A study called for a redesign of the educational subsidy under the Universal Access to Quality Tertiary Education Act (UAQTEA), suggesting a shift to a voucher system or a socialized tuition fee model to support both students and schools.
Philippine Institute for Development Studies (PIDS) senior research fellow Connie Bayudan-Dacuycuy, University of the Philippines Diliman assistant professor Herisadel Flores and De La Salle University professor Arnel Onesimo Uy, in a study titled “Financial Sustainability of Higher Education Institutions in the Philippines: Issues, Challenges, and Opportunities,” said the current free tuition policy in state and local universities and colleges (SUCs and LUCs) has unintentionally disadvantaged private higher education institutions (HEIs).
“While competition improves the quality of educational products and services, some policies embedded in the UAQTEA, like the free tuition fees in SUCs and LUCs, have unintentionally favored public HEIs,” the authors said.
They recommended shifting from a system that funds schools to one that provides direct financial assistance to students. This, they said, would empower students to choose the school that best suits their needs, creating a more equitable, accessible and sustainable higher education system.
The study emphasized the importance of ensuring the financial sustainability of HEIs for the country’s development. It recommended that the government implement long-term policies to align HEIs’ development plans with national goals, allowing both public and private institutions to invest strategically in infrastructure and human resources.
The study also highlighted the financial instability of LUCs, citing their lack of legal entity and fiscal autonomy. It recommended enacting national legislation to provide LUCs with the financial and operational independence needed to thrive.
“Establishing pathway systems relies on the strength and continuity of partnerships and trust between HEI leaders, highlighting the importance of achieving stability in LUCs’ governance and operations, and promoting trust through enhanced transparency and accountability,” the authors said.
