This story was taken from Bulatlat, the Philippines's alternative weekly newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. V, No. 16, May 29-June 4, 2005


 

Tuition Hike Freeze? CHEd Must Be Joking

School owners are finding more ways to make money. They have been jacking up miscellaneous fees in place of tuition hikes to evade controversy – and rake in bigger profits in return.

By Carl Marc Ramota
Bulatlat

It looks like school owners are finding more ways to make money. They have been jacking up miscellaneous fees in place of tuition hikes to evade controversy – and rake in bigger profits in return.

Such shrewd business move has been proven to be very profitable to school owners. Unlike tuition, miscellaneous fee hikes have remained unchecked for the last years.

Hounded by persistent protests by both students and parents, the Commission on Higher Education (CHEd) has finally flexed its muscle on runaway school fee increases. Under the new CHED Memorandum Order (CMO) No. 14, other school fees and new charges are now included in the guidelines to be observed by tertiary schools applying for fee hikes.

At first glance, CHEd’s memo appears to make the commission now on its toes regulating excessive increases and imposition of miscellaneous fees. The new guidelines’ very provisions tell us otherwise, however.

Absurd fees

Rizza Ramirez, national president of the National Union of Students of the Philippines (NUSP), this weekend said schools are posing zero or minimal increase in tuition every school opening to attract more enrollees and avoid much controversy but they bloat miscellaneous fees.

“This explains why school owners are able to steer clear of tuition hikes and still manage to scrape up bigger profits annually,” Ramirez said.

CHEd’s partial report June last year shows that miscellaneous fees swelled by 140 percent, which cover for its nine basic components. The average percentage increase has not yet included the data from NCR, CAR, CARAGA, ARMM, and Regions III and VII.

Even Roger Perez, former CHEd executive director, admitted in an interview with a national daily last year that most tertiary schools are charging students with various fees, "from the ridiculous to the sublime."

Perez said some school fees were “downright ridiculous,” citing “energy fee,” “guidance and counseling fee,” “aircon fee,” “social action fee” and “building fee” as examples.

In CHEd’s monitoring last year, eight schools in 10 regions charge an average of P349.04 energy fee. The University of Sto. Tomas, by charging P800 for energy fee alone, is able to amass P24 million every semester from its 30,000 population.

There are also 37 private colleges and universities which impose an average P49.70 as insurance fee.

In the same report, eight schools were purportedly charging an average P331.28 as internet fee.

But the worst, according to Perez, is the development fee, which he said, “can never be explained.”

Also in CHEd’s monitoring, 34 schools collect an averafe of P318.91 development fee last school year. One of the schools, St. Scholastica’s College, charges a P600 development fee.

Miscellaneous Fees  (A.Y. 2004 – 2005)
Source: CHED-OSS

Item

Ave. Cost

Ave. % of hike

Registration

P263.84

14.22

Library

P300.66

15.94

Medical/dental

P156.76

12.64

Athletics

P136 .45

16.14

Audio Visual

P227.67

12.74

Guidance

P179.35

12.48

Laboratory

P592.59

13.13

NSTP

P322.20

15.92

ID

P118.12

28.67

The new “development fee,” the former CHEd director narrated, all started a few years ago when some engineering schools found themselves unable to repay their World Bank loans due to high interest rates, thus forcing their students pay a "development fee."

Meanwhile, Ramirez pointed out that schools are collecting various fees for expenses that were supposed to be part of the school’s capital outlay and are already covered in the basic tuition. “These fees are not only questionable, they are superfluous. School owners are becoming more creative in inventing new fees to justify their lust for profit,” she said.

Among the most absurd fees that schools collect are the postal fee, insurance fee, Smart fee and copier fee in AMA Computer University; power charge fee in Trinity College; Power Plant development fee in Miriam College; Land Infrastructure Maintenance and Acquisition Development fee in Baguio Colleges Foundation; accreditation fee in Technological Institute of the Philippines; and pre-registration fee in Aquinas University in Albay.

Regulation?

CHEd has its own formula for solving the anomalous fees: Its new guidelines also put a cap on unabated miscellaneous fee increases. Similar to tuition, the cap will be based on the prevailing inflation rate. The country’s inflation rate last April is pegged at 8.5 percent.

However, CMO No. 14 also stipulates that tuition and miscellaneous fee increases that are less than or equivalent to the current inflation rate will not be subjected to consultation. Only increases that exceed the prevailing year’s average inflation rate shall require a consultation process.

NUSP’s Ramirez said the CHEd memo will only legitimize yearly hikes in miscellaneous fees. “School owners can automatically increase school fees of all sorts as long as it’s within the range of the inflation rate,” she warned.

Under the new memo, Ramirez said, school owners can legally increase miscellaneous fees for every item without any restraint as long as it is less than or equivalent to the country’s inflation rate.

“CHEd failed to recognize that miscellaneous fees don’t come in one package but are charged in separate items. Instead of regulating runaway school fee hikes, the new CHEd memo is even more vulnerable to abuse by school owners,” she said.

“Worse, CHEd has now declared legal the collection of dubious fees such as energy, development and insurance fees in its new guidelines,” Ramirez said.

“CHEd has also included vague items such as fees for ‘related learning experience’ and ‘study tours,’ which have already been exposed as a scheme for some teachers and school officials to earn money,” the NUSP leader said. “Instead of abolishing exorbitant fees, it seems that CHEd is allowing schools to collect more fees as the ‘other school fees’ definition in the new guidelines is indefinitely ended by the word ‘et cetera’ (etc.).”

Miscellaneous fee hikes in SUCs

Meanwhile, Anak ng Bayan Youth Party Vice President Raymond Palatino revealed that state colleges and universities (SCUs) are confronted with a similar trend. He said for the last years, SUCs experienced the biggest increases in tuition and miscellaneous fees due to meager budget.

Palatino expressed fears over CHEd’s new memorandum, saying the ambiguous provision on miscellaneous fees in CMO No. 14 will lead to bigger hikes in miscellaneous fees and the imposition of more exorbitant fees in SUCs.

“Since there is a moratorium on tuition hikes this year in SUCs and there are huge cuts in their budget, SUC administrators will likely increase miscellaneous fees and impose new fees to compensate for the meager budget,” he said.

“In recent years, the drastic shift away from public funding of colleges and toward private funding of these institutions resulted in the biggest increases in tuition and miscellaneous fee in public higher education institutions, particularly SUCs,” he added.

PUP PROCESSING FEE INCREASES
Source: PUP Office of the University Registrar; Accounting Office

FEES

BEFORE

NOW

PERCENTAGE
INCREASE

Late Payment

P10

100

900 %

Diploma

50

100

60 %

Graduation Fee

50

200

150 %

Certification

20

50

150 %

Transcript of Records (per page)

10 (all pages)

50 (per page)

400 %

Readmission

25

50

100 %

Scannable Form

5

20

300 %

Verification of Grades

5

50

700 %

Accreditation Per Unit

5

12

140%

PUP College Entrance Test
(PUPCET)

100

300

200 %

Retrieval

0

100

 

Change of Curriculum

0

100

 

Overload per Subject

0

20

 

Change of Schedule

0

20

 

Palatino also revealed that some SUCs are collecting fees which are more expensive than their basic tuition per unit.

He cited the Polytechnic University of the Philippines (PUP) as an example. PUP tuition remains at P12 per unit or P252 for a student with a 21-unit full load. However, the school administration imposed increases in processing fees last school year. The biggest increase was for the fine for late enrolment, from P10 to P100.

Originally, a transcript of records (TOR) will cost a PUP student only P10. But with the new rates, he or she will now have to shell out P50 for each page of the TOR. On the other hand, a graduating student now has to pay P200 for graduation fee from only P50 in 2003.

PUP also charged new fees which include payments for shifting form, verification of grades per subject, re-admission fee and change of subject/curriculum/schedule.

NUSP’s monitoring meanwhile revealed that development fee is also being collected in some SUCs like the University of Northern Philippines in Vigan and Samar State Polytechnic College which collect P200 for the fee.

Laboratory fees have also been very profitable for SUC administrators. In five departments and colleges in UP, laboratory fees have increased from 0-P50 to P500-P600.

Tuition in UP graduate schools also increased in 2001, from P300 per unit to a maximum of P700, a 66.67 to 400 percent hike.

“Unless the government and CHED start to genuinely regulate miscellaneous fees, any tuition hike moratorium will be useless as school administrators can easily bloat other fees to rake in big profits,” he said.

Palatino also urged CHEd to abolish exorbitant fees being charged in schools and penalize schools which will continue to impose questionable fees on students. Bulatlat

 

 

© 2004 Bulatlat  Alipato Publications

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