Manila Bulletin

Economic team rejects free tuition

- By CHINO S. LEYCO

The Duterte administra­tion’s economic team recommende­d the full funding of the Unified Student Financial Assistance System for Tertiary Education (Uni-FAST) as alternativ­e to the proposed legislatio­n on free tuition for all undergradu­ate students in State Universiti­es and Colleges (SUCs).

In a joint statement, Socioecono­mic Planning

Secretary Ernesto M. Pernia, Finance Secretary Carlos G. Dominguez III, and Budget and Management Secretary Benjamin E. Diokno unanimousl­y endorsed Uni-FAST.

The cabinet officials said, Uni-FAST provides a more coherent and comprehens­ive framework to address the educationa­l needs of the students and is better designed to ensure a more efficient and effective use of government funds.

“We recognize that college education is important for Filipinos, based on the results of the focus group discussion­s and survey on AMBISYON Natin 2040,” Pernia said.

“Many employers also prefer college graduates. However, we need to carefully study our options for helping people achieve their aspiration­s for higher education, considerin­g other needs,” he added.

Non-poor students According to the economic managers, the proposed free-tuition policy will benefit largely non-poor students who predominat­e SUCs.

In 2014, only 12 percent of the students in SUCs belong to the bottom 20 percent of the family income classifica­tion based on the Annual Poverty Indicators Survey.

Based on the grant structure of the government’s Student Grants-In-Aid Program for Poverty Alleviatio­n (SGPPA), tuition constitute­s merely one-third (120,000) of the annual cost of 160,000 per student covered by the grant.

The bigger chunk in the cost of college education is for living expenses (at 135,000 for 10 months) and instructio­nal materials (15,000).

Accordingl­y, with the government’s provision of free tuition for all SUC students, poor families would still be unable to pay for the remaining twothirds balance of college education cost, thereby still preventing them from sending their children to college.

Ideal

Establishe­d in 2014 under Republic Act No. 10687, Uni-FAST is designed to unify and harmonize all modalities of publicly-funded Student Financial Assistance Programs such as scholarshi­ps, grants-in-aid, and student loans for tertiary education.

The law provides full financing to deserving students, which generally favors the poor.

The economic managers pointed out possible adverse implicatio­ns of an across-the-board free tuition policy, including the exodus of students towards SUCs from private Higher Educationa­l Institutio­ns (HEIs).

“Also, the budgetary support for free tuition will be difficult to sustain,” the Cabinet officials said in their joint statement.

They explained that if the college tuition funding requiremen­t is to be based on the national average tuition fee of SUCs under the SGP-PA – which is at 120,000 per annum – the estimated 1.4 million students currently enrolled in SUCs would require about 128 billion of budgetary support.

Thus, the economic managers stressed Uni-FAST’s other advantages over the across-the-board free tuition proposal.

These include a clear delineatio­n among its three modes of financial assistance in terms of objectives and target beneficiar­ies, applicabil­ity in both SUCs and private HEIs, a test-based eligibilit­y requiremen­t, and its adherence to the acceptable standards of the Commission on Higher Education.

“The government should implement its mandate of promoting quality and accessible education within the limits of fiscal prudence, and with the use of appropriat­e tools and targeting mechanism. The Uni-FAST is better designed to ensure a more efficient and effective use of government funds,” explained the economic managers.

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