Title
Government Support for Private Education
Law
Republic Act No. 6728
Decision Date
Jun 10, 1989
The Government Assistance to Students and Teachers in Private Education Act aims to improve the accessibility and quality of education in the Philippines by providing financial assistance, scholarships, and loan programs to students in private schools, with a focus on elementary and secondary education.

Law Summary

Criteria for Government Assistance

  • Assistance programs based on tuition fees, socio-economic needs, school performance, student qualifications, financial need, regional distribution, and student population size.
  • Student grantees must be enrolled in accredited or applying-for-accreditation schools under recognized accrediting bodies.
  • Preference for students from families earning no more than P36,000 annually or as determined.
  • Inclusion covers post-secondary, vocational, technical courses, and community colleges.
  • Students must be Filipino citizens and encouraged to study in their home region.

Forms of Government Assistance

  • Tuition fee supplements for private high school students including vocational/technical courses.
  • High School Textbook Assistance Fund for eligible private schools.
  • Expansion of the Educational Service Contracting (ESC) Scheme.
  • Private Education Student Financial Assistance Program (PESFA) voucher system.
  • Scholarships for valedictorians and salutatorians.
  • Tuition supplements to private college/university students.
  • Education Loan Fund.
  • College Faculty Development Fund.

Tuition Fee Supplement for Private High School Students

  • Voucher system provides financial aid to students in schools charging less than P1,500/year.
  • Voucher amount set at P290, with conditions on tuition paid and government reimbursement timelines.
  • No assistance to students in schools charging over P1,500/year; such schools may raise tuition subject to regulation.
  • At least 70% of subsidies/tuition increases must be allocated to salaries and benefits of teaching/non-teaching personnel, excluding administrators who are principal stockholders.
  • At least 20% allocated to modernization and operational costs of school facilities.
  • Schools must maintain separate accounting records of government assistance and tuition fee use.

High School Textbook Assistance Fund

  • Established within the Department of Education for private schools charging under P1,500/year.
  • Funds used exclusively for non-sectarian textbooks approved by the Department.

Expansion of Educational Service Contracting (ESC) Scheme

  • DECS contracts with private schools to cover tuition for excess public high school students.
  • Contracts extended to private schools in communities lacking public high schools.
  • Gradual increase in assisted schools to cover all qualifying schools within four years.
  • Assistance amount capped at the per-student cost of public high schools.
  • Payment deadlines and regional allocation of assistance detailed.

Assistance to College Freshmen

  • PESFA program expanded to cover minimum percentages of freshmen from 10% (1989) to 25% (1992 onward).
  • Selection based on family income, geographic distribution, and examination results.
  • Allocation aligns with regional/national plans and priority courses.
  • Underprivileged students defined as those from families earning no more than P36,000 annually.
  • Private colleges/universities must provide tuition waivers for 5% of freshmen, including valedictorians and salutatorians from qualifying high schools.
  • Additional government allowance may be granted to high school honorees subject to meeting admission and retention criteria.

Further Assistance to Non-Freshmen College Students

  • Tuition supplements via voucher system for students in priority programs at schools charging P80 or less per unit.
  • Assistance equals tuition fee increases, with fee increases capped at P12 per unit.
  • No assistance for students in more expensive schools; however, these schools must grant tuition waivers to 5% of students.
  • Accredited schools charging less than P80 per unit may set their own tuition rates subject to regulation.
  • Conditions for government assistance similar to those for high school tuition help.

Procedures for Tuition Fee Increases

  • Mandatory consultations involving school administration and parents/teachers associations (secondary schools) or student governments, alumni, and faculty associations (colleges).
  • Audited financial statements must be made available.
  • Disputes resolved by arbitration involving alumni associations or impartial entities.

Education Loan Fund

  • "Study Now, Pay Later" loans established under DECS or delegated authority.
  • Loans cover tuition, fees, books, subsistence, and lodging.
  • Tuition payments made directly to schools.
  • Repayment begins two years after employment, with interest capped at 12% per annum.
  • Social Security System provides low-interest loans for education and school infrastructure.

Limitations on Student Eligibility

  • Benefits denied to students who fail majority of subjects for one school year unless due to valid cause.
  • Benefits denied if students enroll outside their domiciliary region unless pursuing priority courses not offered locally.

College Faculty Development Fund

  • Fund established to provide scholarships for graduate degrees and non-degree training for private college faculty.
  • Recipients must serve three years for every year of scholarship granted.
  • Scholarships limited to priority courses and exclude sectarian objectives.

Program Administration

  • State Assistance Council (SAC) provides policy guidance, monitoring, evaluation, and rule-making.
  • DECS handles day-to-day administration and may partner with government/private entities.
  • SAC chaired by Secretary of Education with members from NEDA, DBM, DOST, and sector representatives appointed by the President.
  • SAC reviews program effectiveness and accreditation status of participating institutions.

Appropriations and Funding Sources

  • Funding allocated from DECS appropriations, coconut levies, designated taxes, regulatory authority collections, Development Bank of the Philippines income, Overseas Welfare Fund, and other lump sum appropriations.
  • Total authorized budget capped at P500 million for 1989; further funding included in annual appropriations.
  • Per-student assistance amounts fixed unless Congress decides otherwise.

Penalties for Violations

  • Schools violating provisions or related rules may be barred from participation and other DECS programs.
  • Refusal to provide audited financial statements during tuition consultations results in forfeiture of tuition increase rights and other penalties.

Repeal and Separability

  • Inconsistent laws such as Presidential Decrees Nos. 932 and 1371 are repealed or modified accordingly.
  • Unconstitutional provisions shall not affect the validity of the remaining law.

Effectivity

  • The Act takes effect immediately upon publication in English and Filipino newspapers of general circulation.

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