Director: Daniel C. Levy

Philippine Governmental Control on Private Higher Education's Fees

PROPHE Summary (by Prachayani Praphamontripong):

The Philippine Commission on Higher Education has circulated a memorandum order to all private higher education institutions, limiting tuition fee increases to 8.5 percent, reflecting the inflation rate. Institutions not complying with the memorandum risk such consequences as permit revocation, status downgrade, and other penalties. Grievances and comments regarding tuition fee increases will be addressed at the Regional Task Forces.

PROPHE Observation (by Daniel C. Levy):

Tuition levels are a common point of contention between government and private higher education. Depending upon one's viewpoint, government either protects citizens or curries political favor by holding down fees or at least increases. In contrast, private institutions emphasize their rights and needs to run financially viable operations, including to have the money to insure quality (which is itself a common focus of complaints against them). The institutions assert that if citizens are willing to pay, then the fees are market justified. In the Philippine case, government wants evidence that higher fees have led to higher quality (implying that otherwise they lead to either profits or inefficiency). The present struggle is especially important since the Philippine private sector holds roughly three-fourths of total enrollment.