AN ACT PROVIDING GOVERNMENT ASSISTANCE TO STUDENTS AND TEACHERS IN PRIVATE EDUCATION AND APPROPRIATING FUNDS THEREFOR

Case Overview and Summary

Summary of Republic Act No. 6728 (Amended by RA 8545)

Declaration of Policy (Section 2)
- Promote quality education accessible to all Filipinos
- Recognize complementary roles of public and private educational institutions
- Provide mechanisms to improve quality in private education

Criteria for Assistance (Section 3)
- Based on tuition fees, socio-economic needs, school performance, student qualifications and needs, geographic spread, and student population
- Preference for students from families with income not more than ₱36,000 or as determined by the Council
- Assistance extended only to Filipino citizens

Forms of Assistance (Section 4)
- Tuition fee supplements for private high school students (Section 5)
- High School Textbook Assistance Fund (Section 6)
- Expansion of Educational Service Contracting (ESC) Scheme (Section 7)
- Voucher system of Private Education Student Financial Assistance (PESFA) Program (Section 8)
- Scholarship grants to valedictorians and salutatorians (Section 8)
- Tuition fee supplements for private college and university students (Section 9)
- Education Loan Fund (Section 11)
- College Faculty Development Fund (Section 13)

Tuition Fee Supplement for Private High School Students (Section 5)
- For schools charging less than ₱1,500 per year: Government voucher of ₱290, reimbursed within 60 days
- For schools charging above ₱1,500 per year: No assistance
- 70% of subsidized amount for salaries and benefits, 20% for facilities and operations

High School Textbook Assistance Fund (Section 6)
- Established in DECS for private schools charging less than ₱1,500 per year
- For purchase of approved high school textbooks

Expansion of ESC Scheme (Section 7)
- DECS to contract with private schools for excess public school students
- DECS to contract with private schools in areas without public high schools
- Assistance not to exceed per student cost in public high schools

Assistance to College Freshmen (Section 8)
- PESFA Program: 10-25% of freshmen to receive full/partial scholarships and allowance
- Tuition waivers: 5% of freshmen to receive full/half tuition waivers
- Allowance for valedictorians, salutatorians, and first honorable mentions

Further Assistance to Private College/University Students (Section 9)
- For schools charging ₱80 or less per unit: Voucher equivalent to tuition fee increase, capped at ₱12 per unit
- For schools charging above ₱80 per unit: No assistance, but 5% tuition waivers required
- Accredited programs charging less than ₱80 per unit: Voucher for tuition increase

Consultation (Section 10)
- Consultations with stakeholders required for tuition fee increases
- Audited financial statements to be made available

Education Loan Fund (Section 11)
- "Study Now, Pay Later Plan" for educational loans
- Repayment after 2 years of employment, with interest not exceeding 12% per annum
- Social Security System to provide low-interest educational loans

Limitations (Section 12)
- Benefits not applicable if student fails for one school year or enrolls outside home region (unless priority course not offered locally)

College Faculty Development Fund (Section 13)
- Scholarships for graduate degrees and non-degree workshops/seminars for private college/university faculty
- 3 years return service for every year of scholarship

Program Administration/Rules and Regulations (Section 14)
- State Assistance Council (SAC) for policy guidance, monitoring, and rule-making
- DECS for day-to-day administration and implementation

Appropriations (Section 15)
- Initial funding from DECS appropriations, coconut levies, travel taxes, Sugar Regulatory Administration/Philippine Coconut Authority funds, DBP income, Overseas Welfare Fund, and other sources
- Not to exceed ₱500 million for Fiscal Year 1989

Penalties (Section 16)
- Institutions violating the Act may be barred from participating in programs
- Administrative and criminal charges may be filed
- Failure to provide audited financial statements forfeits right to increase tuition fees