Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE No, 354

Introduced by Reps. NERI J. COLMENARES, CARLOS ISAGANI T. ZARATE,
ANTONIO L. TINIO and TERRY RIDON

AN ACT.
IMPOSING A THREE-YEAR MORATORIUM ON TUITION AND OTHER FEE
INCREASES ON ALL EDUCATIONAL INSTITUTIONS

EXPLANATORY NOTE

Among the basic needs given importance by most Filipino families is education. This is why, even
if they can barely eat three meals a day, parents and working students often forego other needs just
to pay for their education.

In such a situation, the meteoric and unchecked rise of school fees in practically all private and
public educational institutions in the country further burdens our already suffering populace

Private education, by virtue of the deregulation policy mandated by Batas Pambansa 232, has
tumed into a very profitable business indeed. From 637 private higher education institutions
(HEIs) in 1991, the numbers increased to 1,523 in 2008. In fact, several private HEIs have been
consistently included in the Top 1,000 Corporations of the country. The top five
school-corporations eared, in a span of six years, P15.43 billion in gross revenues and P3.45
billion in net income.

Unfortunately, the government agencies tasked to protect the public against schools engaged
in profiteering activities have failed miserably, as increases in tuition, miscellaneous and other
fees, some of which are collected redundantly, continue without regard to the suffering of the
students and their parents.

In 2013, while state universities and colleges mulled the possibility of a imposing a tuition
moratorium following the suicide of a cash-strapped University of the Philippines student, CHED
approved 354 or 78% of tuition increase petitions.

‘The average tuition hike, according to CHED, costs an additional P37.45 per unit or P561.75 per
15 units. The 8.5% average increase is almost three times higher than the prevailing inflation rate
in the country.


This year, NCR schools increased their tuition at an average of P64.04 or 6.79% per unit. Regions
with the highest increases are Region I with P34.10 per unit or 11.12%, Region II with P31.26 or
12.25%, and Region V with 44.77 or 11.83%, On top of these are various miscellaneous and other
school fees ranging from hundreds to thousands of pesos. These include exorbitant, redundant fees
like power charges, installment fee, copier fees and infrastructure maintenance fees.

Considering how important education is for our people and how costly it has become for them, it
will only be fair for government to ensure our citizen’s right to education by imposing a three-year
‘moratorium on all kinds of fee inereases, whether tuition or other school fees, on all schools that
have registered a profit in the previous year. This is just to give our people some kind of relief,
considering that they have yet to feel the promised social payback from higher taxi

By the end of the said moratorium, it is hoped that the government will already remedy the defects
of a deregulated education sector and provide the proper guidelines on school fee increases so that
the rights of students and parents are respected and properly observed.

In view of the foregoing, immediate approval of this measure is sought.

Approved,

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Rep. NERI JAVIER COLMENARES Rep. CARLOS ISAGANI T. ZARATE

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 354

Introduced by Reps. NERI J. COLMENARES, CARLOS ISAGANI T. ZARATE,
ANTONIO L. TINIO and TERRY RIDON

AN ACT
IMPOSING A THREE-YEAR MORATORIUM ON TUITION AND OTHER FEE
INCREASES ON ALL EDUCATIONAL INSTITUTIONS

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Declaration of Basic Poligy- Icis the policy of the state to promote quality
education that is accessible to all and to establish, maintain and support a complete, adequate and
integrated education system relevant to the needs of the Filipino people.

SECTION 2. Definition of Terms — as used in this Act, the following terms shall mean:

(a) “Private Educational Institutions” — any school, college, university, company or
corporation authorized by the state to grant education, either formal ot informal; technical or
non-technical; vocational or non-vocational; and whose subsistence relies significantly in it gaining
profits, dividends or stocks from giving such.

(b) “Tuition” ~ is used to refer to the charges that all students pay to attend an educational
institution, These are composed of specific types: operating fees, building fees, services and
activities fees and technology fees.

(©) “Miscellaneous and other school fees”- additional charges other than tuition collected
for specific actual services rendered to students, as may be identified by the school authorities and
certified by the recognized student council and faculty association such as but not limited to,
medical and dental, athletic, audio-visual, guidance, insurance, laboratory fee, laboratory
deposit, library fee, school publication, registration, and such other fees that refer to services

SECTION 3. Moratorium on School Fees - The Department of Education (DepEd) Commission
on Higher Education (CHED), and Technical Education and Skills Authority (TESDA) are hereby
mandated to impose a three year moratorium on any school fee increase, whether it be tuition,
miscellaneous and other schoo! fees on all public and private educational institutions.

SECTION 4. Exemptions - A private educational institution may apply for an increase in tuition

3


or other school fees, following existing rules and guidelines implemented by the DepEd, CHED
and TESDA, provided that on the year preceding the application for fee increases, said
institution posted incurred net losses as reflected in its complete annual financial statement, a copy
of which should be filed together with the application for exemption.

SECTION 5. Penalty Clause - Any educational institution found in violation of this Act shall be
punished with a fine of NOT LESS THAN 100,000 pesos (100,000 Php) and NOT MORE
‘THAN 500,000 pesos (500,000 Php) or imprisonment of its officials OF NOT MORE THAN
SIX (6) YEARS or both, in the discretion of the court.

‘Misrepresentation or misdeclaration of assets, incomes and liabilities shall be prima facie evidence
of violations this Act.

SECTION 6. Repealing Clause — All laws, presidential decrees, executive orders, rules and
regulations or parts thereof which are inconsistent with the provisions of this Act are her
repealed or modified accordingly.

SECTION 7. Separability Clause — If any part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected shall continue to be in
full force and effect.

SECTION 8. Effectivity — This Act shall take effect fifteen (15) days after its publication in ewo
(2) national newspapers of general circulation.

Approved,