REPUBLIC ACT NO.

6728


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

Section 1. Title. This Act shall be known as the "Government Assistance To Students and Teachers In
Private Education Act."
.

Sec. 2. Declaration of Policy. It is declared policy of the State in conformity with the mandate of the
Constitution, to promote and make quality education accessible to all Filipino citizens. The State also
hereby recognizes the complementary roles of public and private educational institutions in the
educational system and the invaluable contribution that the private schools have made and will make
to education. For these purposes, the State shall provide the mechanisms to improve quality in
private education by maximizing the use of existing resources of private education, recognizing in the
process the government responsibility to provide basic elementary and secondary education as having
priority over its function to provide for higher education. chan robles virtual law library
Sec. 3. Criteria for Assistance. The programs for assistance shall be based on a set of criteria which
shall include, among others, tuition fees charged by the schools, the socio-economic needs of each
region, overall performance of the schools, the academic qualifications and the financial needs of the
students, as well as the geographic spread and size of student population.chan robles virtual law
library
In addition to the foregoing criteria, within such reasonable time as the State Assistance Council may
determine, student grantees under the Private Education Student Financial Assistance Program shall
be enrolled in schools which have accredited programs or are applying for accreditation as
determined by the Federation of Accrediting Agencies of the Philippines, namely: The Philippine
Association of Accredited Schools, Colleges and Universities, the Association of Christian Schools and
Colleges Accrediting Agency, and the Philippine Association of Colleges and Universities Commission
on Accreditation. chan robles virtual law library
Preference shall be given to students whose family income is not more than thirty six thousand pesos
(P36,000) or such amount as may be determined by the Council, as defined hereinafter.cralaw
For purposes of this Act, programs of assistance to students of private post-secondary education shall
likewise be extended to students of community colleges and students in non-degree programs
including vocational and technical courses. Implementation of the program shall encourage students
to undergo tertiary education in the same region where their families reside. chan robles virtual law
library
The programs of assistance under this Act shall be extended only to students who are citizens of the
Philippines.cralaw
Sec. 4. Forms of Assistance. Assistance to private education shall consist of:
(1) Tuition fee supplements for students in private high schools, including students in vocational and
technical courses;
(2) High School Textbook Assistance Fund: Provided, That students in public schools shall be provided
a comprehensive textbook program under the Secondary Education Development Program
(SEDP); chan robles virtual law library
(3) Expansion of the existing Educational Service Contracting (ESC) Scheme;
(4) The voucher system of the Private Education Student Financial Assistance Program (PESFA); chan
robles virtual law library
(5) Scholarship grants to students graduating as valedictorians and salutatorians from secondary
schools;
(6) Tuition fee supplements to students in private colleges and universities;
(7) Education Loan Fund; and chan robles virtual law library
(8) College Faculty Development Fund.

Sec. 5. Tuition Fee Supplement for Students in Private High School. (1) Financial assistance for
tuition for students in private high schools shall be provided by the government through a voucher
system in the following manner:

(a) For students enrolled in schools charging less than one thousand five hundred pesos (P1,500) per
year in tuition and other fees during school year 1988-1989 or such amount in subsequent years as
may be determined from time to time by the State Assistance Council: The Government shall provide
them with a voucher equal to two hundred ninety pesos (P290.00): Provided, That the student pays in
the 1989-1990 school year, tuition and other fees equal to the tuition and other fees paid during the
preceding academic year: Provided, further, That the Government shall reimburse the vouchers from
the schools concerned within sixty (60) days from the close of the registration period: Provided,
furthermore, That the student's family resides in the same city or province in which the high school is
located unless the student has been enrolled in that school during the previous academic year.
(b) For students enrolled in schools charging above one thousand five hundred pesos (P1,500) per year
in tuition and other fees during the school year 1988-1989 or such amount in subsequent years as may
be determined from time to time by the State Assistance Council, no assistance for tuition fees shall
be granted by the Government: Provided, however, That the schools concerned may raise their tuition
fees subject to Section 10 hereof. chan robles virtual law library

(2) Assistance under paragraph (1), subparagraphs (a) and (b) shall be granted and tuition fees under
subparagraph (c) may be increased, on the condition that seventy percent (70%) of the amount
subsidized allotted for tuition fee or of the tuition fee increases shall go to the payment of salaries,
wages, allowances and other benefits of teaching and non-teaching personnel except administrators
who are principal stockholders of the school, and may be used to cover increases as provided for in
the collective bargaining agreements existing or in force at the time when this Act is approved and
made effective: Provided, That government subsidies are not used directly for salaries of teachers of
non-secular subjects. At least twenty percent (20%) shall go to the improvement or modernization of
buildings, equipment, libraries, laboratories, gymnasia and similar facilities and to the payment of
other costs of operation. For this purpose, school shall maintain a separate record of accounts for all
assistance received from the government, any tuition fee increase, and the detailed disposition and
use thereof, which record shall be made available for periodic inspection as may be determined by the
State Assistance Council, during business hours, by the faculty, the non-teaching personnel, students
of the school concerned, the Department of Education, Culture and Sports and other concerned
government agencies.chanrobles virtual law library



Sec. 6. High School Textbook Assistance Fund. There shall be established in the Department of
Education, Culture and Sports (DECS) a High School Textbook Assistance Fund, so that an assistance on
a per student basis shall be given to private schools charging less than one thousand five hundred
pesos (P1,500.00) for 1988-1989 per year, or such amount in subsequent years as may be determined
from time to time by the State Assistance Council, exclusively for the purchase of high school
textbooks, in support of the implementation of the Secondary Education Development Program:
Provided, That such fund shall not be used for the purchase of books that will advance or inhibit
sectarian interest: Provided, further, That such textbooks are included in the list approved by the
Department of Education, Culture and Sports.

Sec. 7. Expansion of the Existing Educational Service Contracting (ESC) Scheme. (a) The Department
of Education, Culture and Sports (DECS) shall continue to enter into contracts with private schools
whereby the Government shall shoulder the tuition and other fees of excess students in public high
schools who shall enroll under this program. It shall settle all outstanding obligations before
contracting new obligations.chan robles virtual law library
(b) The Department shall also enter into contract with private schools in communities where there are
no public high schools, in which case the Department shall shoulder the tuition and other fees of
students who shall enroll in said private schools. The number of such schools assisted by the program
will be increased every year such that all schools in this category will be assisted within four (4) years
from the promulgation of this Act.cralaw
(c) The amount of assistance to be given by the Government under this Section shall not exceed that
determined as the per student cost in public high schools.chan robles virtual law library
(d) The Department shall fully pay the subsidized amount to participating schools not later than the
end of the schoolyear, unless the delay incurred is attributable to the participating schools.cralaw
(e) The amount of assistance shall be allocated and distributed among the fourteen (14) regions in
proportion to the total population as well as the high school age population for the first school year:
Provided, That starting school year 1990, an equalization scheme shall be implemented by the State
Assistance Council.chan robles virtual law library
Sec. 8. Assistance to College Freshmen. (a) The Voucher System of Private Education Student
Financial Assistance (PESFA) Program. The existing Private Education Student Financial Assistance
(PESFA) Program which covers degree and vocational/technical courses shall be expanded so that a
minimum of ten percent (10%) for the school year 1989, fifteen percent (15%) for the school year
1990, twenty percent (20%) for the school year 1991, twenty-five percent (25%) for the school year
1992 and thereafter, of all enrolling first year students can benefit from a full or partial scholarship,
plus an allowance. Such financial assistance shall be granted to deserving underprivileged students,
who shall be selected on the basis of family income, geographic spread and results of competitive
examinations to be given by the Department of Education, Culture and Sports to students in all
secondary schools. The program shall be equitably allocated to provinces and cities in accordance
with regional and national plans to priority courses as determined by the Department of Education,
Culture and Sports in coordination with the National Economic Development Authority (NEDA). The
priority courses shall be submitted to Congress at the start of this program and any changes thereon
periodically.cralaw
For purposes of this Act, an underprivileged student shall refer to a student whose annual gross
income, if any, and that of the combined annual gross income of his parents do not exceed thirty-six
thousand pesos (P36,000). chan robles virtual law library
(b) Tuition Waiver. Private colleges and universities shall provide for full or half tuition waivers for
five percent (5%) of the entering freshmen, which shall include among others, valedictorians and
salutatorians of both public high schools and private high schools charging less than one thousand five
hundred pesos (P1,500) per student per year as of school year 1988-1989, or such amount in
subsequent years as may be determined by the State Assistance Council: Provided, That those
valedictorians and salutatorians meet admission tests and retention requirements of the schools
concerned. For this purpose, the tuition rates for entering freshmen in all private schools and colleges
may be determined by the school itself, after appropriate consultations with parents, students and
the alumni of the school. For this purpose, audited financial statements shall be made available to
authorized representatives of these sectors.cralaw
(c) Allowance of Valedictorians. Subject to rules and regulations as may be promulgated by the
State Assistance Council, valedictorians referred to under subparagraph (b) above, may, in addition to
tuition waivers granted by the school concerned, be entitled to such allowances from the government
as are provided to PESFA grantees, provided they shall enroll in priority courses.
(d) Allowance for other Honorees. In case the graduating class is composed of more than two
hundred and fifty students, all salutatorians and first honorable mention graduates thereof may also
be entitled to the allowance granted to valedictorians under the preceding paragraph.cralaw
Sec. 9. Further Assistance To Students in Private Colleges and Universities. Tuition fee supplements
for non-freshmen students of private colleges and universities in priority course programs determined
by the Department of Education, Culture and Sports shall be provided by the government through a
voucher system in the following manner: chan robles virtual law library
(a) For re-enrolling students in priority programs in schools, charging an effective per-unit tuition rate
of eighty pesos (P80) or less per unit or such amount in subsequent years as may be determined by
the State Assistance Council: The Government shall provide the student with a voucher with a value
equivalent to the tuition fee increase: Provided, That all schools in this category shall not be allowed
to raise their fees by more than twelve pesos (P12.00) per unit, for both priority and non-priority
courses; and Provided, That such assistance shall be given only to students who have completed one
academic year by June 1989 in priority programs and shall not apply to future college students and to
current college students who transfer outside of their region.chanrobles virtual law library
(b) For students in schools charging an effective per unit tuition rate of more than eighty pesos (P80)
per unit or such amount in subsequent years as may be determined from time to time by the Senate
Assistance Council: The Government shall provide no assistance, and the schools can determine their
own tuition rates, subject to Section 10 hereof: Provided, That they grant full or half-tuition waivers to
five percent (5%) of all their students.chan robles virtual law library
(c) Schools with accredited programs charging a tuition rate of less than eighty pesos (P80.00) per unit
or such amount in subsequent years as may be determined from time to time by the State Assistance
Council, may continue to determine tuition rates, subject to Section 10 hereof, and non-freshmen
students in their accredited priority courses will be entitled to a voucher equivalent to the tuition
increase as in paragraph (a) hereof.
(d) Government assistance and tuition increases as described in this Section shall be governed by the
same conditions as provided under Section 5 (2).

Sec. 10. Consultation. In any proposed increase in the rate of tuition fee, there shall be appropriate
consultations conducted by the school administration with the duly organized parents and teachers
associations and faculty associations with respect to secondary schools, and with students
governments or councils, alumni and faculty associations with respect to colleges. For this purpose,
audited financial statements shall be made available to authorized representatives of these sectors.
Every effort shall be exerted to reconcile possible differences. In case of disagreement, the alumni
association of the school or any other impartial body of their choosing shall act as arbitrator.

Sec. 11. Education Loan Fund. (a) "Study Now, Pay Later Plan". There is hereby created a special
fund to be known as the Students' Loan Fund to be administered by the Department of Education,
Culture and Sports, or upon delegation by the Department, by the Student Loan Fund Authority
created under Republic Act No. 6014 which is hereby reinstituted pursuant to the terms of the same
Republic Act which shall be used to finance educational loans to cover matriculation and other school
fees and educational expenses for book, subsistence and board and lodging. chan robles virtual law
library
(b) Amounts covering payments for tuition, matriculation and other school fees shall be paid directly
to the school concerned.
(c) Any loan granted under this Section shall be paid by the student-debtor after he has finished the
course or profession for which the proceeds of the loan was expended, but only after a period of two
(2) years from the time he has acquired an employment: Provided, however, That interest at the rate
of not more than twelve percent per annum shall accrue on the balance thereof.cralaw
(d) Social Security Fund. The Social Security System Fund shall make available low interest educational
loans to its members and to private educational institutions for school buildings and/or improvement
of their plants and facilities. chan robles virtual law library
Sec. 12. Limitation. The right of any student to avail himself of the benefits under this Act shall not
apply:
(a) If he fails for one (1) schoolyear in the majority of the academic subjects in which he has enrolled
during the course of his study unless such failure is due to some valid cause beyond his control;
and chan robles virtual law library
(b) If he enrolls for the first time, or transfers, outside of the region where he is domiciled unless the
course he wants to pursue is a priority course as determined by the Department of Education, Culture
and Sports and is not offered in any private school in his region.chanrobles virtual law library

Sec. 13. College Faculty Development Fund. For the purpose of improving the quality of teaching in
higher education, there is hereby established in Department of Education, Culture and Sports a
College Faculty Development Fund to provide for scholarships for graduate degrees and non-degree
workshops or seminars for faculty members in private colleges and universities: Provided, That faculty
member recipients of such scholarships shall serve three (3) years return service for every year of
scholarship availed of. The scholarship shall be in priority courses as determined by the Department of
Education, Culture and Sports in coordination with the National Economic Development Authority
(NEDA) and cannot be awarded to promote or inhibit sectarian purposes.chan robles virtual law
library

Sec. 14. Program Administration/Rules and Regulations. The State Assistance Council shall be
responsible for policy guidance and direction, monitoring and evaluation of new and existing
programs, and the promulgation of rules and regulations, while the Department of Education, Culture
and Sports shall be responsible for the day to day administration and program implementation.
Likewise, it may engage the services and support of any qualified government or private entity for its
implementation.chanrobles virtual law library
The State Assistance Council (SAC), hereinafter known as the Council, shall be headed by the Secretary
of Education, Culture and Sports as chairman, with representatives from NEDA, DBM, DOST, and
representatives from duly organized nationwide associations of teachers, students and school
administrators as members. The last three (3) members shall be appointed by the President upon the
recommendation of their respective sectors for a term of four (4) years.cralaw
The Council shall meet, from time to time, as the need arises, to assess the effectivity of the programs
and to ensure that schools, colleges and universities where student recipients are enrolled continue to
provide quality education. For this purpose, the Council shall establish criteria, including accreditation
status, to determine which schools, colleges and universities may continue to enroll students who are
recipients of government assistance under this Act. chan robles virtual law library
Sec. 15. Appropriations. (a) The appropriations of the Department of Education, Culture and Sports
authorized in General Appropriations Act for Fiscal Year 1989, Republic Act No. 6688, for A.7.d
Implementation of programs for secondary education, A.7.e Implementation of programs for higher
education, A.7.g Implementation of free secondary education shall be reduced as far as practicable on
a proportionate basis by region to provide funds for the requirements of this Act in Fiscal Year 1989:
Provided, That savings from any other item of appropriation of the Department of Education, Culture
and Sports may be utilized for the implementation of this Act in Fiscal Year 1989: Provided, further,
That any deficiency shall be taken from any or all of the following sources:
(1) Portions of the coconut levies authorized under Republic Act No. 620 and Presidential Decree No.
1468 and other laws earmarked to finance scholarships for the benefit of deserving children of the
coconut farmers, and the income thereof: Provided, That such funds shall be used exclusively for the
program of assistance for said children including their books, board and lodging and other allowances
in case these are not provided in a particular program of assistance; chan robles virtual law library
(2) Twenty percent (20%) of the travel tax and airport departure tax collections;
(3) Ten percent (10%) of any funds collected by the Sugar Regulatory Administration or the Philippine
Coconut Authority for students in provinces where they are collected; chan robles virtual law library
(4) Ten percent (10%) of the net income of the Development Bank of the Philippines;
(5) Portions of the Overseas Welfare Fund to benefit the dependents or children of overseas workers;
and
(6) Any other lump sum appropriations or collections under the supervision and control of the Office
of the President.

Provided, finally, That the total amount made available to carry out the purposes of this Act shall not
exceed five hundred million pesos (P500M) for Fiscal Year 1989. chan robles virtual law library

Thereafter, such amount as may be necessary for its continued implementation shall be included in
the annual General Appropriations Act.
(b) The amount of assistance on a per student basis as determined under Section 5(a) and (b) and
Section 9(a) of this Act shall remain the same for the subsequent years unless Congress provides
otherwise. chan robles virtual law library
Sec. 16. Penalties. In case of any violation of the provisions of this Act or the rules and regulations
promulgated pursuant thereto by an institution, the Department of Education, Culture and Sports,
upon the recommendation of the Council, may bar the institution from participating in or benefiting
from the programs of this Act, and from other programs of the Department, without prejudice to
administrative and criminal charges as may be filed against the school and/or its responsible officers
under existing laws.cralaw
Any school who shall refuse, as required under paragraph (1) (c) of Section 5, Section 8 (b) and Section
9 (b), to furnish copies of their audited financial statements to concerned sectors with whom they are
having consultations prior to tuition fee increases, shall forfeit the right to increase their tuition fees,
in addition to other penalties or sanctions as may be imposed under the preceding paragraph or by
existing laws.cralaw
Sec. 17. Repealing Clause. All laws and decrees particularly Presidential Decree Nos. 932 and 1371
and such letters of instruction, rules and regulations or parts thereof which are inconsistent with this
Act are hereby repealed or modified accordingly.cralaw
Sec. 18. Separability Clause. If any provision of this Act is declared unconstitutional, the same shall
not affect the validity and effectivity of the other provisions not affected thereby.chan robles virtual
law library
Sec. 19. Effectivity Clause. This Act shall take effect immediately upon its publication in English in
an English newspaper and in Filipino in a Filipino newspaper, both of general circulation. chan robles
virtual law library


Approved: June 10, 1989

REPUBLIC ACT NO. 6139
AN ACT TO REGULATE TUITION AND OTHER SCHOOL FEES OF PRIVATE EDUCATIONAL INSTITUTION,
PROVIDING FOR THE SETTLEMENT OF CONTROVERSIES THEREON AND FOR OTHER PURPOSES.
Section 1. It is hereby declared to be the policy of this Act to regulate tuition and other fees charged by
private schools in order to discourage the collection of exorbitant and unreasonable fees.chanrobles
virtualaw library
Sec. 2. Within the limits and under the circumstances set forth in this Act, the Secretary of Education
shall have the authority to regulate tuition and/or other school fees that each private school, college,
university or any other educational institution as defined in Act Numbered Twenty-seven hundred and
six, including nurseries and kindergarten schools, may impose.chanrobles virtualaw library
Sec. 3. Any private educational institution proposing to increase the tuition and/or other fees being
charged and/or collected by it for any course shall adopt the following procedure:
(a) At least 180 days before the school year, semester, or term in which the increase is to be effective, it
shall serve written notice thereof on the student council or government, or in case of schools or courses
below the college or university level, on the Association of Parents, or in default thereof, the Parents-
Teachers Association of the school concerned.
Likewise, notice of such proposal shall be sent by personal delivery or registered mail to the Director of
Private Schools, copy furnished the Regional Superintendent of the Bureau of Private Schools.
Appropriate circulars containing the proposal shall be posted by the school administration in at least
two conspicuous place within the premises of the school concerned.
The notice of the proposal to increase shall, among other things, state the following: (1) the current fees
or charges and the amount of increase (2) the reason or reasons for the proposed increase (3) the
semester, term or school year in which the increase is proposed to take effect, and (4) a statement that
if no opposition is filed until the thirtieth day from the posting of the notice, the increase shall become
effective under this Act.
(b) If after such notice is made, a formal opposition against such increase is presented to the school
administration within thirty days after receipt of said notice by at least a majority of the student
governing body or at least twenty per cent of the parents, in case of schools below college or university
level, then the Local Schools Council on Fees herein created shall be convened to act on the controversy.
Copy of said opposition shall be served on the Director of Private Schools who shall immediately, upon
receipt, transmit said opposition to the corresponding Regional Superintendent of private schools and
direct that the Local School Council on Fees be immediately organized and convened by said Regional
Superintendent.
If no opposition is filed within the period above provided, the increase shall be deemed authorized.
The Local School Council on Fees shall be composed of the following: (1) one representative from the
school administration to be chosen by the school concerned; (2) two representatives from the student
body to be chosen by the student council or student government, or two representatives from the
Association of Parents or in default thereof, the Parents-Teachers Association in case of schools below
the college or university level to be chosen by the said association; (3) one representative from the
Faculty Club or Association; and (4) The Director of Private Schools or his authorized representative in
the area who will act as Chairman. While sitting as a Board and in aid of its function, said Board may
issue subpoenas to compel attendance of witnesses, may administer oaths, may examine any person
under oaths and may require the production of any books or papers relevant to the case.
(c) The Local School Council on Fees shall exert all efforts to negotiate, conciliate, and settle the case to
the satisfaction of the interested parties. The terms of settlement agreed upon by the parties shall be
final and binding, and copies of such settlement shall be sent to the Director of Private Schools and the
Regional Superintendent of the Bureau of Private Schools. In the event all intra-school remedies for
amicable settlement have been exhausted and no agreement has been reached, then the said Council,
by a majority vote, shall decide the case at least one hundred days before the opening of the school
year, semester or term in which the proposed increase is to be effected. Its decision shall take into
account the objectives of all schools as provided for in Article XIV, Sec. five of the Constitution, the
sufficiency of facilities, the nature of courses and curriculum offered, the standards maintained, the
volume of enrollment, the sufficiency of faculty development program and emoluments, facilities and
student conveniences installed and others, in relation to the general cost by determining the cost of
essential services to be rendered to the students in the quantity and quality required to meet the
standards approved by the Department of Education and by allowing a maximum of twelve per cent on
net worth: Provided, however, That unless required by extraordinary circumstances or events, no school,
college or university shall increase annual tuition fees by more than fifteen per cent of the fees collected
in the preceding school year.
The decision shall be in writing and shall contain concise statement of the facts and the grounds on
which the decision is based.chanrobles virtualaw library
Sec. 4. Any party adversely affected by the decision made by the Local School Council on Fees may
appeal said decision within fifteen days from receipt of the copy of the same to the Secretary of
Education, who shall, after giving notice and opportunity to be heard to interested parties, act upon said
appeal at least sixty days before the close of the school year preceding that to which the increase shall
apply and shall become enforceable beginning the school year following. An appeal shall stay the
execution of decision of the Local School Council on Fees. The decision of the Secretary shall be final and
bidding from its promulgation.
If no appeal is made within the period herein provided, the decision shall become final and binding from
the expiration of said period.chanrobles virtualaw library
Sec. 5. Any private educational institution proposing to decrease the tuition and/or other fees being
charged and/or collected by it for any course shall serve notice of its proposal to decrease on the
student council or government, and in case of schools below the college or university level on the
Association of Parents or in default thereof, on the Parents-Teachers Association at least ninety days
before the school year, term or semester in which it is proposed to take effect. Notice of such proposal
shall be sent by personal delivery or registered mail within the same period to the Director of Public
Schools, copy furnished the Regional Superintendent of the Private Schools in the area.
Notice of the proposal to decrease shall, among other things, state the following: (1) the current fees or
charges and the amount of decrease; (2) the reason or reasons for the proposed decrease; and (3) the
semester, term or school year in which the decrease is supposed to take effect.
If no opposition is presented to the Director of Private Schools by any interested party within thirty days
after such notice is received, the decrease shall be considered authorized. If an opposition is presented
to the Director of Private Schools by any interested party within said period, the Director of Private
Schools shall notify the interested parties, and after giving them the opportunity to be heard and to
present evidence, shall decide the matter at least thirty days before the school year, term or semester in
which the decrease is to take effect. The decision of the Director of Private Schools on decrease of fees
shall be considered final.chanrobles virtualaw library
Sec. 6. In case of appeal from a decision on the increase of tuition or other fees, the Secretary of
Education shall determine the reasonableness of the same taking into consideration, among others, the
factors mentioned in Sec. 3 (c) of this Act.chanrobles virtualaw library
Sec. 7. In cases of extraordinary causes, such as fluctuations in currency, strikes, and other unforseeable
occurrences, the one hundred eighty day- period prescribed in Sec. 3 (a) shall be shortened to ninety
days; the thirty-day period in Sec. 3 (b) to fifteen days, and the one hundred-day period in Sec. 3 (c) to
sixty days. The decision of the Secretary of Education, in case of appeal, shall be promulgated at the
earliest possible time, so as to give all interested parties an opportunity to adjust to the exigencies of
the new situation.chanrobles virtualaw library
Sec. 8. In all proceedings provided in this Act, the technical rules of procedure and evidence shall not
apply.chanrobles virtualaw library
Sec. 9. All fees, except tuition, shall be constituted into a trust fund to be spent for the specific purposes
for which they are respectively collected. The unexpended balance of each fee annually may be used to
cover deficits in other fees, and any unexpended balance of the fund at the end of every five years shall
be constituted into a scholarship fund for poor but deserving students to be administered jointly by the
school administration, faculty and student government.
No School administration shall hold any benefit performance, movies, concerts, dramatic presentation,
games and/or shows of whatever kind or nature whether for charity of otherwise.chanrobles virtualaw
library
Sec. 10. The Secretary, in consultation with the President of (1) Philippine Association of Colleges and
Universities, (2) Catholic Educational Association of the Philippines, (3) Association of Christian Schools
and Colleges, (4) Philippine Association of Private Schools and Colleges, (5) National Confederation of
Faculty Organizations, (6) Philippine Confederation of Parents-Teachers Association, shall, within thirty
days after the effectivity of this Act, promulgate rules and regulations to carry into effect the provisions
hereof: Provided, That such rules and regulations shall become effective upon publication in the Official
Gazette and two newspapers of general circulation in the Philippines.chanrobles virtualaw library
Sec. 11. Any violation of the provisions of this Act or of any rules or regulations promulgated by
authority of this Act or any final decision rendered in accordance with this Act or of any agreed
settlement under Sec. 3 (c) hereof, shall punishable by a fine of two thousand pesos or imprisonment of
one year or both at the discretion of the court and shall be imposed on the Chairman, President or Head
of the educational institution if the violator be a corporation or on any person acting for and in behalf of
the educational institution directly committing the violation in other cases: Provided, That if the violator
is a public official the same penalty shall be imposed without prejudice to any administrative action that
may be taken against him.chanrobles virtualaw library
Sec. 12. All Acts, parts of Acts, executive orders, rules and regulations inconsistent with this Act are
hereby repealed.chanrobles virtualaw library
Sec. 13. This Act shall take effect upon its approval.
Approved: August 31, 1970
PRESIDENTIAL DECREE No. 451 May 11, 1974
AUTHORIZING THE SECRETARY OF EDUCATION AND CULTURE TO REGULATE THE IMPOSITION OF
TUITION AND OTHER SCHOOL FEES, REPEALING REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES
WHEREAS, private schools, colleges and universities have been faced with increasingly serious
problems arising from decreasing incomes due to slump in enrolment and increasing operational costs
brought about by the rise in prices of instructional materials and educational, as well as allied
services;
WHEREAS, it is imperative that private educational institutions upgrade classroom instruction by
improving their facilities and hiring competent teachers in all levels of education, provide salary and
or wage increases and other benefits to their teaching, administrative and other personnel to keep up
with the increasing cost of living;
WHEREAS, the procedure prescribed under R.A. No. 6139 for the increase of tuition and other school
fees has been proved to be too cumbersome and time-consuming, and is not conducive to the growth
and improvement of private educational institutions and the well-being of their employees,
particularly those in the lower income groups and
WHEREAS, in order to alleviate the sad plight of private schools, their personnel and all those directly
and indirectly dependent on school incomes it advisable and necessary that the cumbersome and
time-consuming procedures fixed under Republic Act No. 6139 for increasing tuition fees be simplified
without opening the flood-gates to abuse of the right to increase tuition and other school fees.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution do hereby decree and order the following as part of the law of the
land:
Section 1. Authority of Secretary of Education and Culture. Within the limits and under the
circumstances set forth in this Decree, the Secretary of Education and Culture shall have the authority
to regulate the imposition of tuition and other school fees or charges by any and all private schools as
defined under Act Numbered Two thousand seven hundred and six, as amended. No changes in the
rates of tuition or other school fees or charges shall be effective without the prior approval of the
Secretary of Education and Culture. New school fees or charges to be imposed by new or existing
schools, whether for new courses or other matters, shall be at such reasonable rates as may be
determined by the Secretary of Education and culture based on the standard of such school.
Sec. 2. Application and Documents Required. Any private school which desires to revise its rates of
tuition or other school fees or charges or to impose other fees or charges shall file application therefor
with the Secretary of Education and Culture. The application shall include:
(a) Statement of the itemized current rates of tuition and other charges and the corresponding
itemized proposed changes thereon, as well as the new fees or charges proposed to be imposed, and
of the proposed allocation of the incremental proceeds in accordance with Sec. 3(a) hereof. Such
statements shall, when accomplished be under oath by the proper official (s) of the school concerned;
(b) Financial statement showing the financial status of the school duly certified by a certified public
accountant;
(c) A copy of the last tax return, where required, filed with the Bureau of Internal Revenue.
Sec. 3. Limitations. The increase in tuition or other school fees or other charges as well as the new fees
or charges authorized under the next preceding section shall be subject to the following conditions:
(a) That no increase in tuition or other school fees or charges shall be approved unless sixty (60%) per
centum of the proceeds is allocated for increase in salaries or wages of the members of the faculty
and all other employees of the school concerned, and the balance for institutional development,
student assistance and extension services, and return to investments: Provided, That in no case shall
the return to investments exceed twelve (12%) per centum of the incremental proceeds; and
(b) That any such increase shall in no case exceed fifteen (15%) per centum of the rates charged during
the preceding school year.
Sec. 4. Rules and Regulations. The Secretary of Education and Culture is hereby authorized,
empowered and directed to issue the requisite rules and regulations for the effective implementation
of this Decree. He may, in addition to the requirements and limitations provided for under Sections 2
and 3 hereof, impose other requirements and limitations as he may deem proper and reasonable.
Sec. 5. Prohibitions. No school administration or office or division thereof shall hold or sponsor any
benefit performance, movies, concerts, dramatic presentation, games and/or shows of whatever kind
or nature whether for charity or otherwise. Any such act on the part of the school administration or
office or division thereof shall be considered a circumvention of this law and shall be sufficient cause
for the cancellation of the approval of any previous increase in tuition or other school fees and shall
subject the school official concerned to such disciplinary action as the Secretary of Education and
Culture may deem proper including the revocation on any decree conferred by authority of the
Government.
Sec. 6. Review of Financial Statements. Financial statements submitted in accordance with the
provisions of Sec. 2 hereof may be reviewed by the Commission on Audit at the instance of the
Secretary of Education and Culture whenever he believes that the same is necessary for verification
purposes. For this purpose, the Commission on Audit is authorized to examine the pertinent books
and record of the school concerned.
Sec. 7. Additional Scholarships. As a further condition to any grant of increase in tuition or other
school fees, private schools with a total enrolment of at least one thousand, are hereby required to
provide free scholarships to poor but deserving students at the ratio of one (1) free scholarship for
every five hundred (500) pupils/students enrolled: Provided, That this requirement shall be exclusive
of the present practice of private schools offering scholarship privileges to valedictorians and
salutatorians and other pupils/students who have achieved scholastic distinctions. Neither shall other
forms of scholarships such as those offered to athletes and working students be included in arriving at
the proper number of poor but deserving pupils/students to be given free scholarships.
Sec. 8. Penal Clause. Any violation of the provisions of this Decree or of the rules or regulations
promulgated pursuant thereto or any final decision made by the Secretary of Education and Culture
shall be punishable by a fine of five thousand (P5,000.00) pesos or imprisonment of two years or both
at the discretion of the court which penalty shall be imposed on the official(s) of the private school or
on any person acting for and in behalf of the school directly responsible for the violation. If the
violator is a public official the same penalty shall be imposed without prejudice to any administrative
action which may be taken against him.
Sec. 9. Repealing Clause. Republic Act No. 6139 is hereby repealed, and all laws, decrees, executive
orders, directives and rules and regulations inconsistent herewith are likewise repealed, amended or
modified accordingly.
Section 10. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila, this 11th day of May, in the year of Our Lord, nineteen hundred and
seventy-four.



DEC ISSUANCE
IMPLEMENTING RULES AND REGULATIONS FOR PRESIDENTIAL DECREE NO. 451
Pursuant to Sec. 4 of Presidential Decree No. 451, in relation to Section 1 thereof, the following
implementing rules and regulations are hereby prescribed and promulgated for the guidance of all
concerned:
RULE I
Policy and Scope
Section 1. Scope. The rules and regulations herein prescribed shall apply to all private schools, colleges
and universities duly authorized or recognized by the Government.
Sec. 2. Authority to Regulate. The Secretary of Education and Culture has the authority to regulate any
increase or change in the rate of tuition and/or other school fees or charges collected from pupils or
students and/or their parents by all private schools, colleges and universities.
Any increase or change including new fees in private schools, colleges, and universities shall not be
effective without the prior approval of the Secretary of Education and Culture.
Sec. 3. Purpose of Increase. As a general rule, the purpose or purposes for which any increase or
change in the current rates of tuition and/or other school fees or charges of private schools, colleges
and universities shall be to upgrade and update classroom instruction by improving their facilities and
hiring competent teachers in all levels of education, provide salary and/or wage increase and other
benefits to their teaching, administrative and other personnel to keep up with the increasing cost of
living, and to grant student assistance and establish extension services.
Sec. 4. Effectivity of Increase. Unless otherwise provided, the effectivity of each approval of an
application for increase or change in tuition and/or other school fees or charges, including new fees or
charges, shall be specified and indicated on the action taken by the Secretary of Education and
Culture.
RULE II
Definition of Terms
Section 1. Unless otherwise specifically defined the following terms shall be understood thus
a) Tuition fee covers the school charges for the subjects or course enrolled in by a pupil or student, as
indicated in the respective prospectuses, colleges and universities, which may either be on a term or
yearly basis or per unit or units.
b) Other school fees includes all miscellaneous fees charged to be charged by private schools, colleges
and universities as embodied in their respective prospectuses, bulletins of information, or catalogues,
which are collected and earmarked for certain specified purposes pursuant to existing laws, rules and
regulations.
c) Current school fees means the tuition and other school fees collected or charged by private schools,
colleges and universities as approved, indicated and published in their respective prospectuses,
bulletins of information, or catalogues.
d) Increase in fees means any addition in the amount of the current tuition and/or other school fees
as defined in subsections (a), (b), and (c) herein.
e) New fee or charge means those which are imposed by new schools or by existing schools which are
not included in their public bulletin or catalogue.
RULE III
Application
Section 1. Period of Filing. For the school year 1974-75, each application for increase in tuition and/or
other school fees or charges, including new fees or charges, together with all necessary supporting
documents, shall be filed directly by mail or personal delivery to the Director of Private Schools in
Manila.
Sec. 2. Contents. The application referred to in the preceding section shall indicate, among others, (a)
the purpose and jurisdiction for the proposed increase in tuition and/or other school fees or other
charges, (b) the itemized current rates of tuition fee or other school charges, (c) the corresponding
proposed percentage increase, (d) the revised rates to be imposed or collected, (e) the proposed
allocation and program of expenses to be effected if the petition is approved, and (f) the effectivity in
point of school year on a term at which time the new rates shall be implemented.
Sec. 3. Notices. Application for increase in tuition fee and/or other school charges, or for new fees or
charges, shall be announced by the school administration.
Sec. 4. Oath and Other Requirements. The application shall be signed by the school head, under oath,
and shall include as annexes (a) copy of the financial statement showing the financial status of the
school, college or university, duly certified correct by a licensed Certified Public Accountant; and (b)
copy of the latest tax returns filed by the school, college or university with the Bureau of Internal
Revenue, or in the negative, and lieu of the required tax returns, a corresponding statement relative
thereto by the school head or his duly authorized representative; and (c) a certification by the school
head to the effect that the application for increase has been announced.
RULE IV
Action on Application
Section 1. Delegation of Authority. The Director of Private Schools is hereby authorized to process and
evaluate all applications for increase in tuition fee and/or other charges, including new school fees or
charges, and to submit corresponding recommendations thereon to the Secretary of Education and
Culture for appropriate action.
RULE V
Disposition of Proceeds from Increase
Section 1. Emoluments. At least sixty (60) per cent of the total incremental proceeds from the increase
in tuition fee and/or other school charges shall be applied toward an equitable increase in the
emoluments and/or benefits for members of the faculty, including the staff and administrative
employees of the school, college or university concerned, a maximum of twelve (12%) per cent for
return on investments, and the rest or twenty-eight (28%) per cent for institutional development,
including the emergency allowance called for under LOI No. 174, are deemed embraced in the
emoluments and/or other benefits for members of the faculty and staff.
Sec. 2. Percentage of Increase. The rate of increase in tuition and/or other school fees or charges shall
in no case exceed fifteen (15%) per centum of the current school fees in the school, college, or
university concerned during the next preceding school year.
Sec. 3. Scholarships. As a condition precedent for the grant of any increase in tuition and/or other
school fees or charges, each school, college or university is required to provide free scholarships to
poor but deserving pupils or students at the ratio of one (1) free scholarship for every five hundred
(500) pupils/students enrolled: Provided, however, That the free scholarships herein called for shall
be exclusive or in addition to any existing privileges internally granted by private schools, colleges and
universities to class valedictorians, salutatorians, and other pupils/students who have achieved
scholastic distinctions as well as other forms or kinds of scholarships such as those granted to
athletes, working students, and other beneficiaries.
Sec. 4. Review of Financial Statements. The Secretary of Education and Culture, whenever he deems
fit and necessary for verification purposes, may authorize and/or request a representative of the
Commission on Audit, through its Chairman, to review the financial statements submitted pursuant to
Sec. 2 of Rule III hereof, and to examine the pertinent books and records of the school, college or
university concerned.
RULE VI
Miscellaneous
Section 1. Prohibitions. No school administration shall sponsor or hold any benefit performances,
movies, concerts, dramatic presentations, games and/or shows of whatever kind or nature whether
for charity or otherwise. Any such act on the part of the school administration shall be considered a
circumvention of Presidential Decree No. 451 and shall accordingly be taken as sufficient cause for the
cancellation of the latest approval of the increase in tuition and/or other school fees or charges of the
school, college or university concerned granted by the Secretary of Education and Culture, if any, or a
valid ground for the denial or disapproval of its application if one is pending consideration.
Sec. 2. Penal Provision. Pursuant to Sec. 8 of Presidential Decree No. 451, any violation of the law or
any provisions of these Implementing Rules and Regulations, or any final decision made by the
Secretary of Education and Culture shall be punishable by a fine of Five thousand pesos (5,000.00) or
imprisonment of two (2) years or both at the discretion of the court, which penalty shall be imposed
on the official(s) of the private school or any person acting for and in behalf of the school directly
responsible for the violation. If the violator be a public official the same penalty shall be imposed
without prejudice to any administrative action that may be taken against him.
Sec. 3. Repealed Clause. All existing rules and regulations inconsistent with the present Implementing
Rules and Regulations are repealed, cancelled, revoked, or modified accordingly.
Sec. 4. Effectivity. These implementing rules and regulations shall be effective immediately.
Manila Philippines, May 13, 1974.


Republic Act 6728
Government Assistance To Students and Teachers In Private Education Act
Files:
Republic Act 6728
AN ACT PROVIDING ASSISTANCE TO STUDENTS AND TEACHERS
Section 1. Title. This Act shall be known as the "Government Assistance To
Students and Teachers In Private Education Act."
Sec. 2. Declaration of Policy. It is declared policy of the State in conformity with the
mandate of the Constitution, to promote and make quality education accessible to all
Filipino citizens. The State also hereby recognizes the complementary roles of public and
private educational institutions in the educational system and the invaluable contribution
that the private schools have made and will make to education. For these purposes, the
State shall provide the mechanisms to improve quality in private education by
maximizing the use of existing resources of private education, recognizing in the process
the government responsibility to provide basic elementary and secondary education as
having priority over its function to provide for higher education.
Sec. 3. Criteria for Assistance. The programs for assistance shall be based on a set
of criteria which shall include, among others, tuition fees charged by the schools, the
socio-economic needs of each region, overall performance of the schools, the academic
qualifications and the financial needs of the students, as well as the geographic spread
and size of student population.
In addition to the foregoing criteria, within such reasonable time as the State Assistance
Council may determine, student grantees under the Private Education Student Financial
Assistance Program shall be enrolled in schools which have accredited programs or are
applying for accreditation as determined by the Federation of Accrediting Agencies of the
Philippines, namely: The Philippine Association of Accredited Schools, Colleges and
Universities, the Association of Christian Schools and Colleges Accrediting Agency, and
the Philippine Association of Colleges and Universities Commission on Accreditation.
Preference shall be given to students whose family income is not more than thirty six
thousand pesos (P36,000) or such amount as may be determined by the Council, as
defined hereinafter.
For purposes of this Act, programs of assistance to students of private post-secondary
education shall likewise be extended to students of community colleges and students in
non-degree programs including vocational and technical courses. Implementation of the
program shall encourage students to undergo tertiary education in the same region
where their families reside.
The programs of assistance under this Act shall be extended only to students who are
citizens of the Philippines.
Sec. 4. Forms of Assistance. Assistance to private education shall consist of:
1. Tuition fee supplements for students in private high schools, including students in
vocational and technical courses;
2. High School Textbook Assistance Fund: Provided, That students in public schools
shall be provided a comprehensive textbook program under the Secondary
Education Development Program (SEDP);
3. Expansion of the existing Educational Service Contracting (ESC) Scheme;
4. The voucher system of the Private Education Student Financial Assistance Program
(PESFA);
5. Scholarship grants to students graduating as valedictorians and salutatorians from
secondary schools;
6. Tuition fee supplements to students in private colleges and universities;
7. Education Loan Fund; and
8. College Faculty Development Fund.
Sec. 5. Tuition Fee Supplement for Students in Private High School. (1)
Financial assistance for tuition for students in private high schools shall be provided by
the government through a voucher system in the following manner:
(a) For students enrolled in schools charging less than one thousand five hundred
pesos (P1,500) per year in tuition and other fees during school year 1988-1989 or such
amount in subsequent years as may be determined from time to time by the State
Assistance Council: The Government shall provide them with a voucher equal to two
hundred ninety pesos (P290.00): Provided, That the student pays in the 1989-1990
school year, tuition and other fees equal to the tuition and other fees paid during the
preceding academic year: Provided, further, That the Government shall reimburse the
vouchers from the schools concerned within sixty (60) days from the close of the
registration period: Provided, furthermore, That the student's family resides in the same
city or province in which the high school is located unless the student has been enrolled
in that school during the previous academic year.
(b) For students enrolled in schools charging above one thousand five hundred pesos
(P1,500) per year in tuition and other fees during the school year 1988-1989 or such
amount in subsequent years as may be determined from time to time by the State
Assistance Council, no assistance for tuition fees shall be granted by the Government:
Provided, however, That the schools concerned may raise their tuition fees subject to
Section 10 hereof.
(2) Assistance under paragraph (1), subparagraphs (a) and (b) shall be granted and
tuition fees under subparagraph (c) may be increased, on the condition that seventy
percent (70%) of the amount subsidized allotted for tuition fee or of the tuition fee
increases shall go to the payment of salaries, wages, allowances and other benefits of
teaching and non-teaching personnel except administrators who are principal
stockholders of the school, and may be used to cover increases as provided for in the
collective bargaining agreements existing or in force at the time when this Act is
approved and made effective: Provided, That government subsidies are not used directly
for salaries of teachers of non-secular subjects. At least twenty percent (20%) shall go to
the improvement or modernization of buildings, equipment, libraries, laboratories,
gymnasia and similar facilities and to the payment of other costs of operation. For this
purpose, school shall maintain a separate record of accounts for all assistance received
from the government, any tuition fee increase, and the detailed disposition and use
thereof, which record shall be made available for periodic inspection as may be
determined by the State Assistance Council, during business hours, by the faculty, the
non-teaching personnel, students of the school concerned, the Department of Education,
Culture and Sports and other concerned government agencies.

Sec. 6. High School Textbook Assistance Fund. There shall be established in the
Department of Education, Culture and Sports (DECS) a High School Textbook Assistance
Fund, so that an assistance on a per student basis shall be given to private schools
charging less than one thousand five hundred pesos (P1,500.00) for 1988-1989 per year,
or such amount in subsequent years as may be determined from time to time by the
State Assistance Council, exclusively for the purchase of high school textbooks, in
support of the implementation of the Secondary Education Development Program:
Provided, That such fund shall not be used for the purchase of books that will advance or
inhibit sectarian interest: Provided, further, That such textbooks are included in the list
approved by the Department of Education, Culture and Sports.
Sec. 7. Expansion of the Existing Educational Service Contracting (ESC)
Scheme.
(a) The Department of Education, Culture and Sports (DECS) shall continue to enter into
contracts with private schools whereby the Government shall shoulder the tuition and
other fees of excess students in public high schools who shall enroll under this program.
It shall settle all outstanding obligations before contracting new obligations.
(b) The Department shall also enter into contract with private schools in communities
where there are no public high schools, in which case the Department shall shoulder the
tuition and other fees of students who shall enroll in said private schools. The number of
such schools assisted by the program will be increased every year such that all schools in
this category will be assisted within four (4) years from the promulgation of this Act.
(c) The amount of assistance to be given by the Government under this Section shall not
exceed that determined as the per student cost in public high schools.
(d) The Department shall fully pay the subsidized amount to participating schools not
later than the end of the schoolyear, unless the delay incurred is attributable to the
participating schools.
(e) The amount of assistance shall be allocated and distributed among the fourteen (14)
regions in proportion to the total population as well as the high school age population for
the first school year: Provided, That starting school year 1990, an equalization scheme
shall be implemented by the State Assistance Council.
Sec. 8. Assistance to College Freshmen.
(a) The Voucher System of Private Education Student Financial Assistance (PESFA)
Program. The existing Private Education Student Financial Assistance (PESFA) Program
which covers degree and vocational/technical courses shall be expanded so that a
minimum of ten percent (10%) for the school year 1989, fifteen percent (15%) for the
school year 1990, twenty percent (20%) for the school year 1991, twenty-five percent
(25%) for the school year 1992 and thereafter, of all enrolling first year students can
benefit from a full or partial scholarship, plus an allowance. Such financial assistance
shall be granted to deserving underprivileged students, who shall be selected on the
basis of family income, geographic spread and results of competitive examinations to be
given by the Department of Education, Culture and Sports to students in all secondary
schools. The program shall be equitably allocated to provinces and cities in accordance
with regional and national plans to priority courses as determined by the Department of
Education, Culture and Sports in coordination with the National Economic Development
Authority (NEDA). The priority courses shall be submitted to Congress at the start of this
program and any changes thereon periodically.
For purposes of this Act, an underprivileged student shall refer to a student whose
annual gross income, if any, and that of the combined annual gross income of his parents
do not exceed thirty-six thousand pesos (P36,000).
(b) Tuition Waiver. Private colleges and universities shall provide for full or half
tuition waivers for five percent (5%) of the entering freshmen, which shall include among
others, valedictorians and salutatorians of both public high schools and private high
schools charging less than one thousand five hundred pesos (P1,500) per student per
year as of school year 1988-1989, or such amount in subsequent years as may be
determined by the State Assistance Council: Provided, That those valedictorians and
salutatorians meet admission tests and retention requirements of the schools concerned.
For this purpose, the tuition rates for entering freshmen in all private schools and
colleges may be determined by the school itself, after appropriate consultations with
parents, students and the alumni of the school. For this purpose, audited financial
statements shall be made available to authorized representatives of these sectors.
(c) Allowance of Valedictorians. Subject to rules and regulations as may be
promulgated by the State Assistance Council, valedictorians referred to under
subparagraph (b) above, may, in addition to tuition waivers granted by the school
concerned, be entitled to such allowances from the government as are provided to PESFA
grantees, provided they shall enroll in priority courses.
(d) Allowance for other Honorees. In case the graduating class is composed of
more than two hundred and fifty students, all salutatorians and first honorable mention
graduates thereof may also be entitled to the allowance granted to valedictorians under
the preceding paragraph.
Sec. 9. Further Assistance To Students in Private Colleges and Universities.
Tuition fee supplements for non-freshmen students of private colleges and universities in
priority course programs determined by the Department of Education, Culture and Sports
shall be provided by the government through a voucher system in the following manner:
(a) For re-enrolling students in priority programs in schools, charging an effective per-
unit tuition rate of eighty pesos (P80) or less per unit or such amount in subsequent
years as may be determined by the State Assistance Council: The Government shall
provide the student with a voucher with a value equivalent to the tuition fee increase:
Provided, That all schools in this category shall not be allowed to raise their fees by more
than twelve pesos (P12.00) per unit, for both priority and non-priority courses; and
Provided, That such assistance shall be given only to students who have completed one
academic year by June 1989 in priority programs and shall not apply to future college
students and to current college students who transfer outside of their region.
(b) For students in schools charging an effective per unit tuition rate of more than
eighty pesos (P80) per unit or such amount in subsequent years as may be determined
from time to time by the Senate Assistance Council: The Government shall provide no
assistance, and the schools can determine their own tuition rates, subject to Section 10
hereof: Provided, That they grant full or half-tuition waivers to five percent (5%) of all
their students.
(c) Schools with accredited programs charging a tuition rate of less than eighty pesos
(P80.00) per unit or such amount in subsequent years as may be determined from time
to time by the State Assistance Council, may continue to determine tuition rates, subject
to Section 10 hereof, and non-freshmen students in their accredited priority courses will
be entitled to a voucher equivalent to the tuition increase as in paragraph (a) hereof.
(d) Government assistance and tuition increases as described in this Section shall be
governed by the same conditions as provided under Section 5 (2).
Sec. 10. Consultation. In any proposed increase in the rate of tuition fee, there
shall be appropriate consultations conducted by the school administration with the duly
organized parents and teachers associations and faculty associations with respect to
secondary schools, and with students governments or councils, alumni and faculty
associations with respect to colleges. For this purpose, audited financial statements shall
be made available to authorized representatives of these sectors. Every effort shall be
exerted to reconcile possible differences. In case of disagreement, the alumni association
of the school or any other impartial body of their choosing shall act as arbitrator.
Sec. 11. Education Loan Fund.
(a) "Study Now, Pay Later Plan". There is hereby created a special fund to be known
as the Students' Loan Fund to be administered by the Department of Education, Culture
and Sports, or upon delegation by the Department, by the Student Loan Fund Authority
created under Republic Act No. 6014 which is hereby reinstituted pursuant to the terms
of the same Republic Act which shall be used to finance educational loans to cover
matriculation and other school fees and educational expenses for book, subsistence and
board and lodging.
(b) Amounts covering payments for tuition, matriculation and other school fees shall be
paid directly to the school concerned.
(c) Any loan granted under this Section shall be paid by the student-debtor after he has
finished the course or profession for which the proceeds of the loan was expended, but
only after a period of two (2) years from the time he has acquired an employment:
Provided, however, That interest at the rate of not more than twelve percent per annum
shall accrue on the balance thereof.
(d) Social Security Fund. The Social Security System Fund shall make available low
interest educational loans to its members and to private educational institutions for
school buildings and/or improvement of their plants and facilities.
Sec. 12. Limitation. The right of any student to avail himself of the benefits under
this Act shall not apply:
(a) If he fails for one (1) schoolyear in the majority of the academic subjects in which
he has enrolled during the course of his study unless such failure is due to some valid
cause beyond his control; and
(b) If he enrolls for the first time, or transfers, outside of the region where he is
domiciled unless the course he wants to pursue is a priority course as determined by the
Department of Education, Culture and Sports and is not offered in any private school in
his region.
Sec. 13. College Faculty Development Fund. For the purpose of improving the
quality of teaching in higher education, there is hereby established in Department of
Education, Culture and Sports a College Faculty Development Fund to provide for
scholarships for graduate degrees and non-degree workshops or seminars for faculty
members in private colleges and universities: Provided, That faculty member recipients
of such scholarships shall serve three (3) years return service for every year of
scholarship availed of. The scholarship shall be in priority courses as determined by the
Department of Education, Culture and Sports in coordination with the National Economic
Development Authority (NEDA) and cannot be awarded to promote or inhibit sectarian
purposes.
Sec. 14. Program Administration/Rules and Regulations. The State Assistance
Council shall be responsible for policy guidance and direction, monitoring and evaluation
of new and existing programs, and the promulgation of rules and regulations, while the
Department of Education, Culture and Sports shall be responsible for the day to day
administration and program implementation. Likewise, it may engage the services and
support of any qualified government or private entity for its implementation.
The State Assistance Council (SAC), hereinafter known as the Council, shall be
headed by the Secretary of Education, Culture and Sports as chairman, with
representatives from NEDA, DBM, DOST, and representatives from duly organized
nationwide associations of teachers, students and school administrators as members. The
last three (3) members shall be appointed by the President upon the recommendation of
their respective sectors for a term of four (4) years.
The Council shall meet, from time to time, as the need arises, to assess the effectivity of
the programs and to ensure that schools, colleges and universities where student
recipients are enrolled continue to provide quality education. For this purpose, the
Council shall establish criteria, including accreditation status, to determine which schools,
colleges and universities may continue to enroll students who are recipients of
government assistance under this Act.
Sec. 15. Appropriations.
(a) The appropriations of the Department of Education, Culture and Sports authorized in
General Appropriations Act for Fiscal Year 1989, Republic Act No. 6688, for A.7.d
Implementation of programs for secondary education, A.7.e Implementation of programs
for higher education, A.7.g Implementation of free secondary education shall be reduced
as far as practicable on a proportionate basis by region to provide funds for the
requirements of this Act in Fiscal Year 1989: Provided, That savings from any other item
of appropriation of the Department of Education, Culture and Sports may be utilized for
the implementation of this Act in Fiscal Year 1989: Provided, further, That any deficiency
shall be taken from any or all of the following sources:
1. Portions of the coconut levies authorized under Republic Act No. 620 and
Presidential Decree No. 1468 and other laws earmarked to finance scholarships for
the benefit of deserving children of the coconut farmers, and the income thereof:
Provided, That such funds shall be used exclusively for the program of assistance
for said children including their books, board and lodging and other allowances in
case these are not provided in a particular program of assistance;
2. Twenty percent (20%) of the travel tax and airport departure tax collections;
3. Ten percent (10%) of any funds collected by the Sugar Regulatory Administration
or the Philippine Coconut Authority for students in provinces where they are
collected;
4. Ten percent (10%) of the net income of the Development Bank of the Philippines;
5. Portions of the Overseas Welfare Fund to benefit the dependents or children of
overseas workers; and
6. Any other lump sum appropriations or collections under the supervision and control
of the Office of the President.
Provided, finally, That the total amount made available to carry out the purposes of this
Act shall not exceed five hundred million pesos (P500M) for Fiscal Year 1989.
Thereafter, such amount as may be necessary for its continued implementation shall be
included in the annual General Appropriations Act.
(b) The amount of assistance on a per student basis as determined under Section 5(a)
and (b) and Section 9(a) of this Act shall remain the same for the subsequent years
unless Congress provides otherwise.
Sec. 16. Penalties. In case of any violation of the provisions of this Act or the rules
and regulations promulgated pursuant thereto by an institution, the Department of
Education, Culture and Sports, upon the recommendation of the Council, may bar the
institution from participating in or benefiting from the programs of this Act, and from
other programs of the Department, without prejudice to administrative and criminal
charges as may be filed against the school and/or its responsible officers under existing
laws.
Any school who shall refuse, as required under paragraph (1) (c) of Section 5, Section 8
(b) and Section 9 (b), to furnish copies of their audited financial statements to concerned
sectors with whom they are having consultations prior to tuition fee increases, shall
forfeit the right to increase their tuition fees, in addition to other penalties or sanctions
as may be imposed under the preceding paragraph or by existing laws.
Sec. 17. Repealing Clause. All laws and decrees particularly Presidential Decree
Nos. 932 and 1371 and such letters of instruction, rules and regulations or parts thereof
which are inconsistent with this Act are hereby repealed or modified accordingly.
Sec. 18. Separability Clause. If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other
provisions not affected thereby.
Sec. 19. Effectivity Clause. This Act shall take effect immediately upon its
publication in English in an English newspaper and in Filipino in a Filipino newspaper,
both of general circulation.
Approved: June 10, 1989

Batas Pambansa Blg: 232 | Date: September 11, 1982.
An Act Providing For The Establishment And Maintenance Of An Integrated System Of Education
I. GENERAL PROVISIONS
CHAPTER 1
Preliminary Matters
Section 1. Title This Act shall be known as the Education Act of 1982.
Section 2. Coverage This Act shall apply to and govern both formal and non-formal systems in public
and private schools in all levels of the entire educational system.
CHAPTER 2
Declaration of Basic State Policy and Objectives
Section 3. Declaration of Basic Policy It is the policy of the State to established and maintain a
complete, adequate and integrated system of education relevant to the goals of national
development. Toward this end, the government shall ensure, within the context of a free and
democratic system, maximum contribution of the educational system to the attainment of the
following national developmental goals:
1. To achieve and maintain an accelerating rate of economic development and social progress;
2. To ensure the maximum participation of all the people in the attainment and enjoyment of the
benefits of such growth; and
3. To achieve and strengthen national unity and consciousness and preserve, develop and promote
desirable cultural, moral and spiritual values in a changing world.
The State shall promote the right of every individual to relevant quality education, regardless of sex,
age, creed, socio-economic status, physical and mental conditions, racial or ethnic origin, political or
other affiliation. The State shall therefore promote and maintain equality of access to education as
well as the enjoyment of the benefits of education by all its citizens.
The state shall promote the right of the nations cultural communities in the exercise of their right to
develop themselves within the context of their cultures, customs, traditions, interest and belief, and
recognizes education as an instrument for their maximum participation in national development and
in ensuring their involvement in achieving national unity.
Section 4. Declaration of Objectives The educational system aim to:
1. Provide for a broad general education that will assist each individuals in the peculiar ecology of his
own society, to
(a) attain his potentials as a human being;
(b) enhance the range and quality of individual and group participation in the basic functions of
society; and
(c) acquire the essential educational foundation of his development into a productive and versatile
citizen;
2. Train the nations manpower in the middle-level skills for national development;
3. Develop the profession that will provide leadership for the nation in the advancement of
knowledge for improving the quality of human life; and
4. Respond effectively to changing needs and conditions of the nation through a system of
educational planning and evaluation.
Towards the realization of these objectives, and pursuant to the Constitution, all educational
institutions shall aim to inculcate love of country, teach the duties of citizenship, and develop moral
character, personal discipline, and scientific, technological, and vocational efficiency.
Furthermore, the educational system shall reach out to educationally deprived communities, in order
to give meaningful reality to their membership in the national society, to enrich their civic
participation in the community and national life, and to unify all Filipinos into a free and just nation.
II. THE EDUCATIONAL COMMUNITY
CHAPTER 1
Preliminary Provisions
Section 5. Declaration of Policy and Objectives It is likewise declared government policy to foster, at
all times, a spirit of shared purposes and cooperation among the members and elements of the
educational community, and between the community and other sectors of society, in the realization
that only in such an atmosphere can be true goals and objectives of education be fulfilled.
Moreover, the State shall:
1. Aid and support the natural right and duty of parents in the rearing of the youth through the
educational system.
2. Promote and safeguard the welfare and interest of the students by defining their rights and
obligations, according them privileges, and encouraging the establishment of sound relationships
between them and the other members of the school community.
3. Promote the social economic status of all school personnel, uphold their rights, define their
obligations, and improve their living and working conditions and career prospects.
4. Extend support to promote the viability of those institutions through which parents, students and
school personnel seek to attain their educational goals.
Section 6. Definition and Coverage Educational community refers to those persons or groups of
persons as such or associated in institutions involved in organized teaching and learning systems.
The members and elements of the educational community are:
1. Parents or guardians or the head of the institution or foster home which has custody of the pupil
or student.
2. Students, or those enrolled in and who regularly attend and educational institution of secondary
or higher level of a person engaged in formal study. Pupils, are those who regularly attend a school
of elementary level under the supervision and tutelage of a teacher.
3 School personnel, or all persons working for an educational institution, which includes the
following:
a. Teaching or academic staff, or all persons engaged in actual teaching and/or research
assignments, either on full-time or part-time basis, in all levels of the educational system.
b. School administrators, or all persons occupying policy implementing positions having to do with
the functions of the school in all levels.
c. Academic non-teaching personnel, or those persons holding some academic qualifications and
performing academic functions directly supportive of teaching, such as registrars, librarians, research
assistants, research aides, and similar staff.
d. Non-academic personnel, or all other school personnel not falling under the definition and
coverage of teaching and academic staff, school administrators and academic non-teaching personnel.
4. Schools, or institutions recognized by the State which undertake educational operations.
Section 7. Community Participation. Every educational institution shall provide for the
establishment of appropriate bodies through which the members of the educational community may
discuss relevant issues, and communicate information and suggestions for assistance and support of
the school and for the promotion of their common interest.
Representatives from each subgroup of the educational community shall sit and participate in these
bodies, the rules and procedures of which must be approved by them and duly published.
CHAPTER 2
Rights
Section 8. Rights of Parents In addition to other rights under existing laws, all parents who have
children enrolled in a school have the following rights:
1. The right to organize by themselves and/or with teachers for the purpose of providing a forum for
the discussion of matters relating to the total school program, and for ensuring the full cooperation of
parents and teachers in the formulation and efficient implementation of such programs.
2. The right to access to any official record directly relating to the children who are under their
parental responsibility.
Section 9. Right of Students in School In addition to other rights, and subject to the limitation
prescribed by law and regulations, and student and pupils in all schools shall enjoy the following
rights:
1. The right to receive, primarily through competent instruction, relevant quality education in line
with national goals and conducive to their full development as person with human dignity.
2. The right to freely chose their field of study subject to existing curricula and to continue their course
therein up to graduation, except in cases of academic deficiency, or violation of disciplinary
regulations.
3. The right to school guidance and counseling services for decisions and selecting the alternatives in
fields of work suited to his potentialities.
4. The right of access to his own school records, the confidentiality of which the school shall maintain
and preserve.
5. The right to the issuance of official certificates, diplomas, transcript of records, grades, transfer
credentials and other similar documents within thirty days from request.
6. The right to publish a student newspaper and similar publications, as well as the right to invite
resource persons during assemblies, symposia and other activities of similar nature.
7. The right to free expression of opinions and suggestions, and to effective channels of
communication with appropriate academic channels and administrative bodies of the school or
institution.
8. The right to form, establish, join and participate in organizations and societies recognized by the
school to foster their intellectual, cultural, spiritual and physical growth and development, or to form,
establish, join and maintain organizations and societies for purposes not contrary to law.
9. The right to be free from involuntary contributions, except those approved by their own he
organizations or societies.
Section 10. Rights of all School Personnel In addition to other rights provided for by law, the
following rights shall be enjoyed by all school personnel:
1. The right to free expression of opinion and suggestions, and to effective channels of communication
with appropriate academic and administrative bodies of the school or institution.
2. The right to be provided with free legal service by the appropriate government office in the case of
public school personnel, and through the school authorities concerned in the case of private school
personnel, when charged in an administrative, civil and/or criminal proceedings by parties other than
the school or regulatory authorities concerned for actions committed directly in the lawful discharge
of professional duties and/or in defense of school policies.
3. The right to establish, join and maintain labor organizations and/or professional and self-regulating
organizations of their choice to promote their welfare and defend their interests.
4. The right to be free from involuntary contributions except those imposed by their own
organizations.
Section 11. Special Rights and/or Privileges of Teaching or Academic Staff Further to the rights
mentioned in the preceding Section, every member of the teaching or academic staff shall enjoy the
following rights and/or privileges:
1. The right to be free from compulsory assignments not related to their duties as defined in their
appointments or employment contracts, unless compensated therefor, conformably to existing law.
2. The right to intellectual property consistent with applicable laws.
3. Teachers shall be deemed persons in authority when in the discharge of lawful duties and
responsibilities, and shall, therefore, be accorded due respect and protection.
4. Teachers shall be accorded the opportunity to choose alternative career lines either in school
administration, in classroom teaching, or others, for purposes of career advancement.
Section 12. Special Rights of School Administration School administrators shall, in accordance with
existing laws, regulations and policies of the Ministry of Education, Culture and Sports, be accorded
sufficient administrative discretion necessary for the efficient and effective performance of their
functions.
School administrators shall be deemed persons in authority while in the discharge of lawful duties and
responsibilities, and shall therefore be accorded due respect and protection.
Section 13. Rights of Schools In addition to other rights provided for by law, schools shall enjoy the
following:
1. The right of their governing boards or lawful authorities to provide for the proper governance of the
school and to adopt and enforce administrative or management systems.
2. The right for institutions of higher learning to determine on academic grounds who shall be
admitted to study, who may teach, and what shall be subjects of the study and research.
CHAPTER 3
Duties and Obligations
Section 14. Duties of Parents. In addition to those provided for under existing laws, all parents shall
have the following duties and obligations:
1. Parents, individually or collectively, through the school systems, shall help carry out the educational
objectives in accordance with national goals.
2. Parents shall be obliged to enable their children to obtain elementary education and shall strive to
enable them to obtain secondary and higher education in the pursuance of the right formation of the
youth.
3. Parents shall cooperate with the school in the implementation of the school program curricular and
co-curricular.
Section 15. Duties and Responsibilities of Students In addition to those provided for under existing
laws, every student shall:
1. Exert his utmost to develop his potentialities for service, particularly by undergoing an education
suited to his abilities, in order that he may become an asset to his family and to society.
2. Uphold the academic integrity of the school, endeavor to achieve academic excellence and abide by
the rules and regulations governing his academic responsibilities and moral integrity.
3. Promote and maintain the peace and tranquility of the school by observing the rules and discipline,
and by exerting efforts to attain harmonious relationships with fellow students, the teaching and
academic staff and other school personnel.
4. Participate actively in civic affairs and in the promotion of the general welfare, particularly in the
social, economic and cultural development of his community and in the attainment of a just,
compassionate and orderly society.
5. Exercise his rights responsibly in the knowledge that he is answerable for any infringement or
violation of the public welfare and of the rights of others.
Section 16. Teachers Obligations Every teacher shall:
1. Perform his duties to the school by discharging his responsibilities in accordance with the
philosophy, goals, and objectives of the school.
2. Be accountable for the efficient and effective attainment of specified learning objectives in
pursuance of national development goals within the limits of available school resources.
3. Render regular reports on performance of each student and to the latter and the latters parents
and guardians with specific suggestions for improvement.
4. Assume the responsibility to maintain and sustain his professional growth and advancement and
maintain professionalism in his behavior at all times.
5. Refrain from making deductions in students scholastic rating for acts that are clearly not
manifestations of poor scholarship.
6. Participate as an agent of constructive social, economic, moral, intellectual, cultural and political
change in his school and the community within the context of national policies.
Section 17. School Administrators Obligations Every school administrator shall:
1. Perform his duties to the school by discharging his responsibilities in accordance with the
philosophy, goals and objectives of the school.
2. Be accountable for the efficient and effective administration and management of the school.
3. Develop and maintain a healthy school atmosphere conducive to the promotion and preservation
of academic freedom and effective teaching and learning, and to harmonious and progressive school-
personnel relationship.
4. Assume and maintain professional behavior in his work and in dealing with students, teachers,
academic non-teaching personnel, administrative staff, and parents or guardians.
5. Render adequate reports to teachers, academic non-teaching personnel and non-academic staff on
their actual performance in relation to their expected performance and counsel them on ways of
improving the same.
6. Observe due process, fairness, promptness, privacy, constructiveness and consistency in disciplining
his teachers and other personnel.
7. Maintain adequate records and submit required reports to the Ministry of Education, Culture and
Sports.
Section 18. Obligations of Academic Non-Teaching Personnel Academic non-teaching personnel
shall:
1. Improve himself professionally be keeping abreast of the latest trends and techniques in his
profession.
2. Assume, promote and maintain an atmosphere conducive to service and learning.
3. Promote and maintain an atmosphere conducive to service and learning.
III. THE EDUCATIONAL SYSTEMS
CHAPTER 1
Formal Education
Section 19. Declaration of Policy. The State recognizes that formal education, or the school system,
in societys primary learning system, and therefore the main instrument for the achievement of the
countrys educational goals and objectives.
Section 20. Definition Formal Educational refers to the hierarchically structured and
chronologically graded learning organized and provided by the formal school system and for which
certification is required in order for the learner to progress through the grades or move to higher
levels. Formal education shall correspond to the following levels:
1. Elementary Education. the first stage of compulsory, formal education primarily concerned with
providing basic education and usually corresponding to six or seven grades, including pre-school
programs.
2. Secondary Education. the state of formal education following the elementary level concerned
primarily with continuing basic education and expanding it to include the learning of employable
gainful skills, usually corresponding to four years of high school.
3. Tertiary Education. post secondary schooling is higher education leading to a degree in a specific
profession or discipline.
Section 21. Objectives of Elementary Education The objectives of elementary education are:
1. To provide the knowledge and develop the skills, attitudes, and values essential to personal
development and necessary for living in and contributing to a developing and changing social milieu;
2. To provide learning experiences which increase the childs awareness of and responsiveness to the
changes in and just demands of society and to prepare him for constructive and effective
involvement;
3. To promote and intensify the childs knowledge of, identification with, and love for the nation and
the people to which he belongs; and
4. To promote work experiences which develop the childs orientation to the world of work and
creativity and prepare himself to engage in honest and gainful work.
Section 22. Objectives of Secondary Education. The objectives of secondary education are:
1. To continue to promote the objectives of elementary education; and
2. To discover and enhance the different aptitudes and interests of the students so as to equip him
with skills for productive endeavor and/or prepare him for tertiary schooling.
Section 23. Objective of Tertiary Education. The objectives of tertiary education are:
1. To provide a general education program that will promote national identity, cultural consciousness,
moral integrity and spiritual vigor;
2. To train the nations manpower in the skills required for national development;
3. To develop the professions that will provide leadership for the nation; and
4. To advance knowledge through research work and apply new knowledge for improving the quality
of human life and responding effectively to changing societal needs and conditions.
CHAPTER 2
Non-Education and Specialized Educational Services
Section 24. Specialized Educational Service The State further recognizes its responsibility to provide,
within the context of the formal education system, services to meet special needs of certain clientele.
These specific types, which shall be guided by the basic policies of the State embodied in the General
Provisions of this Act, include:
1. Work Education, or Practical Arts, as a program of basic education which aims to develop the
right attitudes towards work; and technical-vocational education, post-secondary but non-degree
programs leading to one, two, or three year certificates in preparation for a group of middle-level
occupations.
2. Special Education, the education of persons who are physically, mentally, emotionally, socially, or
culturally different from the so-called normal individuals that they require modification of school
practices/services to develop them to their maximum capacity; and
3. Non-formal Education, any organized school-based educational activities undertaken by the
Ministry of Education, Culture and Sports and other agencies aimed at attaining specific learning
objectives for a particular clientele, especially the illiterates and the out-of-school youth and adults,
distinct from and outside the regular offerings of the formal school system.
The objectives of non-formal education are as follows:
a. To eradicate illiteracy and raise the level of functional literacy of the population;
b. To provide unemployed and underemployed youth and adults with appropriate
vocational/technical skills to enable them to become more productive and effective citizens; and
c. To develop among the clientele of non-formal education proper values and attitudes necessary for
personal, community and national development.
CHAPTER 3
Establishment of Schools
Section 25. Establishment of Schools All schools shall be established in accordance with law. The
establishment of new national schools and the conversion of existing schools from elementary to
national secondary or tertiary schools shall be by law: Provided, That any private school proposed to
be established must incorporate as an non-stock educational corporation in accordance with the
provisions of the Corporation Code of the Philippines. This requirement to incorporate may be waived
in the case of family-administered pre-school institutions.
Government assistance to such schools for educational programs shall be used exclusively for that
purpose.
Section 26. Definition of Terms The terms used in this Chapter are defined as follows:
1. Schools are duly established institutions of learning or educational institutions.
2. Public Schools are educational institutions established and administered by the government.
3. Private Schools are educational institutions maintained and administered by private individuals
or groups.
Section 27. Recognition of Schools The educational operations of schools shall be subject to their
prior authorization of the government, and shall be affected by recognition. In the case of government
operated schools, whether local, regional, or national, recognition of educational programs and/or
operations shall be deemed granted simultaneously with establishment.
In all other case the rules and regulations governing recognition shall be prescribed and enforced by
the Ministry of Education, Culture and Sports defining therein who are qualified to apply, providing
for a permit system, stating the conditions for the grant of recognition and for its cancellation and
withdrawal, and providing for related matters.
Section 28. Effects of Recognition; Punishable Violations The issuance of a certificate of recognition
to a school shall have the following effects:
1. It transforms the temporary permit to a permanent authority to operate;
2. It entitled the school or college to give the students who have completed the course for which
recognition is granted, a certificate, title or diploma; and
3. It shall entitle the students who have graduated from said recognized course or courses to all the
benefits and privileges enjoyed by graduates in similar courses of studies in all schools recognized by
the government.
Operation of schools and educational programs without authorization, and/or operation thereof in
violation of the terms of recognition, are hereby declared punishable violations subject to the
penalties provided in this Act.
Section 29. Voluntary Accreditation The Ministry shall encourage programs of voluntary
accreditation for institution which desire to meet standards of quality over and above minimum
required for State recognition.
CHAPTER 4
Internal Organization of Schools
Section 30. Organization of Schools Each school shall establish such internal organization as will best
enable it to carry out its academic and administrative functions, subject to limitations provided by
law.
Each school establish such arrangements for the peaceful settlement of disputes between or among
the members of the educational community.
Section 31. Governing Board Every government college or university as a tertiary institution and
every private school shall have a governing board pursuant to its charter or the Corporation Code of
the Philippines, as the case may be.
Section 32. Personnel Transactions The terms and conditions of employment of personnel in
government schools shall be governed by the Civil Service, budgetary and compensation laws and
rules.
In private schools, dispute arising from employer-employee relations shall fall under the jurisdiction
of the Ministry of Labor and Employment as provided for by law regulations: Provided, That in view of
the special employment status of the teaching and academic non-teaching personnel, and their
special roles in the advancement of knowledge, standards set or promulgated jointly by the Ministry
of Education, Culture and Sports and by the Ministry of Labor and Employment shall be applied by the
Ministry of Labor and Employment: Provided, further, That every private school shall establish and
implement an appropriate system within the school for the prompt and orderly settlement of
provisions of Articles 262 and 263 of the Labor Code.
CHAPTER 5
School Finance and Assistance
Section 33. Declaration of Policy It is hereby declared to be the policy of the State that the national
government shall contribute to the financial support of educational programs pursuant to goals of
education as declared in the Constitution. Towards this end, the government shall:
1. Adopt measures to broaden access to education through financial assistance and other forms of
incentives to schools, teachers, pupils and students; and
2. Encourage and stimulate private support to education through, inter alia, fiscal and other assistance
measures.
A. FUNDING OF REPUBLIC SCHOOLS
Section 34. National Funds Public school shall continue to be funded from national funds: Provided,
That local governments shall be encouraged to assume operation of local public schools on the basis
of national fund participation and adequate revenue sources which may be assigned by the national
government for the purpose.
Section 35. Financial Aid Assistance to Public Secondary Schools The national government shall
extend financial aid and assistance to public secondary schools established and maintained by local
governments, including barangay high schools.
Section 36. Share of Local Government Provinces, cities and municipalities and barangays shall
appropriate funds in their annual budgets for the operation and maintenance of public secondary
schools on the basis of national fund participation.
Section 37. Special Education Fund The proceeds of the Special Education Fund accruing to local
governments shall be used exclusively for the purposes enumerated in Section 1 of Republic Act No.
5447, and in accordance with rules and regulations issued by the Ministry of Education, Culture and
Sports and the Ministry of the Budget. Said proceeds shall be considered a local fund and shall be
subject to Presidential Decrees No. 477, Presidential Decree No. 1375 and other applicable local
budget laws and regulations.
Section 38. Tuition and other School Fees Secondary and post-secondary schools may charge tuition
and other school fees, in order to improve facilities or to accommodate more students.
Section 39. Income from other Sources Government-supported educational institution may receive
grants, legacies, donations and gifts for purposes allowed by existing laws.
Furthermore, income generated from production activities and from auxiliary enterprises may be
retained and used for schools concerned in accordance with rules and regulations jointly issued
consistently with pertinent appropriation and budgetary laws by the Ministry of the Budget, the
Ministry of Education, Culture and Sports and the Commission on Audit.
B. FUNDING OF PRIVATE SCHOOLS
Section 40. Funding of Private Schools Private schools may be funded from their capital investment
or equity contributions, tuition fees and other school charges, grants, loans, subsidies, passive
investment income and income from other sources.
Section 41. Government Assistance The government, in recognition of their complementary role in
the educational system, may provide aid to the programs of private schools in the form of grants or
scholarships, or loans from government financial institutions: Provided, That such programs meet
certain defined educational requirements and standards and contribute to the attainment of national
development goals.
Section 42. Tuition and Other Fees Each private school shall determine its rate of tuition and other
school fees or charges. The rates and charges adopted by schools pursuant to this provision shall be
collectible, and their application or use authorized, subject to rules and regulations promulgated by
the Ministry of Education, Culture and Sports.
Section 43. Income from Other Sources Any private school duly recognized by the government, may
receive any grant and legacy, donation, gift, bequest or devise from any individual, institution,
corporation, foundation, trust of philanthropic organization, or research institution or organization as
may be authorized by law.
Furthermore, private schools are authorized to engage in any auxiliary enterprise to generate income
primarily to finance their educational operations and/or to reduce the need to increase students fees.
Section 44. Institutional Funds The proceeds from tuition fees and other school charges, as well as
other income of schools, shall be treated as institutional funds. Schools may pool their institutional
funds, in whole or in part, under joint management for the purpose of generating additional financial
resources.
C. INCENTIVES TO EDUCATION
Section 45. Declaration of Policy It is the policy of the State in the pursuit of its national education
development goals to provide an incentive program to encourage the participation of the community
in the development of the educational sector.
Section 46. Relating to School Property Real property, such as lands, buildings and other
improvements thereon used actually, directly and exclusively for educational purposes shall be
subject to the real property tax based on an assessment of fifteen per cent of the market value of such
property: Provided, That all the proceeds from the payment thereof shall accrue to a special private
education fund which shall be managed and disbursed by a local private school board which shall be
constituted in each municipality or chartered city with private educational institutions with the mayor
or his representative as chairman and not more than two representatives of the institutional
taxpayers, and, likewise, not more than two residents of the municipality or chartered city who are
alumni of any of the institutional taxpayers as members: Provided, further, That fifty percent of the
additional one percent tax on real estate property provided for under Republic Act 5447, shall accrue
to the special private education fund: Provided, finally, That in municipalities or chartered cities
wherein the number of private institutions with individual enrollment of pupils and students over five
thousand exceeds fifteen, the members of the private school board shall be increased to not more
than fourteen members determined proportionately by the Minister of Education, Culture and Sports.
The private school board shall adopt its own rules which shall enable it to finance the annual
programs and projects of each institutional taxpayer for the following purposes; student-pupil
scholarships; improvement of instructional, including laboratory, facilities and/or equipment; library
books and periodicals acquisition; and extension service in the community, in that order of priority.
Section 47. Relating to Gifts or Donations to Schools All gifts or donation in favor of any school,
college or university recognized by the Government shall not be subject to tax; Provided, That such
gifts or donations shall be for improvement of classrooms and laboratory of library facilities, and shall
not inure to the benefit of any officer, director, official, or owner or owners of the school, or paid out
as salary, adjustments or allowance of any form or nature whatsoever, except in support of faculty
and/or professorial chairs.
Section 48. Relating to Earnings from Established Scholarship Funds All earnings from the
investment of any duly established scholarship fund of any school recognized by the government,
constituted from gifts to the school, and/or from contributions or other resources assigned to said
fund by the school, if said earnings are actually used to fund additional scholarship grants to
financially deserving students shall be exempt from tax until the scholarship fund is fully liquidated,
when the outstanding balance thereof shall be subject to tax.
Section 49. School Dispersal Program All gains realized from the sale, disposition or transfer of
property, real or personal, of any duly established private school, college or university, in pursuance
of a school dispersal program of the government or of the educational institution as approved by the
government, shall be considered exempt from tax if the total proceeds of the sale are reinvested in a
new or existing duly established school, college, or university located in the dispersal site, within one
(1) year from the date of such sale, transfer or disposition; otherwise, all taxes due on the gains
realized from the transaction shall immediately become due and payable.
Section 50. Conversion to Educational Foundations An educational institution may convert itself into
a non-stock, non-profit educational foundation, in accordance with the implementing rules to be
issued jointly by the Ministry of Education, Culture and Sports and the Ministry of Finance.
In the case of stock corporations, if for any reason its corporate existence as an educational institution
ceases and is not renewed, all its net assets after liquidation of the liabilities and other obligations
may be conveyed and transferred to any non-profit educational institution or successor non-profit
educational institution or to be used in such manner as in the judgment of said court will best
accomplish the general purposes for which the dissolved organization was organized, or to the State.
D. ASSISTANCE TO STUDENTS
Section 51. Government Assistance to Students The government shall provide financial assistance to
financially disadvantaged and deserving students. Such assistance may be in the form of State
scholarships, grants-in-aid, assistance from the Educational Loan Fund, or subsidized tuition rates in
State colleges and universities.
All the above and similar assistance programs shall provide for reserve quotas for financially needed
but academically qualified students from the national cultural communities.
Section 52. Grant of Scholarship Pursuant to Existing Laws Educational institutions shall be
encouraged to grant scholarships to students pursuant to the provisions of existing laws and such
scholarship measures as may hereafter be provided for by law.
Section 53. Assistance from the Private Sector The private sector, especially educational institutions,
business and industry, shall be encouraged to grant financial assistance to students, especially those
undertaking research in the fields of science and technology or in such projects as may be necessary
within the context of national development.
IV. THE MINISTRY OF EDUCATION, CULTURE AND SPORTS
CHAPTER 1
GENERAL PROVISIONS
Section 54. Declaration of Policy The administration of the education system and, pursuant to the
provisions of the Constitution, the supervision and regulation of educational institutions are hereby
vested in the Ministry of Education, Culture and Sports, without prejudice to the provisions of the
charter of any state college and university.
Section 55. Organization The Ministry shall be headed by the Minister of Education, Culture and
Sports who shall be assisted by one or more Deputy Ministers.
The organization of the Ministry shall consist of (a) the Ministry Proper composed of the immediate
Office of the Minister, and the Services of the Ministry, (b) the Board of Higher Education, which is
hereby established, (c) the Bureau of Elementary Education, the Bureau of Secondary Education, the
Bureau of Higher Education, the Bureau of Technical and Vocational Education, and the Bureau of
Continuing Education, which are hereby established, (d) Regional offices and field offices, (e) the
National Scholarship Center and such other agencies as are now or may be established pursuant to
law, and (f) the cultural agencies, namely: the National Library, the National Historical Institute, the
National Museum, and the Institute of National Language. Such of the above offices as are created or
authorized to be established under this provision, shall be organized and staffed and shall function,
subject to the approval of the President, upon recommendation of the Minister of Education, Culture
and Sports in consultation with the Presidential Commission on Reorganization.
Section 56. The National Board of Education is hereby abolished, and its appropriations, personnel,
records, and equipment are hereby transferred to the Office of the Minister of Education, Culture and
Sports.
Section 57. Functions and Powers of the Ministry The Ministry shall:
1. Formulate general education objectives and policies, and adopt long-range educational plans;
2. Plan, develop and implement programs and projects in education and culture;
3. Promulgate rules and regulations necessary for the administration, supervision and regulation of
the educational system in accordance with declared policy;
4. Set up general objectives for the school system;
5. Coordinate the activities and functions of the school system and the various cultural agencies under
it;
6. Coordinate and work with agencies concerned with the educational and cultural development of
the national cultural communities; and
7. Recommend and study legislation proposed for adoption.
Section 58. Report to the Batasang Pambansa. The Minister of Education, Culture and Sports shall
make an annual report to the Batasang Pambansa on the implementation of the national basic
education plan, the current condition of the education programs, the adequacy or deficiency of the
appropriations and status of expenditures, the impact of education on the different regions, the
growth of enrollment, the adequacy of academic facilities, the concentration of low income groups, or
the supply of teaching and non-teaching personnel, with such comments and appropriate
recommendations thirty (30) days before the opening of its regular session.
CHAPTER 2
BOARD OF HIGHER EDUCATION
Section 59. Declaration of Policy Higher education will be granted towards the provision of better
quality education, the development of middle and high-level manpower, and the intensification of
research and extension services. The main thrust of higher education is to achieve equity, efficiency,
and high quality in the institutions of higher learning both public and private, so that together they
will provide a complete set of program offerings that meet both national and regional development
needs.
Section 60. Organization of the Board of Higher Education The Board of Higher Education is
reconstituted as an advisory body to the Minister of Education, Culture and Sports. The Board shall be
composed of a Deputy Minister of Education, Culture and Sports designated as Chairman and four
other members to be appointed by the President of the Philippines upon nomination by the Minister
of Education, Culture and Sports for a term of four years. The four members shall have distinguished
themselves in the field of higher education and development either in the public or private sector. In
the initial appointment of the non-ex officio members, the first appointee shall serve for a term of
four years; the second for a term of three years; the third for a term of two years; and the fourth for a
term of one year. The Director of the Bureau of Higher Education shall participate in the deliberation
of the Board but without the right to vote. The Bureau of Higher Education shall provide the Board
with the necessary technical and staff support: Provided, That the Board may create technical panels
of experts in the various disciplines as the need arises.
Section 61. Function of the Board of Higher Education. The Board shall:
1. Make policy recommendations regarding the planning and management of the integrated system of
higher education and the continuing evaluation thereof.
2. Recommend to the Minister of Education, Culture and Sports steps to improve the governance of
the various components of the higher education system at national and regional levels.
3. Assist the Minister of Education, Culture and Sports in making recommendation relatives to the
generation of resources and their allocation for higher education.
CHAPTER 3
THE BUREAUS
Section 62. Bureau of Elementary Education The Bureau shall perform the following functions:
1. Conduct studies and formulate, develop, and evaluate programs and educational standards for
elementary education;
2. Undertake studies necessary for the preparation of prototype curricular designs, instructional
materials, and teacher training programs for elementary education; and
3. Formulate guidelines to improve elementary school physical plants and equipment, and general
management of these schools.
Section 63. Bureau of Secondary Education The Bureau shall perform the following functions:
1. Conduct studies and formulate, develop and evaluate programs and educational standards for
secondary education;
2. Develop curricular designs, prepare instructional materials, and prepare and evaluate programs to
update the quality of the teaching and non-teaching staff at the secondary level;
3. Formulate guidelines to improve the secondary school physical plants and equipment, and general
management of these schools.
Section 64. Bureau of Technical and Vocational Education. The Bureau shall perform the following:
1. Collaborate with other agencies in the formulation of manpower plans;
2. Conduct studies, formulate, develop and evaluate post-secondary vocational-technical programs
and recommend educational standards for these programs;
3. Develop curricular designs and prepare instructional materials, prepare and evaluate programs to
upgrade the quality of teaching and non-teaching staff, and formulate guidelines to improve the
physical plant and equipment of post-secondary vocational-technical schools.
Section 65. Bureau of Higher Education The Bureau of higher Education shall perform the following
functions:
1. Develop, formulate and evaluate programs, projects and educational standards for a higher
education;
2. Provide staff assistance to the Board of Higher Education in its policy formulation and advisory
functions;
3. Provide technical assistance to encourage institutional development programs and projects;
4. Compile, analyze and evaluate data on higher education; and
5. Perform other functions provided for by law.
Section 66. Bureau of Continuing Education As the main implementing arm of the non-formal
education programs of the Ministry, the Bureau shall provide learning programs or activities that
shall:
1. Serve as a means of meeting the learning needs of those unable to avail themselves of the
educational services and programs of formal education;
2. Provide opportunities for the acquisition of skills necessary to enhance and ensure continuing
employability, efficiency, productivity, and competitiveness in the labor market;
3. Serve as a means for expanding access to educational opportunities to citizens of varied interests,
demographic characteristics and socio-economic origins or status.
CHAPTER 4
REGIONAL OFFICES
Section 67. Functions A regional office shall:
1. Formulate the regional plan of education based on the national plan of the Ministry taking into
account the specific needs and special traditions of the region;
2. Implement education laws, policies, plans, programs, rules and regulations of the Ministry or
agency in the regional area;
3. Provide economical, efficient and effective education services to the people in the area.
V. MISCELLANEOUS PROVISIONS
CHAPTER 1
PENAL ADMINISTRATIVE SANCTIONS
Section 68. Penalty Clause Any person upon conviction for an act in violation of Section 28, Chapter
3, Title III above, shall be punished with a fine of not less than two thousand pesos (P2,000.00) nor
more than ten thousand pesos (P10,000.00) or imprisonment for a maximum period of two (2) years,
or both, in the discretion of the court.
If the act is committed by a school corporation, the school head together with the person or persons
responsible for the offense or violation shall be equally liable.
Section 69. Administrative Sanction The Minister of Education, Culture and Sports may prescribe and
impose such administrative sanction as he may deem reasonable and appropriate in the
implementing rules and regulations promulgated pursuant to this Act for any of the following causes:
1. Mismanagement of school operations;
2. Gross inefficiency of the teaching or non-teaching personnel;
3. Fraud or deceit committed in connection with the application for Ministry permit or recognition;
4. Failure to comply with conditions or obligations prescribed by this Code or its implementing rules
and regulations; and
5. Unauthorized operation of a school or course, or any component thereof, or any violation of the
requirement governing advertisements or announcements of educational institutions.
Sanctions against the schools shall be without prejudice to the interest of the students, teachers and
employees.
CHAPTER 2
ADMINISTRATIVE PROVISIONS
Section 70. Rule-making Authority The Minister Education, Culture and Sports charged with the
administration and enforcement of this Act, shall promulgate the necessary implementing rules and
regulations.
Section 71. Separability Provision Any part or provision of this Act which may held invalid or
unconstitutional shall not affect its remaining parts of provisions.
Section 72. Repealing Clause All laws or parts thereof inconsistent with any provision of this Act
shall be deemed repealed or modified, as the case may be.
Section 73. Effectivity This Act shall take effect upon its approval.
Approved, September 11, 1982.

REPUBLIC ACT NO. 7798

AN ACT AMENDING SECTION 25 OF BATAS PAMBANSA BLG. 232, OTHERWISE KNOWN AS THE
"EDUCATION ACT OF 1982"

SECTION 1. Section 25, Chapter 3 of the Education Act of 1982 is hereby amended to read as
follows:chan robles virtual law library

"Sec. 25. Establishment of Schools. All schools shall be established in accordance with law.The
establishment of new national schools and the conversion of existing schools from elementary to
national secondary schools or from secondary to national secondary or tertiary schools shall be by
law: Provided, That any private school proposed to be established must incorporate as either a non-
stock or a stock educational corporation in accordance with the provisions of the Corporation Code of
the Philippines.This requirement to incorporate may be waived in the case of family-administered
pre-school institutions.
chan robles virtual law library
"Provided, That the minimum paid-up capital for stock educational institutions for those engaged in
elementary education shall not be less than One million pesos (P1,000,000.00); not less than Two
million five hundred thousand pesos (P2,500,000.00) for those offering both elementary and
secondary education; and not less than Five million pesos (P5,000,000.00) for those offering
elementary, secondary and tertiary and postgraduate courses, except existing educational institutions
organized as stock corporations which may retain their original capitalization.chan robles virtual law
library
"Existing educational institutions organized as stock corporations may automatically apply for renewal
of their corporate existence when the original period is about to expire.
"Provided, finally, That stock educational institutions may be allowed only in capital-intensive courses
of study as may be determined by the Department of Education, Culture and Sports, the Commission
on Higher Education, and the Department of Science and Technology, as the case may be.
"Any school that is established or organized as a stock corporation shall be ineligible for any form of
government subsidy, incentive or assistance, except those given to individual students and teachers in
the form of scholarships, student loans or other forms of subsidy as already mandated under existing
laws.Government assistance to non-stock schools for educational programs shall be used exclusively
for that purpose. chan robles virtual law library
"Taxes shall not be due on donations to educational corporations."

Sec. 2. The Department of Education, Culture and Sports and the Commission on Higher Education, as
the case may be, are hereby authorized to formulate within sixty (60) days from the approval of this
Act implementing rules and guidelines governing the establishment and operation of stock
educational corporations that may be organized pursuant to this Act with particular emphasis on
meeting the objectives of quality education and academic excellence provided for by the provisions of
Batas Pambansa Blg. 232, otherwise known as the Education Act of 1982.


Sec. 3. All laws, rules and ordinances inconsistent with this Act are hereby repealed or modified
accordingly.chanrobles virtual law library

Sec. 4. This Act shall take effect fifteen (15) days after its publication in at least two (2) national
newspapers of general circulation.