be determined by the respective councils.
Section 8 defines an underprivileged student as one whose gross income, if any, and the combined annual gross income of parents do not exceed Seventy-two thousand pesos (P72,000.00).

Coverage, eligibility, and program reach

The Act’s assistance programs apply to students and teachers in private education, organized through student and teacher assistance forms (Section 4).
Section 3 extends assistance only to students who are citizens of the Philippines.
Section 3 extends programs for private post-secondary vocational and technical institutions and higher educational institutions to students and teachers of community colleges in degree and non-degree programs.
Section 3 requires the State Assistance Council’s quality measurement standards for recipient institutions in cooperation with DECS, CHED, and TESDA.
Section 3 provides that within a reasonable time the respective State Assistance Council determines, PESFA student grantees must be enrolled in schools with accredited programs or applying for accreditation, as recognized by the respective Council.
Section 8 applies to expanding the Private Education Student Financial Assistance (PESFA) program for degree and non-degree vocational/technical courses and covers qualified enrolling first year students.
Section 9 limits tuition fee supplement assistance to priority course programs determined by TESDA and CHED.
Section 10 establishes a loans system administered by CHED and TESDA (or CHED delegation to the Student Loan Fund Authority under Republic Act No. 6014) for educational loans.

Criteria and forms of assistance

Section 3 requires assistance programs to be based on criteria including tuition fees charged, socioeconomic needs of each region with priority to Social Reform Agenda (SRA) provinces, overall performance of schools, academic qualifications and financial needs of students and teachers, plus financial needs of schools, and geographic spread and size of student population.
Section 4 provides that assistance to private education consists of assistance to students and assistance to teachers.
Section 4 lists student assistance forms:
- Tuition fee supplements for private high school students, including vocational and technical course students;
- High School Textbook Assistance Fund;
- Expansion of the Educational Service Contracting (ESC) Scheme;
- The voucher system of PESFA;
- Scholarship grants to students graduating as valedictorians and salutatorians from secondary schools;
- Tuition fee supplements for students in private colleges and universities; and
- Education Loan Fund.
Section 4 lists teacher/faculty assistance forms:
- In-service training fund for teachers in private high schools; and
- College Faculty Development Fund.

Student and teacher assistance mechanics

Section 5 provides tuition fee supplements for students in private high schools through a voucher system.
For private high school students whose schools charge an amount as determined by the State Assistance Council, Section 5 requires the government to issue a voucher in an amount determined by the Council.
Section 5 requires reimbursement to participating private schools within one hundred twenty (120) days from the close of the registration period.
Section 5 guarantees assistance slots to private high schools participating as of the Act’s effectivity equal to the total number of students who availed tuition fee supplements for school year 1997-1998, and authorizes the State Assistance Council to determine additional slots and/or additional participating schools in subsequent years.
Section 6 establishes the High School Textbook Assistance Fund in DECS to give per-student assistance for purchase of high school textbooks exclusively for private school students implementing the Secondary Education Development Program.
Section 6 caps textbook assistance per student so it shall not exceed what public high schools provide per student under a comprehensive textbook program of the Secondary Education Development Program (SEDP).
Section 6 restricts textbook assistance to beneficiaries of tuition fee supplements and the Educational Service Contracting scheme.
Section 7 requires DECS to continue contracts with private schools where the government shoulders tuition and other fees of high school students enrolled under the program.
Section 7 obligates DECS to contract with private schools in communities with no public high schools, and the government shoulders tuition and other fees for enrolled students.
Section 7 caps per-student assistance to the per student cost in public high schools.
Section 7 requires DECS to fully pay subsidized amounts to participating schools no later than one hundred eighty (180) days from the close of the registration period.
Section 7 requires allocation among sixteen (16) regions proportional to total population and high school age population for the first school year, and mandates that starting school year 1998 an equalization scheme be implemented by the State Assistance Council.
Section 7 guarantees slots for participating private high schools to match the number of students availing educational service contracting assistance for school year 1997-1998, and authorizes the Council to set additional slots and/or participating high schools later.
Section 8 expands the existing PESFA program for degree and non-degree vocational/technical courses so all qualified enrolling first-year students receive a scholarship plus an allowance.
Section 8 requires PESFA selection for underprivileged students based on family income, geographic spread, and competitive examination results given by CHED for degree courses and TESDA for non-degree vocational/technical courses, coordinated with DECS.
Section 8 requires equitable PESFA allocation to provinces and cities according to regional and national plans to priority courses determined by CHED and TESDA.
Section 8 requires private post-secondary vocational and technical institutions and higher educational institutions to provide full or half tuition waivers for five percent (5%) of entering freshmen, including valedictorians and salutatorians of both public and private high schools, provided they meet the school’s admission tests.
Section 8 provides that valedictorians receiving tuition waivers under Section 8 may receive government allowances provided they enroll in priority courses, subject to rules of the State Assistance Council.
Section 8 provides that if the graduating class exceeds two hundred and fifty (250) students, all salutatorians and first honorable mention graduates may receive the same allowance granted to valedictorians.
Section 9 provides that tuition fee supplements for private post-secondary vocational and technical institutions and higher education institutions are provided by government through a voucher system for priority courses determined by TESDA and CHED.
Under Section 9, for students in priority programs in schools charging an effective per unit tuition rate as determined by the State Assistance Council, government issues a voucher for the amount of tuition fee supplement determined by the State Assistance Council.
Section 9 applies to tuition fee supplements under Section 9 the same conditions on government assistance and tuition increases as provided under Section 5(2).
Section 10 creates a Students’ Loan Fund as a special fund administered by CHED and TESDA or by delegated authority through the Student Loan Fund Authority created under Republic Act No. 6014.
Section 10 provides that the Students’ Loan Fund finances educational loans to cover matriculation and other school fees and educational expenses for book subsistence, board and lodging, and requires direct payment of amounts covering tuition and other school fees to the school concerned.
Section 10 requires that any loan be paid by the student-debtor after completion of the course or profession, but only after a period of two (2) years from the time the student acquires employment.
Section 10 caps interest at not more than six percent (6%) per annum on the balance.
Section 10 requires the Social Security System to make available low interest educational loans to its members and to private educational institutions for school buildings and/or improvement of plant and facilities.

Eligibility continuance rule

Section 11 bars continued entitlement to benefits under the Act for any student who fails for one (1) school year in the majority of the academic subjects in which the student has enrolled during the course of study, unless the failure is due to some valid cause beyond control.

Teacher support, funds, and subsidy limits

Section 12 establishes an In-service Training Fund (Inset Fund) in DECS for improving the quality of teaching in private secondary education through upgrading knowledge and competencies in critical subject areas and modernizing teaching techniques and strategies, including training in computer use and other multi-media educational technologies.
Section 12 limits availability of the Inset Fund to qualified licensed teachers in participating private high schools as determined by the State Assistance Council.
Section 12 caps Inset Fund for private secondary education so that it shall not exceed available amounts for public secondary education on a per capita basis.
Section 13 establishes a College Faculty Development Fund in TESDA and CHED to provide scholarships for graduate degree, degree and non-degree workshops or seminars for faculty members in private post-secondary vocational and technical institutions and higher educational institutions.
Section 13 requires faculty scholarship recipients to render return service for every year of scholarship availed of as determined by the State Assistance Council in conformity with NEDA policies on return service of government scholars.
Section 13 limits scholarships to priority courses determined by TESDA and CHED and prohibits awarding scholarships to promote or inhibit sectarian purposes.
Section 14 creates a Teachers’ Salary Subsidy Fund in DECS to grant government subsidy to teachers in private high schools participating in the Act.
Section 14 limits total monthly salary (including subsidy) so it shall not exceed eighty percent (80%) of the salary of a counterpart in the public sector.
Section 14 limits the monthly subsidy so it shall not exceed the amount of any monthly salary increase that teachers in public high schools receive after the Act’s effectivity.
Section 14 requires subsidy eligibility for private high school teachers to be duly licensed by the Professional Regulation Commission.
Section 14 requires government to provide teachers with a voucher for salary subsidy and to reimburse directly to teachers within sixty (60) days after the close of the school year upon submission of proof of qualification and actual teaching service in a participating private high school.
Section 14 maintains that the present allocation out of increases from tuition and other income shall be maintained.
Section 14 requires prioritization in case of insufficiency of funds to married teachers supporting a family.

Administration, Council structure, and implementation

Section 15 assigns the State Assistance Council responsibility for policy guidance and direction, monitoring and evaluation of new and existing programs, and promulgation of rules and regulations.
Section 15 assigns day-to-day administration and program implementation to DECS, TESDA, and CHED for private secondary education, post-secondary vocational and technical education, and higher education, respectively.
Section 15 authorizes the State Assistance Council to engage services and support of qualified government or private entities for implementation.
Section 15 provides that the State Assistance Council (the Council) is chaired by the Secretary of Education, Culture and Sports, with the Chairperson of CHED and the Director-General of TESDA as co-chairpersons.
Section 15 includes as members representatives from the National Economic and Development Authority, the Department of Budget and Management, and the Department of Science and Technology, plus representatives from nationwide associations of teachers, students, parents, and school administrators concerned with secondary, post-secondary vocational and technical education, and higher education.
Section 15 sets terms for the last three (3) sector representatives as one (1) school year, subject to reappointment for a maximum of four (4) school years, based on recommendations of their sectors.
Section 15 designates representatives from the Committees on Education of both Houses of Congress as resource persons to the Council.
Section 15 requires the Council to meet from time to time as needed to assess program effectivity and ensure recipient institutions continue to provide quality education.
Section 15 requires the Council to establish criteria to determine which institutions may continue to enroll student recipients and teachers/faculty as recipients of government assistance.

Appropriations and trust administration

Section 16 provides that the amount needed to implement the programs shall be included in the annual General Appropriations Act for 1998.
Section 16 directs that the appropriation of One billion pesos (P1,000,000,000.00) already appropriated under the General Appropriations Act of 1998 shall be used for this purpose.
Section 16 constitutes all funds appropriated under the Act as a trust fund administered by the State Assistance Council.
Section 16 requires direct and automatic release of trust funds to the different regional offices of DECS.

Penalties for violations

Section 17 provides that when an institution violates the Act or the rules and regulations issued under it, the DECS, TESDA, and CHED, upon the recommendation of the Council, may bar the institution from participating in or benefiting from the programs of the Act and from other programs of DECS.
Section 17 preserves administrative and criminal actions: barring from programs is without prejudice to administrative and criminal charges that may be filed against the school and/or its responsible officers under existing laws.

Repeal, separability, and effectivity

Section 18 repeals or modifies inconsistent laws and decrees, especially Presidential Decree Nos. 932 and 1371, including inconsistent letters of instructions and rules and regulations or parts thereof.
Section 19 contains a separability rule: an unconstitutional provision does not affect validity or effectivity of other provisions not affected.
Section 20 sets the publication-based immediate effectivity rule and governs when implementation of new programs begins based on approved appropriations and the succeeding fiscal year’s school year.