Make sure free education benefits the poor, business group urges

Rethink the free public university tuition policy, strengthen the financial assistance system, and redirect efforts to help ensure that those who finish college – especially the poor – can land meaningful jobs, the Philippine Business for Education (PBEd), a non-profit organization that targets edu-

cation reform, urged the government yesterday.

Specifically, PBEd asked government to reconsider Senate Bill 1304 or the Free Higher Education for All Act because it might lead to “unintended consequences.”

“The Philippine business community is one with government and especially the senators in their push for greater access to quality tertiary education,” the PBEd statement said.

It, however, aired concern that the proposed policy in its current form “will lead to unintended consequences counter to the spirit of the policy, the organization added.

Tuition-free policy

On March 13, the Senate passed on third and final reading a bill that will provide full tuition subsidy for students in state universities and colleges (SUCs). Senators approved the Senate Bill 1304 which seeks to institutionalize a tuition-free policy in the 112 SUCs nationwide.

“Importantly, more years of quality education is a means for many to improve their economic situation [so] we, therefore, applaud the intentions of the proponents of the policy on free tuition in state universities and colleges (SUCs) and commend their goal of improving the lives of every Filipino through universal access to higher education,” the organization added.

However, PBEd shares the concerns pointed out by economists regarding the free tuition policy. “We need to ensure that the policy benefits the poor who need it the most,” it explained.

Funding gaps

PBEd said that the policy “should therefore also aim to increase the small share of the poor” in the total enrollment in public higher education institutions (HEIs).” “Given that poor students have identified out-of-pocket expenses as the top deterrent to staying in HEIs, whether public or private, we should additionally close other funding gaps to ensure retention and graduation,” it added.

The organization added that “increased educational access should be coupled with mechanisms to improve quality in support of the country’s competitiveness.”

PBED said that the country needs to “reverse the trend we are currently seeing in the labor market, where 23 percent of our unemployed youth are college educated and vacancies are increasingly more difficult to fill, as employers cannot find the right people with the right skills.”

Strengthen financial assistance system

The organization added that instead of the free tuition policy, the government can strengthen the Unified Student Financial Assistance System for Tertiary Education (UniFAST) Law.

The group proposed that government adds “more funds to a voucher system that covers the total cost of tertiary education for use in both public and private institutions, on priority tech-voc and college programs for national development.”

PBEd also suggested that the government should consider “leverage state funding to foster competition among HEIs” by setting up quality and outcome-based measures. Also, the government can “encourage partnerships by incentivizing industry, academe, and government to collaborate on the provision of relevant education programs and skills training.”

Formed in 2006 by the country’s top CEOs, PBEd’s advocacy includes teacher quality improvement, workforce development, and curricular reform.