To: Bureau Directors
Regional Directors
President and Heads of Schools, Colleges and Universities

1. Until Congress shall have enacted the legislation on assistance to students in private education, pursuant to the bill proposals of Senator Edgardo J. Angara, in the Senate, and Congressman Carlos M. Padilla, in the House, both the results of several region-wide consultations conducted by the respective Committees on Education of both houses, and as certified by the President of the Philippines, these transitional guidelines to govern school fees for SY 1989-90, are hereby promulgated:
   1. Statement of Policy: It is the declared policy of the State:
      1. To reaffirm government’s responsibility to provide basic elementary and secondary education to all deserving children of school age and to develop the professions needed for national and regional development and to train and provide skills to its citizens for productive endeavor and gainful work;
      2. To foster quality education, at all levels, and promote democratization of access to educational opportunities for all
         Filipino citizens;
      3. To reinforce the complementary roles of public and private educational institutions in the educational system and to recognize the invaluable contribution that the private schools have made and will make to the education of all Filipinos.
   2. School Fees for Elementary Schools: For school year 1989-90.
      1. Where current school fees (tuition and other fees) are less than P800, any elementary school may increase up to a maximum of P175.00 per school year;
      2. Where current school fees (tuition and other fees) are less than P800 and P1,500, any elementary school may increase up to a maximum of P150.00 per school year;
      3. Where current school fees (tuition and other fees are beyond P1,500, per year, the amount of increase shall be determined by the school after consultation with the parents.
      4. Since no government assistance is anticipated for elementary schools, the increase may be collected at the beginning of the school year.
   3. School Fees for High Schools: For school year 1989-90.
      1. Where current school fees (tuition and other fees) are less than P800, any high school may increase up to a maximum of P175.00 per school year;
      2. Where current school fees (tuition and other fees) are from P800 and P1,500, any high school may increase up to a maximum of P150.00 per school year;
      3. Where current school fees (tuition and other fees) are beyond P1,500, per year, the amount of increase shall be determined by the school after consultation with the parents.
      4. In case of government assistance for schools charging below P1,500, the qualified student shall be entitled to the maximum amount of assistance prescribed by law to be applied towards the payment of the increased fees collected by the school; provided, that the student pays the same amount of tuition and other fees be paid the preceding school year (SY 1988-89).
   4. School Fees for Tertiary Schools: For school year 1989-90.
      1. For all incoming freshmen, the amount of increase shall be determined by the school after consultation with students and parents;
      2. Where the per unit tuition rate is P80.00 or less, the school may increase up to a maximum of P8.00 per semestral unit, or in the event of new mandated wage increases, by an amount needed to ensure compliance thereof;
      3. Where the per unit tuition rate is more than P80.00 the amount of the increase shall be determined by the school after consultation with the parents and students.
   5. School Fees for Accredited Schools in All Levels:
      1. Until or unless the law provides otherwise, all accredited elementary, secondary and tertiary schools, as certified by the Federation of Accrediting Agencies of the Philippines (FAAP) shall determine the rates of its own tuition and other fees, subject to DECS rules and regulations.
      2. For accredited high schools charging below P1,500 per year, they may opt to determine their own rate of increase but receive no government subsidy.
      3. For accredited tertiary schools charging below P80.00 unit, their non-freshmen student enrolled in priority courses may receive the government assistance as provided by law regardless of the rates of increase as determined by the school.
   6. Allocation and Use of Increases: Any incremental proceeds to the school’s tuition and other school fees, whether paid by the student or the Government, at least seventy percent (70%) thereof shall be distributed for increases in salaries or wages, merit, increases, salary adjustments, and fringe benefits of all its school personnel as provided by law, collective bargaining agreements, or voluntary employer practices, including accruals to the 13th month pay, social security, medicare and retirement contributions, (exclusive of the employers’ share).
   7. Schools’ Student Assistance Program: In addition to existing Government Scholarship (PESFA) and educational service contracting (ESC) programs, and other government student assistance programs, each school shall administer its own student assistance program based on merit (for selected levels of achievement) and equity (for financially disadvantaged by deserving for at least five per cent (5%) of the total enrolment of the incoming freshmen.
   8. Supporting Documents: All private schools, colleges and universities intending to collect increases in its current school fees, shall submit, not later than June 7, 1989, to the DECS Regional Office, the following documents:
      1. Letter of Advice from the school head together with:
         1. Schedule of Current School Fees (SY 1988-89);
         2. Schedule of Increases for SY 1989-90, indicating in peso terms the amounts therefore;
         3. Schedule of Allocation and Use of the Incremental Proceeds indicating the specific amounts and purposes;
         4. Budget of Revenues and Disbursements based on the projected collections of Current School Fees and the proposed increases.
      2. Documentation of the consultation meeting on the adopted increase with parents at the elementary and secondary levels, and with parents and students at the tertiary levels.
   9. Government Assistance to Students in Private
      1. In case of Government Assistance to students in private education, in SY 1989-90, all eligible students shall be given a voucher with a value equivalent to the authorized increases on current school fees as provided in these guidelines.
   10. Effectivity of Collection: All current tuition and other fees and its corresponding increases shall be collectible upon the opening of classes of any school year, semester or trimester, and in case of government assistance, the increases collected during the school year, semester or trimester shall reimbursed by the school to the student who has an educational voucher or the voucher shall be sued for future payments for the trimester, semester or school year.
2. Repealing Clause: Any existing order, memorandum, or any section, sub-section or clause therein, which are inconsistent with these Guidelines, are deemed repealed or amended accordingly.
3. Effectivity. This Order shall take effect upon its approval.

APPROVED. May 15, 1989

(SGD.) LOURDES R. QUISUMBING
Secretary

Reference: DECS Orders: (No. 46, s. 1988)
Allotment: 1-4–(M.O. 1-87)

To be indicated in the Perpetual – Index under the following subjects:
AMENDMENT
AUTHORITY
CHANGE
FEES

DO_s1989_046