Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
The gross enrolment ratio for tertiary education for both sexes in the Philippines is 47.41% as of 2024. The most recent data for initial government funding per tertiary student as a percentage of GDP per capita was for 2010 at 10.32%.
Tuition-free status
Republic Act No. 10931 on Universal Access to Quality Tertiary Education waived tuition and other mandatory fees for students in State Universities and Colleges (SUCs), Local Universities and Colleges (LUCs), and state-run TVET institutions. Students are eligible for their first bachelor’s degree.
Private higher education institutions are also restricted in utilising tuition fee increases without approval from the Commission on Higher Education (CHED).
Governance
Higher Education in the Philippines is regulated by the Commission on Higher Education (CHED) , which was established under the Higher Education Act of 1994 (Republic Act No. 7722). The Technical Education and Skills Development Authority (TESDA) manages TVET. The Unified Student Financial Assistance System for Tertiary Education (UniFAST) Board is responsible for coordinating and implementing the financial assistance programmes under the act.
1. Education resources to subnational governments
There are roughly three types of public higher education institutions. State universities and colleges (SUCs), local universities and colleges (LUCs), and others. All of them are funded at the national level, directly from CHED.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Private universities and colleges may receive subsidies and/or other financial incentives or assistance from CHED.
Allocation and equity
Public higher education institutions are financed through a mix of primarily national or local budgets and tuition fees. The budget provided by state universities and colleges aims to cover personnel services, maintenance, and other operating expenses.
Since 2018, the government has been directly reimbursing the cost of tuition to SUCs.
3. Education resources to students
Admission for vulnerable groups
Institutions are encouraged to admit students with disabilities through the 2008 Manual of Regulations for Private Higher Education.
Scholarships, grants and loans for vulnerable groups
Republic Act No. 10931 on Universal Access to Quality Tertiary Education led to the creation of the Tertiary Education Subsidy (TES), which can be used by students to help them access private institutions, especially in areas that lack SUCs or LUCs. The TES covers tuition and related education expenses such as books, supplies, and technology. The Department of Social Welfare and Development (DSWD) assists in identifying eligible students, particularly those from low-income households. TES recipients in SUCs and LUCs receive up to PHP 40,000 per academic year. Those in private institutions receive up to PHP 60,000. PHP 20,000, which is expected to be used for tuition, while the remaining PHP 40,000 is meant to cover other educational costs. Students in programmes requiring professional licensure can receive a one-time grant of up to PHP 10,000 to cover costs related to obtaining the first professional credentials.
The act also introduced a student loan programme to help students cover expenses not included under free tuition or TES. The loans may be short term or long term.
The Tulong Dunong Grant, managed by CHED, provides PHP 15,000 per academic year for tuition and other educational expenses. Priority is given based on academic performance, family’s economic status, and membership in marginalized sectors such as gender, disability, and regional representation. Students in provinces without public higher education institutions are also prioritized. Additional funds help to provide support to students with disabilities.
The CHED Merit Scholarship Programme (CMSP) is a competitive scholarship initiative which aims to support academically talented students. Additional points in the ranking are given to students belonging to special equity groups such as those with disabilities, solo parents, indigenous people, underprivileged and homeless, first-generation college students, and the poor.
There are also scholarships for specific fields and for children of sugarcane farmers and coconut farmers.
4. Support for students’ living costs
DSWD provides financial assistance through the Assistance to Individuals in Crisis Situations (AICS) programme. The programme can provide scholarships or financial aid to students whose education is disrupted by a crisis such as natural disasters, personal hardships, or extreme poverty. For education, PHP 2,000 is provided to students per semester.
Transportation
The Tertiary Education Subsidy (TES) may be used for student transportation. It may also include an additional allowance for expenses related to a student’s disability, such as transportation.
Accommodation
The Tertiary Education Subsidy (TES) may include an allowance for room and board costs incurred by the student.
Textbooks
The Tertiary Education Subsidy (TES) may be used to purchase books and other school supplies.
