Title
Amendment to RA 6728 for Private Education Aid
Law
Republic Act No. 8545
Decision Date
Feb 24, 1998
A law promoting accessible quality education in the Philippines, providing assistance to students and teachers in private educational institutions through various programs and funds, with the government prioritizing basic education and establishing standards for course and institution evaluation.

Law Summary

Declaration of Policy

  • Promotes accessible, quality education for all Filipinos.
  • Recognizes complementary roles of public and private educational institutions.
  • Emphasizes government responsibility to provide basic, post-secondary vocational/technical, and higher education.
  • Defines education levels such as elementary (6 years), secondary (4 years), post-secondary vocational/technical, and higher education.

Criteria for Assistance

  • Assistance programs consider tuition fees, socioeconomic needs prioritizing Social Reform Agenda provinces, school performance, academic qualifications, financial needs of students/teachers/schools, geographic distribution, and student population size.
  • Student grantees must enroll in accredited or applying-to-be-accredited schools.
  • Preference given to students with family income not exceeding P72,000 or council-determined amounts.
  • Assistance extends to community colleges.
  • Programs encourage regional study to minimize displacement.
  • Assistance limited to Filipino citizens.
  • State Assistance Council, DECS, CHED, and TESDA set quality standards.
  • Assistance allocation respects existing income allocation proportions.

Forms of Assistance

  • Assistance to students includes:
    • Tuition fee supplements for private high school students.
    • High School Textbook Assistance Fund.
    • Expansion of Educational Service Contracting (ESC) Scheme.
    • Voucher system for Private Education Student Financial Assistance Program (PESFA).
    • Scholarships for valedictorians and salutatorians.
    • Tuition fee supplements for private college/university students.
    • Education Loan Fund.
  • Assistance to teachers includes:
    • In-service training funds for private high school teachers.
    • College Faculty Development Fund.

Tuition Fee Supplements for Private High School Students

  • Government provides vouchers for tuition fee assistance.
  • Voucher amounts determined by State Assistance Council.
  • Schools reimbursed within 120 days post-registration.
  • Guaranteed assistance slots based on prior year allocations.

High School Textbook Assistance Fund

  • Established within DECS.
  • Provides per student assistance for textbooks, matching amounts given to public high school students.
  • Available only to beneficiaries of tuition fee supplements and ESC scheme.

Expansion of Educational Service Contracting (ESC) Scheme

  • DECS contracts with private schools to cover tuition for enrolled students.
  • Includes schools where no public high schools exist.
  • Assistance capped at per-student public high school cost.
  • Payment to schools within 180 days post-registration.
  • Funds allocated regionally based on population demographics.
  • Guaranteed slots based on previous year usage; adjustments possible.

Assistance to College Freshmen (PESFA Voucher System)

  • Expanded PESFA covers degree and non-degree vocational/technical courses.
  • Targets underprivileged first-year students, selected by family income, geography, and competitive exams (CHED/TESDA).
  • Equitable provincial and city allocation focusing on priority courses.
  • Underprivileged defined as income ≤ P72,000.
  • Private institutions to provide full/half tuition waivers for 5% of freshmen including valedictorians/salutatorians.
  • Valedictorians may receive government allowances if enrolled in priority courses.
  • In large classes (>250), salutatorians and first honorable mentions may also receive allowances.

Tuition Fee Supplements for Private College, Vocational, and Technical Students

  • Voucher system applies to students in priority courses.
  • Voucher amounts by State Assistance Council.
  • Conditions follow those for private high school tuition supplements.

Education Loan Fund

  • "Study Now, Pay Later" plan created.
  • Administered by CHED and TESDA or Student Loan Fund Authority.
  • Loans cover tuition, fees, books, subsistence, and lodging.
  • Tuition payments made directly to schools.
  • Repayment begins two years after employment.
  • Interest capped at 6% per annum.
  • Social Security System to provide low-interest educational loans for members and private institutions' infrastructure.

Academic Performance Requirement

  • Students failing majority of subjects in a year forfeit benefits unless failure due to valid causes beyond control.

In-service Training Fund (Inset Fund)

  • Established within DECS.
  • For upgrading private high school teachers’ knowledge and teaching skills, including modern techniques and technology use.
  • Available only to licensed teachers in participating schools.
  • Fund allocation per capita shall not exceed that for public secondary education.

College Faculty Development Fund

  • Established within TESDA and CHED.
  • Provides scholarships for graduate degrees and workshops for faculty in private post-secondary vocational/technical and higher educational institutions.
  • Recipients must render return service as determined by State Assistance Council.
  • Scholarships prioritize TESDA and CHED designated priority courses.
  • Scholarships must avoid sectarian promotion or inhibition.

Teachers’ Salary Subsidy Fund

  • Established within DECS to subsidize salaries of private high school teachers.
  • Total salary including subsidy capped at 80% of public sector counterparts.
  • Monthly subsidy shall not exceed public school teachers’ salary increases after Act's effectivity.
  • Recipients must be licensed by PRC.
  • Subsidy vouchers reimbursed within 60 days after school year ends upon qualification proof.
  • Maintain current allocation out of tuition and other income increases.
  • Priority given to married teachers supporting families when funds are insufficient.

Program Administration and Governance

  • State Assistance Council responsible for policy, monitoring, evaluation, and regulation formulation.
  • DECS, TESDA, CHED handle daily administration and implementation for secondary, post-secondary vocational/technical, and higher education, respectively.
  • Council chaired by Secretary of Education, Culture and Sports; co-chaired by CHED Chairperson and TESDA Director-General.
  • Members include representatives from NEDA, DBM, DOST, and representatives from nationwide teacher, student, parent, and school administrator groups.
  • Congressional education committee representatives act as resource persons.
  • Council establishes criteria for eligible institutions and evaluates program effectiveness.

Appropriations and Trust Fund

  • Initial appropriations of P1 billion from the 1998 General Appropriations Act.
  • Funds constituted as a trust fund administered by the State Assistance Council and released automatically to DECS regional offices.

Penalties

  • Institutions violating the Act or regulations may be barred from program participation by DECS, TESDA, and CHED upon Council recommendation.
  • Administrative and criminal charges may be pursued against offending schools and officials.

Repealing and Separability Clauses

  • Inconsistent laws, decrees, and regulations, including Presidential Decrees Nos. 932 and 1371, are repealed or modified.
  • Unconstitutional provisions shall not affect validity of other provisions.

Effectivity

  • Act effective immediately upon publication in English and Filipino newspapers of general circulation.
  • Implementation of new assistance programs effective starting the school year of the succeeding fiscal year after appropriations approval.

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