THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
First Regular Session 
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S E N A T E  
S. 'No. 
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Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Our educational system has been largely affected by the worsening 
condition of the economy. Last school year, some 376 private schools increased 
their tuition fees. For school year 2001-2002, 400 out of 1,189 private colleges 
and universities (HEls) nation wide raised their tuition fees. This accounts to 34% 
of the total number of HEls, nationwide. Ninety-three of these schools or 23.25% 
of schools that raised their tuition fees are in Metro Manila. The average tuition 
fee increase ranges from 10% in Region II and CAR to 15% in Region I and 
Region VII. In NCR, the average percent increase is 12%. 
Public colleges and universities charge lower tuition fees because they 
receive subsidy from the government. However, public colleges and universities 
are also in a tight financial fix because of drastic cuts in their budget in the last 
couple of years. This was brought about by the economic problems saddling the 
country and the policy of the government to reduce subsidy in higher education in 
order to increase the share of basic education. This seems to run counter with 
the Constitutional mandate that the government should provide quality and 
accessible education to all. 
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This bill therefor aims to provide affordable access to quality education by 
rationalizing and/or reasonably regulating tuition fee rates increases in all 
educational institutions and instituting an effective and rational mechanism for 
fixing the tuition fee rate. It proposes the creation of Tuition Fee Rationalization 
Council, envisioned to be a multi-sectoral body to serve as the highest policy- 
making body on matters pertaining to tuition fee rates and other increases or 
adjustments in school fees. 
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SERGIO OSMERA 111 
Senator 


THIRTEENTH CONGRESS QF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
s:No. 
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Introduced by Senator S. R. OsmeAa I l l  
AN ACT 
RATIONALIZING AND REGULATING TUITION AND OTHER SCHOOL FEES 
IN ALL HIGHER AND BASIC EDUCATION INSTITUTIONS, CREATING A 
TUITION FEE RATIONALIZING COUNCIL, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. rifle.- This Act shall be known as the “Tuition Fee 
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Rationalization Act of 2004.” 
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SEC. 2. Declarafion of Policy. - Section I, 
Article XIV of the 1987 
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Constitution mandates the protection and promotion of the right of all citizens to 
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quality and affordable education at all level and that the State shall take 
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appropriate steps to make such education accessible to all. Section 13, Article II, 
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further recognizes the role of the youth in nation-building and promotes and 
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protects their physical, moral, spiritual, intellectual and social well-being. In view 
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a. To promote affordable access to quality education by rationalizing 
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and/or reasonably regulating tuition fee rate and increases in all educational 
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institutions including other fees; 
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b. To provide all educational institutions with accredited program greater 
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flexibility and autonomy in tuition fee rate fixing and/or tuition fee increase 
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adjustments; 
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c. To establish a Tuition Fee Rationalization Council which is envisioned 
to be a multisectoral body that shall serve as the highest policy-making body on 
matters pertaining to tuition fee rates and other increases or adjustments in 
school fees; and 
d. To provide an effective and rational mechanism for fixing the tuition 
fee rates and adjustments in other school fees in all educational institutions 
including those to be adopted by the boards of State Universities and Colleges 
that is acceptable to concerned stakeholders taking into account socio-economic 
and other considerations and safety nets. 
SEC. 3. Coverage. - a) Tuition Fees- As a general rule, public and 
private academic and technical institutions shall be allowed to impose tuition fee 
increases and/or adjustments without any prior consultations, on incoming 
freshmen students in the secondary and tertiary level, and in the first and fifth 
grade in the elementary level only. There shall be no tuition fee increases and/or 
adjustments in all other year levels. 
The tuition fee increases which may be allowed to be imposed shall not 
exceed fifteen percent (1 5%) of prevailing rates: Provided, however, That any 
proposed tuition fee increase and/or adjustment in excess of the stipulated 
percentage affecting not only the segment of students stated above but all other 
years level including those to be imposed by State universities and Colleges shall 
be subject to the approval of the National Tuition Fee Rationalization Council 
and/or its regional council having jurisdiction and on a case-to-case basis. 
b) Other school fees- The amount of other school fees to be collected from 
students in the freshmen level of the secondary and tertiary institutions, and from 
the first grade and fifth in the elementary level shall in no way be more than 
twenty-five percent (25%) of the amount collected as tuition fee for the semester 
to which the student is currently enrolled: Provided, further, That an imposition of 
more than fifteen percent (15%) in tuition fees and twenty-five percent (25%) in 
the case of miscellaneous fees may be allowed after the concerned schools shall 
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have conducted thorough consultations and hearings, and the examination of 
financial records and the determination of the distinct requirements and 
conditions of schools shall have been assessed by the Council. 
c. Exemptions - Schools and/or courses classified under Level I l l  
Accreditation duly recognized by the Commission on Higher Education (CHED), 
the Department of Education (DepEd) and the Technical Education and Skills 
Development Authority (TESDA) as the case may be, and whose categorization 
standards are duly affirmed by the major association of private and state 
institutions shall enjoy autonomy in fixing the rates of their tuition fees and/or any 
rates increase or adjustment with respect to the accredited programs/courses 
only and subject to minimal and reasonable guidelines from the Council. 
SEC. 4. Definition of Terms. - As used in this Act, the following terms 
shall mean: 
a. Student- shall refer to any person enrolled in school in the elementary, 
secondary, and tertiary levels including those enrolled in vocational and technical 
education. 
b. School- shall refer to any academic institution of learning, public or 
private, offering any or all courses in the above mentioned levels. 
c. Board- shall refer to the governing board of the school, such as the 
board of directors, trustees or regents, which represents its highest policy-making 
body. 
d. Council- shall refer to the Tuition Fee Rationalization Council which 
shall serve as the highest policy-making body on matters pertaining to tuition and 
other school fees and which shall have regional counterparts for efficient rate 
fixing and determination. 
e. Tuition- shall refer to the fee representing direct costs of instruction, 
training and other related activities, and the use of school facilities. 
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f. Other school fees- shall refer to fees which cover other necessary costs 
supportive of instruction, including but not limited to medical and dental, athletic, 
library, laboratory, and citizens military training (CMT) fees. 
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g. Te:rtiary- shall refer to the higher learning level after high school which 
includes those offering baccalaureate degrees or four (4) to five (5) year courses 
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and/or techhical-vocational programs. 
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h. Sdcondary- shall refer to the middle segment in the educational system 
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comprising ~a four-year program after attendance from elementary or grade 
school levell. 
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i. Glade School- shall pertain to the level of education which constitutes 
four (4) yedrs of primary learning and two (2) or three (3) years of intermediate 
training usu!ally for children with age levels of 6-1 3 years. 
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I I I I  Accreditation- shall refer to a classification conferred to an 
institution qnd/or any of its program/courses by a recognized accrediting body 
based on ckrtain quality indicators and standards duly recognized by the DepEd, 
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the CHED br the TESDA as the case may be, and prescribed by the national 
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accrediting brm of the major association of private and state institutions. 
SEC 
5. Establishment of the National Tuition Fee Rationalization 
Council ( J 
,TFRAC) and ifs Regional Counferpart. - Within thirty (30) days 
after the eifectivity of this Act, the National Tuition Fee Rationalization Council 
(NTFRAC) shall be established to be composed of the following: the Chair of the 
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CHED as Jhair; the Secretary of the DepEd as co-chair; the Director-General of 
the TESDA as vice-chair; and with the following as members: representatives of 
the House of Representatives’ Committee on Higher and Technical Education 
and the Committee on Basic Education and Culture, the Senate Committee on 
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Education, the National Economic and Development Authority (NEDA), and the 
Philippine Association of State Universities and Colleges; one (1) representative 
each from these sectors: parent, legitimately recognized students’ organizations, 
leading associations of private higher and basic education institutions, major 
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aggrupation of technical education institution, faculty associations as well as 
other sectors which may be deemed indispensable by the Council. 
A regional Tuition Fee Rationalization Council (RTFRAC) shall also be 
established in all the regions of the country whose membership shall include the 
DepEd, the 
CHED, the TESDA, and NEDA regional directors, and 
representatives from the provincial school boards, faculty associations student 
councils, parent-teachers association (PTA), form the association of private 
schools, and from a recognized association of state institution. 
The manner and procedure of selecting and appointing representatives 
and/or members of the Council from the different sectors other than those directly 
identified shall be made jointly by the Chairperson of the CHED, the Secretary of 
the DepEd, and the Director-General of the TESDA based on a criteria that shall 
be instituted for the purpose. . 
SEC. 6. Office and Expenditure. - Every member of the Council shall 
serve in an ex-officio capacity without compensation from the government except 
for travel and other actual expenses incurred in the performance of their duties 
and responsibilities. 
SEC. 7. Administration and Enforcement. - After due investigation and 
proper observance of due process, any person, natural or juridical, found wilfully 
violating any provisions of this Act and its implementing rules, shall be subjected 
to the appropriate administrative sanctions, including the suspension or 
revocation of the school’s license to operate, disqualification from enjoying tuition 
fee rate increases or adjustment, and/or the imposition of reasonable penalties 
and administrative fines. 
SEC. 8. Penal Provisions. - Any person who shall wilfully violate or 
commit any act intended to defeat any provision of this Act and its implementing 
rules, shall, upon conviction, be punished by a fine of not less than Fifty thousand 
pesos (P50,OOO.OO) nor more than One hundred thousand pesos (PI 00,000.00) 
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or imprisonment of not less than one (1) year nor more than five (5) years, or 
both at the discretion of the court. 
Any school found likewise to have violated the provisions of this Act and 
its implementing rules shall be fined the amount of not less than Five hundred 
thousand pesos (P500,OOO.OO) but not more than One million pesos 
(PI ,000,000.00) 
Pursuant thereto, the DepEd, the CHED, and the TESDA shall be 
empowered to investigate violations of this Act as well as the implementing rules 
and regulations and other issuances appurtenant thereto, and for this purpose 
shall have the power to issue summons, writs, orders, subpoena and subpoena 
duces tecum to secure the attendance of witnesses and the production of 
documents in connection with the charges presented. 
SEC. 9. Implementing Rules and Regulations. - Upon the approval of 
this Act and within the sixty (60) days after the Council shall have been 
constituted, the Council shall formulate the rules and regulations (IRR) to 
implement the provisions of this Act. Public hearings and consultation may be 
conducted to facilitate the drafting of the IRR. 
SEC. I O .  Separability Clause. - In case any provisions of this Act or 
portion thereof is declared unconstitutional by a competent court, other 
provisions shall not be affected thereby. 
SEC. 
11. Repealing Clause. - Any provision of laws, order, 
proclamations, rules and regulations, or part thereof, which are inconsistent with 
any provision of this Act are hereby repealed and modified accordingly. 
SEC. 
12. Effectivity Clause. - This Act shall take effect (15) days 
following its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved, 
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