The largest private school groups in the Philippines have issued an open letter to legislators appealing for the reconsideration of the passage of Senate Bill 1359 or the No Permit, No Exam (NPNE) Prohibition Act, which was approved on third reading on March 20, 2023.
The open letter was signed by the Catholic Educational Association of the Philippines (CEAP), Philippine Association of Colleges and Universities (PACU), Philippine Association of Private Schools, Colleges, and Universities (PAPSCU), Association of Christian Schools, Colleges, and Universities (ACSCU), and Unified TVET of the Philippines, Inc (UniTVET).
In the letter, the private schools reiterated the dangers that prohibiting “No Permit, No Exam” policies will cause, including forcing many private schools to close down.
“Prohibiting No Permit, No Exam (NPNE) policies will thus endanger the sustainability of private schools. Schools will not have a steady cash flow, because the incentive to pay on time is removed, and parents and students will have the option to delay payment. Simulations show that private schools will run out of operating cash after just over two months, after which they will need to find other sources of financing (e.g., loans) or delay payment of operational expenses (e.g., salaries),” the private schools stated.
“A NPNE prohibition will adversely affect the schools’ viability, ultimately leading to reductions in investments, scaled-back operations, or closure. These would result in unemployment for teachers and staff. Displaced students will add to an already overburdened public education system,” they added.
The schools also pointed out that despite the NPNE policies, they are already extending accommodations to students, who cannot pay their tuition fees on time.
“Schools allow enrollment upon payment of a small fraction of the tuition fees, with the rest to be paid on an installment basis. Promissory notes allow students to take exams if they cannot yet afford to pay. These systems have been in place for decades. They provide a fair balance between ensuring the students’ education and keeping the school afloat,” they explained.
In another statement, the University of Mindanao (UM), the biggest private school in Mindanao, also expressed opposition to the passage of SB 1359.
UM Chairman Dr. Guillermo Torres Jr. said that the measure has far-reaching consequences on the finances of private schools.
“Tuition fees are the lifeblood of private schools and their major source of cash to pay for faculty and non-teaching staff salaries, light and power, other utilities, security and janitorial services, and other operating expenses. Once students stop or delay paying their tuition fees, private schools will run out of cash and be forced to borrow from banks and other lenders,” he said.
“If taxes are the lifeblood of the government, tuition fees are the lifeblood of private schools. If private schools will be deprived of their ability to collect, they will slowly die,” Torres added.
Similarly, the Cebu Institute of Technology (CIT) University issued a statement strongly opposing the NPNE Prohibition Bill.
CIT University explained that the said measure is going to be “deadly” for them and other private schools that are still struggling from the effects of the COVID-19 pandemic and Typhoon Odette, which hit the region in late 2021.
“Facing another threat of government regulation of “No Permit No Exam Ban” is deadly, especially at this period when the school needs more funds to complete the rehabilitation of its campus, physical facilities, and even the bolstering of its online capability for the post-COVID learning approaches and the internationalization imperatives,” the statement read.
“Can re-building infrastructure stop if collection cannot provide the needed funds? Will the government, the partner of private education, intervene with an immediate fund infusion to mitigate financial starvation?,” it further said.
The CIT University also appealed to lawmakers to re-examine the long-term consequences of the proposed bill. They expressed concern that if the bill is passed, nothing can prevent even those who can afford to pay from delaying payment.
CIT emphasized that, “The lack of liquidity will thus force schools to borrow with interest, raising the cost of private education to the detriment of the families in the economic fringes but desirous of availing the boon of the private education brand.”
“The means should not be destructive, but rather, supportive of the growth of the private sector that contributes significantly to the economy and social well-being of the country. It would be a national tragedy if well-meaning and purposive schools, faithful to their vision and mission, would wither in the vine if the time-honored ‘State’s Partner’ Policy were abandoned,” the CIT University stated.