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

1. DECLARATION OF POLICY
   It is the declared policy of the state in conformity with the mandate of the Constitution, to promote and enhance the quality of education at all levels and to take appropriate steps to make such education accessible to all. The state also recognizes the invaluable contributions of the private institutions as well as their complementary role with public schools in the education system. For the above purposes, the State shall provide mechanisms to maximize existing resources of private education, deregulate private schools to the fullest extent consistent national policy and prescribe reasonable requirements for the accountability of private school administrators.
2. GENERAL PROVISIONS
   2.1 These guidelines covering tuition and/or other fees are hereby promulgated for school year 1990-91 and shall be enforceable and in effect until otherwise changed, modified or repealed.
   2.2 Tuition increases, shall be used to cover expenses for the cost of instruction, including, but not limited to salaries for faculty and wages for non-teaching personnel, thirteenth monthly pay and other benefits as herein provided, except those with respect to other fees which should be held in trust and spent for the purposes for which they have collected
   2.2.1 Tuition subsidies or tuition increases shall be allocated as follows:
   2.2.1.1 70% of the amount subsidized allotted for tuition or of the tuition 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.
   2.2.1.2 20% shall go to the improvement or modernization of buildings, equipment, libraries, laboratories, gymnasium and similar facilities and to the payment of other costs of operation.
3. SPECIFIC PROVISIONS
   3.1 Starting SY 1990-91 tuition and/or other fees of all incoming freshmen in all levels are deregulated subject to consultation as defined in Section 4.1 hereof.
   3.2 Schools enrolling students in second, third and fourth year this school year 1990-91 may increase tuition and other fees provided that the increase is not more than one-half of the inflation rate as of May 1990 officially released by NEDA based on fees charged during the year immediately preceding or when the increase is fully covered by the subsidy. However, if the increase is more than half of the inflation rate or is not fully covered by the subsidy, consultation shall be required.
   3.3 For schools desiring to increase their tuition and/or other fees beyond what is provided for in section 3.2, but whose programs are below Level II accreditation, the following subject to consultation, must be submitted to DECS REGIONAL OFFICES for evaluation and approval/disapproval. No school may collect any increase in tuition and other fees prior to DECS approval. Deadline for filling of application must be later than June 30, 1990.
   3.3.1 Schedule of tuition and other fees of the previous year
   3.3.2 Schedule of proposed increase of tuition and other fees for the current year.
   3.3.3 Audited financial statements for three (3) years immediately preceding the current year.
   3.3.4 The processing of the above shall be undertaken by the respective Regional Directors. Decision of Regional Directors perceived by any of the portions concerned as unfair, may be elevated to the DECS CENTRAL OFFICE for final review and decision.
   3.4 Schools with at least Level II accredited programs as of May 1990 are deregulated with respect to these programs. They shall be allowed to determine their rates of tuition and other school fees for said accredited programs, subject to consultation.
   3.5 Schools applying for increases only in other fees and not in tuition shall be subjected to the same principles and provisions as those applying for increases in tuition.
4. Government Tuition Fees Supplements
   Financial assistance for tuition for students in private high schools and private colleges and universities shall be provided by the Government as follows:
   4.1 For students enrolled in high schools which charged less than one thousand five hundred pesos (P3,500) per year in tuition and other fees during school year 1998-99 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 SY 1990-91 tuition and other fees equal to the tuition and other fees paid during the preceding academic year.
   4.2 For non-freshmen students enrolled in priority courses as determined by DECS, in private colleges and universities that charged an effective per unit tuition rate of eighty pesos (P80.00) or less in SY 1988-89 or such amount in subsequent years as may be determined by SAC, the Government shall provide each student with a voucher to cover the tuition increase, up to twelve pesos (P12.00) per unit, provided that such assistance shall be given only to students who have completed one academic year in priority course and shall not apply to future college students and to current college students who shall transfer to school outside of their regions.
5. CONSULTATION
   As defined in the Order, Consultation shall mean a conference conducted by the school administration with duly organized parent-teacher associations and faculty associations with respected to secondary schools and with student governments or councils, alumni and faculty associations with respect to colleges.
   5.1 For incoming freshmen in all private schools and colleges, consultation shall be made with parents, students and the alumni of the school, as stipulated in Section 10 of Republic act 6728.
   5.2 The consultation process involves at least one week’s notice to all the parties above mentioned. A meeting of all sectors is scheduled and a discussion of the proposed tuition increase and reaction of the proposed tuition increase and reactions thereto are undertaken. Every sincere effort shall be exerted to ventilate the opinions and reactions of all sectors concerned.
   5.3 In case of disagreement, parties involved may choose the alumni association of the school or any other impartial body of their choice as arbitrator.
   5.4 Any of the parties in disagreement with the decision of the arbitrator may elevate the decision to DECS Central office that shall make the final decision.
6. SANCTION
   6.1 In case of any violation of the provisions of the above mentioned guidelines, DECS, upon the recommendation of the council, may bar the institution from participating in or benefiting from participating in or benefiting from the 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.
   6.2 Any school that shall refuse to furnish copies of its audited financial statements to concerned sectors in the process of consultation prior to tuition increases, shall forfeit its right to increase its tuition fees, in addition to other penalties or sanctions as may be imposed by DECS.
7. This Order supersedes DECS Order Nos. 37 and 43, series of 1990 as well as all other DECS issuances inconsistent herewith.
8. This Order takes effect immediately.

(SGD.) ISIDRO D. CARIÑO
Secretary

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