Regulation of Tuition and Fees in Private Schools

Covered private educational institutions

Section 2 covers each private school, college, university, or any other educational institution as defined in Act Numbered Twenty-seven hundred and six.
Section 2 expressly includes nurseries and kindergarten schools within the scope of regulated institutions.

Definitions and constitution of the “Local School Council on Fees”

The Act establishes the Local School Council on Fees to resolve fee controversies for tuition and/or other school fees.
Section 3 requires the Local School Council on Fees to include specified representatives:
- (1) one representative from the school administration to be chosen by the school concerned;
- (2) two representatives from the student body chosen by the student council or student government;
- For schools below college or university level, representatives are from the Association of Parents or, in default thereof, the Parents-Teachers Association;
- (3) one representative from the Faculty Club or Association; and
- (4) the Director of Private Schools or an authorized representative, who acts as Chairman.
When performing its functions, the Council has subpoena and evidence powers, including the power to:
- issue subpoenas to compel attendance of witnesses,
- administer oaths,
- examine any person under oaths, and
- require the production of books or papers relevant to the case.

Increasing tuition and other fees

Section 3 applies when a private educational institution proposes to increase tuition and/or other fees for any course.
The institution must adopt the prescribed procedure and may impose increases only as authorized under the Act.

Notice before the effective school period

Section 3(a) requires the institution to serve written notice at least 180 days before the school year, semester, or term when the increase is to be effective.
The institution must serve the notice on:
- the student council or government; or
- for schools or courses below the college or university level, the Association of Parents, or in default thereof, the Parents-Teachers Association of the school concerned.
Section 3(b) requires separate transmittal to authorities and posting:
- personal delivery or registered mail to the Director of Private Schools;
- copy furnished to the Regional Superintendent of the Bureau of Private Schools;
- posting by the school administration in at least two conspicuous places within the premises of the school.
Section 3(b) requires the notice to state:
- (1) the current fees or charges and the amount of increase,
- (2) the reason or reasons for the proposed increase,
- (3) the semester/term or school year when the increase will take effect, and
- (4) a statement that if no opposition is filed until the thirtieth day from the posting of the notice, the increase becomes effective under the Act.

Opposition and creation/convening of the Council

Section 3(c) provides that if a formal opposition is presented to the school administration within 30 days after receipt of the notice, the Local School Council on Fees is convened to act on the controversy.
Opposition must be presented by at least:
- a majority of the student governing body, or
- at least 20% of the parents for schools below college or university level.
The school administration must ensure that a copy of the opposition is served on the Director of Private Schools.
Upon receipt, the Director of Private Schools must immediately transmit the opposition to the corresponding Regional Superintendent of private schools and direct that the Local School Council on Fees be immediately organized and convened by the Regional Superintendent.

No opposition means authorized increase

Section 3 provides that if no opposition is filed within the periods provided, the increase is deemed authorized.

Settlement, decision timing, standards, and limits

The Local School Council on Fees must exert efforts to negotiate, conciliate, and settle the case to the satisfaction of the interested parties.
Any settlement agreed upon by the parties is final and binding, and copies must be sent to the Director of Private Schools and the Regional Superintendent of the Bureau of Private Schools.
If intra-school remedies are exhausted and no agreement is reached, the Council must decide the case by majority vote at least 100 days before the opening of the school year, semester, or term when the proposed increase will be effected.
The Council’s decision must consider objectives under Article XIV, Section five of the Constitution, and must account for:
- sufficiency of facilities,
- the nature of courses and curriculum offered,
- the standards maintained,
- the volume of enrolment,
- sufficiency of faculty development program and emoluments,
- facilities and student conveniences installed,
- other relevant matters in relation to the general cost by determining the cost of essential services required to meet approved standards by the Department of Education,
- allowance of a maximum of 12% on net worth.
Section 3 imposes a cap on annual increases: unless required by extraordinary circumstances or events, no school, college, or university may increase annual tuition fees by more than 15% of the fees collected in the preceding school year.
Section 3 requires the Council’s decision to be in writing and to contain a concise statement of facts and grounds.

Appealing fee increases to the Secretary

Section 4 allows any party adversely affected by the Local School Council on Fees decision to appeal within 15 days from receipt of the decision.
The appeal must be filed to the Secretary of Education, who must:
- give notice and opportunity to be heard to interested parties,
- act on the appeal at least 60 days before the close of the school year preceding the school year to which the increase applies.
The Secretary’s decision is final and binding from its promulgation.
An appeal stays the execution of the Local School Council on Fees decision.
If no appeal is filed within the allowed period, the Local School Council decision becomes final and binding upon expiration of that period.

Decrease of tuition and other fees

Section 5 applies when a private educational institution proposes to decrease tuition and/or other fees for any course.
Section 5 requires notice of the proposed decrease to the student council or government, and for schools below college or university level, notice must be served on the Association of Parents or, in default thereof, the Parents-Teachers Association.
The notice must be served 90 days before the school year, term, or semester when the decrease is to take effect.
The institution must send notice to the Director of Private Schools by personal delivery or registered mail within the same 90-day period and furnish the Regional Superintendent of the Private Schools in the area.
The notice must state:
- (1) the current fees or charges and the amount of decrease,
- (2) the reason or reasons for the proposed decrease, and
- (3) the semester/term or school year when the decrease is proposed to take effect.

No opposition authorizes the decrease

Section 5 provides that if no opposition is presented to the Director of Private Schools by any interested party within 30 days after notice is received, the decrease is considered authorized.

Opposition triggers Director determination

If opposition is presented within the 30-day period, the Director of Private Schools must:
- notify the interested parties,
- give them opportunity to be heard and to present evidence, and
- decide the matter at least 30 days before the school year, term, or semester when the decrease is to take effect.
The Director’s decision on the decrease is final.

Secretary’s reasonableness review and extraordinary causes

Section 6 requires that on appeal from an increase decision, the Secretary of Education must determine the reasonableness of the increase by considering the factors mentioned in Section 3(c).
Section 7 applies when there are extraordinary causes, including:
- fluctuations in currency,
- strikes,
- other unforeseeable occurrences.
Under Section 7, the timelines are shortened:
- the 180-day period in Section 3(a) becomes 90 days;
- the 30-day period in Section 3(b) becomes 15 days;
- the 100-day period in Section 3(c) becomes 60 days.
Section 7 requires that the Secretary’s decision in case of appeal be promulgated at the earliest possible time so interested parties can adjust to new circumstances.

Rules of procedure and evidence; fee trust fund

Section 8 provides that in all proceedings under the Act, the technical rules of procedure and evidence do not apply.
Section 9 requires that all fees except tuition be constituted into a trust fund spent for the specific purposes for which they are collected.
Section 9 allows:
- the unexpended balance of each fee annually to be used to cover deficits in other fees at any unexpended balance of the fund at the end of every five years.
Section 9 further requires that the unexpended balance at the end of every five years be constituted into a scholarship fund for poor but deserving students administered jointly by:
- school administration,
- faculty, and
- student government.
Section 9 prohibits school administrations from holding benefit performances, movies, concerts, dramatic presentations, games, and/or shows of whatever kind or nature, whether for charity or otherwise.

Implementing rules and effectivity

Section 10 directs the Secretary of Education, in consultation with the President of:
- Philippine Association of Colleges and Universities,
- Catholic Educational Association of the Philippines,
- Association of Christian Schools and Colleges,
- Philippine Association of Private Schools and Colleges,
- National Confederation of Faculty Organizations, and
- Philippine Confederation of Parents-Teachers Association,
  to promulgate rules and regulations within thirty days after the effectivity of this Act.
Section 10 provides that the rules and regulations become effective upon publication in the Official Gazette and in two newspapers of general circulation in the Philippines.
Section 13 provides that the Act takes effect upon its approval—August 31, 1970.

Criminal penalties for violations

Section 11 makes violations punishable when any person violates:
- provisions of the Act,
- rules and regulations promulgated under the Act,
- any final decision rendered under the Act, or
- any agreed settlement under Section 3(c).
Section 11 imposes the penalty of a fine of PHP 2,000 or imprisonment of one year, or both, at the discretion of the court.
Section 11 designates the responsible persons:
- the Chairman, President or Head of the educational institution if the violator is a corporation; or
- the person acting for and on behalf of the educational institution who directly commits the violation in other cases.
Section 11 provides that if the violator is a public official, the same penalty is imposed without prejudice to any administrative action that may be taken.

Repeal of inconsistent laws

Section 12 repeals all Acts, parts of Acts, executive orders, rules, and regulations inconsistent with Republic Act No. 6139.