Philippines: Tuition fee hike moratorium expires in 2024, what happens next
What the law says on 'socialised tuition' fee scheme in state colleges and universities
Manila: The mandatory freeze on tuition fee increases in Philippine state universities and colleges (SUCs) is set to expire this year, 2024.
Would this mean a tuition fee hike? It’s unclear at this point.
The five-year moratorium on tuition fee increases in SUC forms part of the transitory provisions of Republic Act 10931 (“Universal Access to Quality Tertiary Education Act”) passed in 2017.
During the pandemic, there were about 1.3 enrollees in SUCs (2020 data), 38.78 per cent of total university population of the Asian country; private higher education institutions had 1.8 million enrollees during the 2019-2020 school year.
Under this same law, however, those who are financial capable are mandated to pay fees even if they are enrolled in SUCs.
Socialised tuition
Most SUCs are mandated to craft a “socialised tuition” and some sort of financial assistance programme for poor but deserving students.
Under this scheme, students deemed to have financial capacity are required to pay tuition fees in SUCs – the rate varies depending on certain metrics set by each university board.
During a Senate hearing in October, a budget gap amounting to 7 billion pesos ($123.8 million) for SUCs was highlighted. The reason: increased SUC student enrollment beyond the allocated funds.
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Dr. Tirso Ronquillo of Batangas State University and the Philippine Association of State Universities and Colleges (PASUC) noted during the hearing the discrepancies between enrollment projections and budget allocations, and cited the need for “alignment” between SUCs and the Department of Budget and Management (DBM).
The scores indicated that students achieved Level 1a to 1b in mathematics, reading, and science, signifying proficiency below the minimum standard in all three subjects.
The Senate heard that about 70 per cent of SUCs thought it best to decide on their own and allow so many enrollees in excess of the budget allocated by Congress for free tertiary education per SUC.
Deficit
It’s unclear why the SUC budget was based on 2022 enrollment instead of the projected post-pandemic SUC population for 2023. In terms of annual breakdown, SUCs faced a deficit of approximately 2.7 billion pesos ($47.76 million) in 2022, rising to over 4.2 billion pesos ($74.3 million) in 2023.
The Senate hearing was also told that while 29 per cent of the SUCs adhered to their budget, 71 per cent of them exceeded their allocation. One of the universities that exceeded its budget is the University of the Philippines (with 17 campuses), which spent Php607 million beyond its 2022 budget, the Senate heard.
This 2024, Philippine media reported that SUCs got a total of 128 billion pesos ($2.26 billion), according to the 2024 General Appropriations Act (GAA), 19.6 per cent higher than the 107 billion pesos ($1.89 billion) in 2023 and the 100 billion pesos initially earmarked for SUCs in the proposed spending plan for 2024.
Free Wi-Fi at SUCs
A Php2.5 billion ($44.2 million) budget was earmarked for 2024 to fund the free Wi-Fi connectivity in public places and SUCs programme, with a target of 50 broadband sites in 82 provinces, according to the DBM.
Free higher education in the Philippines: What the law says
RA 10931 (Section 4) prescribes free higher education in SUCs and LUCs to “All Filipino students who are either currently enrolled at the time of the effectivity of this Act, or shall enroll at any time thereafter, in courses in pursuance of a bachelor's degree, certificate degree, or any comparable undergraduate degree in other school fees for units enrolled in: Provided, that they pass the entrance examination and other admission and retention requirements of the SUCs and LUCs.”
More importantly, all SUCs and LUCs are mandated to “create a mechanism to enable students with the financial capacity to pay for their education in the SUC and LUC to voluntarily opt out of the tuition and other school fees subsidy or make a contribution to the school”.
Under the same law, “SUCs and LUCs must report the tuition payments and contributions collected from these students to the CHED: Provided, finally, That the amount required to implement the free tuition and other school fees in SUCs and LUCs shall be determined by the respective governing boards of SUCs and LUCs based on the projected number of enrollees for each academic years, which shall be the primary factor in computing the annual proposed budget of SUCs and, in the case of LUCs, the CHED for such purpose.”
“This shall in turn serve as the baseline during the preparation of the annual National Expenditure Program (NEP) by the Department of Budget and Management (DBM)."
Free tuition for TVET post-secondary education
Section 5 of RA 10931 also prescribes free Technical and Vocational Education and Training (TVET) in post-secondary technical-vocational institutions (TVIs).
The law states: “All Filipino students who are currently enrolled at the time of the effectivity of this Act, or shall enroll at any time thereafter in any post-secondary TVET leading to non-degree certificate or diploma programs offered by any state-run TVI under the TESDA shall be exempt from paying tuition and other school fees: Provided, That all state-run TVIs shall create a mechanism to enable students with the financial capacity to pay for their education in the TVI to voluntarily opt out of the tuition and other school fees subsidy or make a contribution to the TVI. TVIs must report the tuition payments and contributions collected from these students.”
The amount required to implement the free tuition and other school fees in state-run TVIs shall be determined by the governing board of the TESDA based on the projected number of enrollees for each course, which shall be the primary factor in computing for the annual proposed budget of the TESDA for such purpose. This shall in turn serve as the baseline during the preparation of the annual NEP by the DBM.”