Education financing and loan system in Phillipine (06)

Lessons learned from the Indian Higher Education System

At present,  India  has  about  304  universities,  including  62  Deemed  Universities , 11  open universities,  and  15,000  colleges,  incorporating  approximately  10  million
students, education degrees, online degrees, online masters degree, online colleges, online university  and  0.5 million teachers. This makes it the second largest higher education system in the world. The overall expansion over a period of time has been appreciable, with student enrolment growing at 5 percent annually over the past two decades. In spite of all this increase in enrolment, only 7.2 percent of the population in age group 17 to 23 constitute the participating group.

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Education financing and loan system in Phillipine (05)

Quality
The performance of higher education institutions, education degrees, online degrees, online masters degree, online colleges, online university is a growing concern. The pressure for quality assurance poses a major challenge for Philippine higher education, education degrees, online degrees, online masters degree, online colleges, online university as in the case of many developing countries including India. The problem of quality becomes specially pressing in higher education, education degrees, online degrees, online masters degree, online colleges, online university  where the government has allowed the private sector to dominate; thus, the government finds itself in the paradoxical position of trying to set up and enforce standards in an area which it is unwilling to enter (Lopez, 1977).

Available literature on the quality of higher education, education degrees, online degrees, online masters degree, online colleges, online university  in the Philippines have dealt with issues ranging from  professional examination results to internal aspects of inputs i.e. accreditation, student intake, student loan, basic infrastructure, qualifications of teaching faculty, education loan etc.

Accreditation is voluntary in the Philippines and has a positive effect on the quality of higher education, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university in terms of its effectiveness in stimulating institutional improvement. The accreditation is more focused on the programs and not on the institution as whole. There are three different agencies doing accreditation for private institutions like online colleges, online university. If we analyse the number of accredited institutions in terms of the number of private institutions, education degrees, online degrees, online masters degree, online colleges, online university and the number of programs being offered by these private institutions, the situation cannot be thought as appreciable. One of the widely accepted measures of quality in the Philippines has been the performance of individuals in   the   professional  board  examinations  (PBE)  conducted  by  the  Professional Regulation Commission (PRC). The annual national average passing rate in the PBE from 1995 until 2003 has been between 41 to 49 percent. Another striking feature is the extreme variation in the results across programs.

Although the University of the Philippines-Diliman tops the list of high performing institutions, there are many more high performing private  institutions14  than government owned institutions, education degrees, online degrees, online masters degree, online colleges, online university (Asuzano and Thomsan, 2001). But the private  non-sectarian institutions like education degrees, online degrees, online masters degree, online colleges, online university show the poorest results in the professional board examinations.

The inputs are also an important indicator of quality and these include student intake, faculty qualification and  instructional facilities including library holdings. The type of student intake also determines the output of the quality. The best students prefer to go to the most selective and reputed private institutions and public institutions (especially the UP system). The non-sectarian schools are more open, admit more students and charge relatively  less tuition than the other prestigious private institutions - leading to a trade off between the quality and student flows. The data on faculty educational qualification reveal that there is much disparity among the faculty across regions. The faculty in Metro Manila institutions hold higher degrees, education degrees, online degrees, online masters degree, online colleges, online university degrees. The low salaries and higher workload in majority of the private institutions do not make it attractive for them to acquire advanced  degrees  and  to  engage  in  research.  In spite of  this  many  reputed  private sectarian institutions and a few non-sectarian ones are moving towards substantial improvement in faculty qualifications.

Education financing and loan system in Phillipine (04)

Equity 

There is ample evidence that some groups in developing countries have better access to higher education, education degrees, online degrees, online masters degree, online colleges, online university than others, but the factors determining access vary across countries or within regions of a country. In case of the Philippines, one can find considerable differences in higher education, education degrees, online degrees, online masters degree, online colleges, online university participation of individuals depending on economic background, sex, and urban and rural areas. The economic background has been a major factor influencing access and it is necessary to understand the economic aspects in considering the equity issue.

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Education financing of education loan system in Phillipine (03)

Education degrees and loan in Philippines

Today majority of the governments in developing countries are under great pressure to restrain public spending on higher education, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university. The structural adjustment programs favored by the IMF and World Bank emphasize reduction in public expenditure, largely because of budget deficits and external debts. It is this state of affairs that has prompted many countries to search for alternative sources other than the public treasury. In the context of higher education, education degrees, online degrees, online masters degree, online colleges, online university degrees advocacy of private  financing  has  become  increasingly  common,  while  the  measures  for  effective  cost recovery and private investment too have emerged as an accepted tool. But there are already a few selected developing countries where the role of private sector financing in higher education, education degrees, online degrees, online masters degree, online colleges, online university, education loan, student loan has been strong for decades. One of them and foremost among these is the Philippines where private higher education like education degrees, online degrees, online masters degree, online colleges, online university has been an important and accepted part of national policy since pre- independence.Higher education, education degrees, online college degrees, online masters degrees, online university degrees in the Philippines is distinctive in many aspects, and among all its features, the role of the private sector of education is the most interesting to know. The Philippine university, online university, online collge degrees system has been modelled after that of  the United States’ model, despite the country’s vastly different cultural, political and economic realities (Smolicz, 2002).Among  its  other  features,  the  Philippines  continues  to  have  one  of  the  shortest  pre-entry systems1   in the  world, resulting in younger and less educated students in the system when compared to other countries in Asia. The transition rate between secondary and higher education is  about  90  percent,  which  is  exceptionally  high,  owing  to  the  strong  demand  for  higher education among parents for their children. The gross enrolment ratio/participation in education ratio is about 23percet.Higher education in the Philippines is also overwhelmingly private that it is conventionally discussed in terms of more meaningful subdivisions: proprietary, sectarian, and non-profit2  The present study of Philippine privately financed and managed higher education, education degrees, online degrees, online masters degree, online colleges, online university tries to look at the prominent features of Philippine private higher education, education degrees, online degrees, online masters degree, online colleges, online university through its history, and to examine the issues of equity, efficiency and quality in order to bring out some policy implications for the emerging private higher education, education degrees, online degrees, online masters degree, online colleges, online university system in India.

Private Institutions and Their Characteristics 

The private higher education, online college degrees, online universities, online masters degrees, education degrees sector of the Philippines is proportionally larger than that of any major country. Nearly 88 percent of the institutions are privately owned and managed without subsidies from the government,  and 67 percent of all students are enrolled in private higher education, online colleges degrees, online university degrees, online ,masters degrees, education degrees  institutions. The enrolment in various programs clearly reflects that higher education in  the  Philippines  is  determined  largely  by  market  forces  and  the  dominant  private  higher education, education degrees, online colleges, online university, online masters degrees institutions are there in response to student demand for different  programs (Tan,1995).The trend,  however,  shows  a  decline  in  the  share  of  private  education  in  terms  of  total enrolments, as the public sector has grown. The number of private higher education, online colleges, online universities, education degrees, online masters degrees institutions has increased at an average annual rate of about 3 percent since 1995.One of the most basic features of mass private higher education in the Philippines from its period of development till the present is an extreme reliance upon tuition revenues, even though they depend predominantly upon a student client that is by no means healthy. Dependence on revenues from tuition and other fees ranges from a high of 97 percent to 82 percent. The income from other private sources does not contribute significantly to total income. Personal services including salaries and wages are the largest component of recurring costs, and it ranges from 41 to 84 percent across various institutions. The maintenance and operating costs (inclusive of general and administrative overhead expenses) range between 11 to 46 percent.The private institutions are concentrated and dispersed. There are large clusters of private institutions in the cities, this means they are still founded on commercial bases (Balmores, 1990). This has led to pronounced  concentration of private institutions in urban areas such as Metro Manila, Central Luzon, Southern Tagalog and Western Visayas .The remarkable access to higher education, education degrees, online masters degree, online colleges degrees, nevertheless has its negative aspects. The private institutions also have a wide diversity of standards of education, from the highest to the lowest. While  only selected  private  institutions  are  comparable  to the  best  of the  state  institutions (University of Philippines), the bulk of the additional student places are of inferior quality.

History of Private Higher Education in the Philippines
The historical origin of higher education, online degrees, online college degrees, online university degrees, education degrees in the Philippines can be traced in its proper form to the Spanish regime. The educational policies, educational loans, student loan initiated by the Spanish kings were carried out by the religious orders that came to the Philippines. Higher education, online college degrees, online masters degrees, online education degrees, education degrees during the Spanish regime was represented by the University of Santo Tomas  (UST) and for over two centuries the UST remained the source of manpower training (Bazaco, 1939).With the inception of the American regime (1898-1946) a radically different school system was set up. The Americans transplanted their own kind of education system in the Philippines (its new Asian colony) because of their non-familiarity with Philippine socio-economic and cultural problems. American history, geography and literature became major curricular offerings. On the one hand, the government was evolving the public school system, and on the other hand Filipino leaders and educators3  realized the need to establish private institutions in order to provide an education distinctively Filipino in orientation.The lifting of clerical control over education at a time when the educational horizons of Filipinos were rapidly widening led to diverse public initiatives in founding institutions. Almost all of these  ventures  began  as  elementary  or  secondary  education schools  and  subsequently  developed  into colleges  or  universities, online universities, online colleges, online masters dgrees, education degrees.  Along  with  the public  institutions  set  up  by  Americans,  private individuals, with an objective to preserve the Filipino culture, established many private Filipino centres of learning4 (Hayden, 1942). With the approval of the constitution of the commonwealth in 1935, a more clear-cut policy concerning the relations between the government and the private schools and colleges came about. The constitution specifically provided that all educational institutions like education degrees, online degrees, online masters degree, online colleges, online university should be subject to regulation and supervision by the state.  The Office of Private Education, headed by a Director, was established.In 1941, with the outbreak of the World War II and for more than three years of the Japanese occupation of the country, there was no attempt by the Japanese government to foster the growth of educational institutions, education degrees, online degrees, online masters degree, online colleges, online university. Instead, they wrecked the towns and cities, including educational establishments. They stampeded into schools, colleges and universities as soon as hostilities ended on September 2, 1945 (Isidro and Ramos, 1973).Thus, both physically and morally, the nation was prostrate after the Japanese regime. To rebuild the economy and  restore educational institutions, Filipinos sought and received United States assistance. The contribution of  Filipino private educators also began establishing new private universities and colleges5 .The simultaneous features in the post independence period i.e., increased private demand for higher education, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university and scarce resources of the government, led to the self momentum of the higher education, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university sector towards the private sector. The economic reconstruction remained the priority of the state; the state hardly considered the education sector as a part of its new order. Inevitably,higher education, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university  fell into the hands of the private sector and it began taking shape with private resources.

Education financing of education and loan system in Phillipine (02)

In terms of limits on tuition fees in private institutions,  in February 2007, the CHED scrapped CMO 14, which had placed a cap on tuition hikes in private institutions like online degrees, online masters degree, online colleges, online university  and prohibited private institutions from tuition fee increases higher than the prevailing national inflation rate,  and re-implemented CMO 13, which merely requires private institutions to hold consultations before imposing tuition fee increases.

The  University of the Philippines implemented the Social Tuition Fee Assistance Program (STFAP) in 1989 in order to democratize undergraduate student admission and benefit low-income and disadvantaged students. The STFAP was mandated by the President and Congress of Philippines through General Appropriations Acts of 1989, 1990, 1991, and 1992. The program was revised in December 2006. Under the STFAP, students from higher income families pay higher fees and students from the lowest income families are eligible for free tuition plus a living allowance, education loan, student loans, education degrees. It also includes scholarships, education loans, student loans for living subsidies based on need and merit and student work study opportunities.

In 2006, the University of the Philippines increased undergraduate tuition fees for the first time in more than 15 years from P300 per unit to P1000 per unit  (for those in the highest income bracket) for new students in the 2007-08 academic year. It also approved annual education degrees, online degrees, online masters degree, online colleges, online university tuition increased based on the country’s national inflation rate. However, in May 2008, in the face of rapidly increasing oil and food prices,  the  Philippines  President placed a moratorium on tuition fee, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university  increases in the 110 state university and colleges. She also called on private institutions like education degrees, online degrees, online masters degree, online colleges, online university  to freeze plans for tuition fee increases. 

The Philippine government, universities, individuals, organizations, corporations, online masters degree, online colleges, online university  provide scholarship programs to students from low-income families. According to 2006 CHED data, CHED provided financial assistance to 41,712 students (broken down as 15,190 students in the scholarship program, 25,733 in the grant in aid program and 789 in the student  loan or education program).  In 2005, new procedures for administering the CHED scholarships, loans and grants in aid programs were approved (excluding the  study now pay later student loan or education loans program), which outlined the slot allocation process, the fund allocation process, the respective management roles of the CHED offices  and participating higher education institutions. 

Among other scholarship program, the CHED administers the State Scholarship Program (SSP) for needy meritorious students, the National Integration Study Grant Program (NISGP) for needy members of cultural minority groups, and the Private Education Student Financial Assistance (PESFA) Program, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university for needy students entering private universities. 

The CHED also offers student loans through the “Study Now Pay Later Plan (SNPLP)”. Started in 1976, SNPLP is the oldest system-wide means-tested student loan scheme. The loans, which cover tuition and means tested allowances, were  originally  funded and operated by  five  Government Financing Institutions (GFIs).  By 1992, the GFIs disengaged from the program and the loans were administered and allocated first by the DECS, and then by CHED using funds from the Government Assistance to Teachers and Students in Private Education fund and the Poverty Alleviation Fund and students in private institutions became eligible for loans, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university. CHED allocates the SNPLP slots equitably among regions and the total number of slots are determined by the budget allocation; however the total number of students availing of the loan, education degrees, student loan has been quite limited.

The repayment rate of SNPLP dropped from  41 per cent in the 1970s-1980s, to 3 percent, in the process of GFIS’ disengagement in 1988-1992, to only 1.9 percent in 2003 (Kiaev et. Al 2003). Reasons for the low repayment rate included lack of information on Where abouts of defaulters;  unemployment or low income of defaulters;  absence of legislation compelling loan guarantors  to pay off  the “bad” loans of defaulters;  lack of capacities to track and prosecute defaulters by both implementing and funding agencies; absence of data bank on SNPLP;  absence of a specialized unit in charge of loan collection; and fast turnover of personnel in charge of SNPLP without proper delegation of responsibilities (Kitaev et al 2003).

  

In 2007 new legislation was passed  to  reform  the student loan, education loan, student loans, education degrees, online degrees, online masters degree, online colleges, online university  system. The Study-Now-Pay-Later Fund was created along with  a body to administer it, the Educational Loan Fund Authority under the CHED. The legislation also revised the terms of the loan and set the maximum annual loan amount to be equivalent to the prevailing cost per academic unit at the University of the Philippines multiplied by fifty academic units at an interest rate ranging between 5 and 10 percent as determined by the Educational Loan Fund Board (governing body of the Authority). Repayment begins five years after graduation and must be paid in five equal annual amortizations starting from the data the first loan, education loan, student loan payment becomes due.

The government has created additional student loan programs as well.  In 2006, the government created the PGMA Higher Education loan program for needy 3rd and 4th year students in private higher education institutions via partnerships between the CHED and the individual private institutions. As part of the program the participating higher education institution, education degrees, online degrees, online masters degree, online colleges, online university  agrees to establish a Student Financial Assistance Unit to administer the program. The loans, which carry an interest rate of 6 percent (compounded from loan disbursement), are only for tuition fees and the maximum amounts are determined by the individual higher education institutions.

In 1999, a regional scheme in the Bicol Region (or Region V), one of the most deprived regions in the Philippines, was introduced to  increase access to higher education by providing loans to deserving students.  Qualified students may borrow a maximum amount of P7,250.00 per semester or P14,500.00 per year to cover tuition, other school fees and allowances.  Interest on the loan  is six per cent (6%) per year and commences upon release of the loan. Repayment begins  two years after graduation and  is amortized within a period of  ten years. The participating higher education institutions, education degrees, online degrees, online masters degree, online colleges, online university  where the student is enrolled in shall take charge of collecting the repayment of loans which shall also be used to continue and expand the program.

In 2000, the CHED created the Student Loan Program (SLP) for Centers of Excellence in priory courses aimed at poor but deserving students enrolled in the selected universities that have been designated Centers of Excellence in priority courses. Loans of P10, 000 cover tuition and other school fees. Similar to the Bicol Region loan, the SLP scheme differs from the SNPLP in  that it involves the institutions concerned directly in administering the scheme, under the supervision of the Office of Student Service of CHED. Because of extra administrative burden and without any motivations or incentives, certain institutions like online colleges, online universities, online masters degrees, online degrees, education degree institutions refused to participate in this scheme.

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Higher Education Finance and Cost-Sharing in the Philippines (01)   

                                                  

Brief Description of the Philippines’ Higher Education System

   
The Philippines is  considered to be  one of the most highly educated  middle-income countries.  It has high enrollment rates at all levels of education and it has achieved near universal access to primary education (World Bank website 2008). The first baccalaureate degree granting institution, the University of the Philippines, was created by an act of the Philippine Legislature in 1908 along European lines.  

Since the creation of the Commission on Higher Education (CHED) and the Technical Education and Skills Development Authority (TESDA) in 1994, the Department of Education, Culture and Sport  (DECS)  has concentrated on elementary and secondary education. The CHED, a department-level agency, independent from the DECS, governs the public and private higher education system (two-year colleges, four-year, and comprehensive/technical universities) and oversees degree-granting programs in all post-secondary educational institutions. The TESDA, an agency attached to the Department of Labor, oversees the post-secondary technical education and vocational education. 

In  2008, the Philippines had  2,060  higher education institutions including  110 state universities and colleges (SUC) main campuses, 334 satellite campuses, 77 local universities and colleges, 10 other government schools, 1 CHED supervised institution, 5 special higher education institutions,35 recognized private higher education institutions and online masters degree institution, online colleges, online degrees institution,  education degrees institution, online university. The state universities and colleges (SUCs) are funded by the national government.  In April of 2008, the UP Charter  of 2008, Republic Act No. 9500  was passed,  which provides institutional and fiscal autonomy to the University of the Philippines  and designates it the national university. CHED-supervised Institutions are directly supervised by the CHED, and their annual budget allocation is integrated in the government budget appropriation for the CHED. Local universities/colleges, online colleges, online university are operated, supported and maintained by local government units. Other government schools of education such as military and police academies offer degrees, education degrees and  advanced training programs  are supervised and regulated by the Department of National Defense and Philippine National Police. 

There is  growing pressure for expansion of  the already overcrowded  higher education system in the country. Universal primary education was achieved in the second half of the 1990s, and the net secondary enrolment has reached 76 percent in 2001 and 81 percent in 2007/08 (Ministry of Education statistics). In 2004-05, there were 2,402,315 higher education students in the Philippines with 819,251 in public institutions and 1,583,064 in private institutions. The enrollment ratio of higher education  students was 29 percent in 2008.  

Each higher education institution adopts a certain admission policy beyond the general requirement that all candidates have to be graduates of secondary education. Some institutions require passing an entrance exam and a medical examination; others adopt open admission for online colleges, online university ,  but selective retention. Like other Asian countries, the Philippines has relied on private institutions, online colleges, online university  to increase higher education opportunities and, at the turn of the century, had a higher proportion of its students in private higher education than any other country. In  2005, private higher education institutions, online colleges, online university  enrolled  more than 65 percent  of all higher education students. 

Significant disparities exist between and within the public and private higher-education institutions, and there are major differences in unit costs per student, tuition fees charged and government subsidies. (Kitaev et al, 2003). With higher unit cost and lower performance than private institutions, public institutions, education loan, student loans,online masters degree, online degrees,  education degrees,online colleges, online university  have been criticized for  their inefficiency and lack of accountability.

In addition to tuition and fees, private institutions like online colleges, online university are also funded from capital investments, contributions, and other income sources in accordance with government legislation.  While they are fairly autonomous, they have to apply for permission from the CHED to open new courses and for authorization to graduate their students for online masters degree, online degrees,  education degrees,online colleges, online university.

 
Public expenditure on education as a percent of GDP was 2.5 percent in 2005  in the Philippines  among the lowest budget allocations  for countries in the Association of Southeast Asian Nations (for example, public expenditures on education as a percentage of GDP was  4.2 percent in Thailand and 5.9 percent in Malaysia).  In 2005, public expenditure on education as a percentage of total government expenditure  was 15.2 percent and  educational expenditure on tertiary education  as a percentage of total education expenditure was 13.3 percent. In 2007, the education budget allocation grew to P150 billion from P129 billion in 2006. 

Most Filipinos regard education as a primary avenue for upward social and economic mobility. Middle-class parents make many sacrifices to provide secondary and higher education for their children. Moreover, many of them seem to equate high quality education with high tuition fees. Tuition fees of private universities, online masters degree, online degrees, education degrees,online colleges, online university in Metro Manila are much higher than those of public universities. The annual tuition fees of these private universities, are nearly half the average income of Filipino families.