Regulation of Tuition and Fees in Private Schools

The Secretary of Education is given authority to regulate tuition and fees.
Applies to private schools, colleges, universities, and other educational institutions including nurseries and kindergartens as defined in Act No. 2706.

Private institutions must notify relevant parties at least 180 days before the increase takes effect.
Notification must be given to the student council or government, Association of Parents or Parents-Teachers Association.
A copy must be sent to the Director of Private Schools and the Regional Superintendent.
The notice must include: current fees, amount of increase, reason for increase, effective semester or school year, and a statement on opposition period.
If no opposition within 30 days, the increase is authorized.
Opposition triggers convening of a Local School Council on Fees to negotiate or decide on the increase.
The Council is composed of representatives from administration, students, parents, faculty, and the Director of Private Schools as chair.
Council has powers to subpoena, administer oaths, examine witnesses, and require documents.
The Council aims for amicable settlement; settlements are final and binding.
If negotiation fails, the Council decides within 100 days before the new school year.
Decision factors include educational objectives, facilities, curriculum standards, faculty, enrollment, costs, and a maximum 12% return on net worth.
Increase generally cannot exceed 15% annually unless extraordinary circumstances exist.

Aggrieved parties may appeal to the Secretary of Education within 15 days from receipt of the Council's decision.
Secretary must decide at least 60 days before the school year.
Appeal suspends execution of the Council’s decision.
The Secretary’s decision is final and binding.
No appeal results in decision becoming final after the appeal period.

Institutions proposing a decrease must notify the same parties 90 days before the decrease takes effect.
Similar notification details as increase procedure.
No opposition within 30 days authorizes the decrease.
Oppositions are resolved by the Director of Private Schools whose decisions are final.

Notification and decision periods shortened for cases like currency fluctuations or strikes.
New periods: 90 days for notice, 15 days for opposition, 60 days for Council decision.
Secretary’s decision must be promulgated promptly to allow adjustment.

All fees except tuition shall form a trust fund.
Funds must be used for the purposes collected.
Unexpended balances may cover deficits in other fees or form a scholarship fund after five years.
Scholarship fund benefits poor but deserving students and is jointly administered.
Prohibition on fundraising events such as performances or shows.

Secretary of Education, in consultation with relevant educational associations, must issue implementing rules within 30 days.
Rules take effect upon publication in the Official Gazette and two newspapers.

Violations punishable by fine of Php 2,000, imprisonment for one year, or both.
Penalties apply to responsible school officials or persons acting on behalf of the institution.
Public officials committing violations face penalties and possible administrative sanctions.