Monday, May 29, 2017

CHED Approves Increase in Tuition and Other Fees for 268 Private HEIs Nationwide

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The Commission on Higher Education (CHED) released today the approved applications of 268 private higher education institutions (HEIs) in the country to increase their tuition and other school fees for academic year 2017-2018.

The approved applications represent 16 percent of the total number of 1,652 private HEIs in the country. This is 36 HEIs lower than the reported 304 HEIs last academic year.Of the 268 private HEIs, 262 will increase tuition while only 237 will increase other school fees.

Across the private HEIs with approved increases in either tuition or other school fees, the average increase in tuition is 6.96% or the equivalent of PhP86.68 per unit, while increase in other school fees is 6.9% or PhP243.

Considering the total population of private HEIs, the average increase in tuition or other school fees is about 1%. The increases vary depending on the HEI and the region.

In regions with the highest number of HEIs, the average per unit increase in tuition is PhP119.55 or 4.75% for NCR, PhP49.07 or 3.05% for Region IV, and PhP49.50 or 8.64% for Region III. For other school fees, the increases are PhP49.82 or 5.28% for NCR, PhP408.70 or 5.90% for Region IV, and PhP974.26 or 10.73% for Region III.

In deciding on the reasonableness of tuition and other school fees, CHED is guided by: First, Section 42 of Batas Pambansa Blg. 232 or the “Education Act of 1982” which provides that, “each private school shall determine its rate of tuition and other school fees or charges… subject to rules and regulations promulgated by the Ministry of Education, Culture and Sports” (now DepEd, TESDA and CHED).

Second, Republic Act 6728 or the “Government Assistance to Students and Teachers in Private Education Act”, which requires HEIs, for every incremental tuition increase, to allocate 70% of the increase for the payment of salaries, wages, allowances and other benefits of teaching and non-teaching personnel; 20% for the improvement and/or acquisition of facilities, or modernization of buildings, equipment, libraries, laboratories and other similar facilities and the payment of other costs of operation; and 10% for the return on investment if they are stock corporations, otherwise, the remainder is to be utilized for the operation of the institution.

Third, CHED Memorandum Order (CMO) No. 3, series of 2012 or the “Enhanced Policies, Guidelines and Procedures Governing Increases in Tuition and Other School Fees, Introduction of New Fees, and for Other Purposes,” which takes into account the following factors: regional inflation rate, financial standing of the institution, financial capacity of the general studentry, impact of force majeure or calamities, quality track record of the school, and the mission and vision of the institution.

Fourth, the “education deflator”, which measures the average cost of providing education services based on the regional inflation rate. The education deflator, or the Regional Inflation Rate, is supplied by the Philippine Statistics Authority (PSA). The PSA carried out special computations for the implicit price index of education for CHED in its evaluation of applications for tuition and other school fees increase.

CHED’s approach to the issue of tuition is holistic. In the light of contending concerns and interests in society, there is a need to balance access issues with sustainability of educational institutions. For its part, CHED ensures that HEIs meet the guidelines provided by law, especially the requirement of consultation, the proper allocation of tuition fees, and strict adherence with the processes that seek to make tuition and other school fee increases transparent, reasonable and affordable.

Issued this 29th of May 2017 at the Higher Education Development Center Building, C.P. Garcia Avenue, Diliman, Quezon City.

For the Commission:

Patricia B. Licuanan, Ph.D.

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