Seeking to find more ways for underprivileged Filipino students to afford college education, the House Committee on Higher and Technical Education on Monday, Nov. 14, approved a measure that would require the government to issue educational bonds to benefit underprivileged Filipino college students.
Albay 2nd District Rep. Joey Salceda filed House Bill (HB) No. 638, or the “Educational Bond for Tertiary Education Act,” which would mandate government-issued educational bonds through the Bureau of Treasury (BoT) and the Department of Finance (DOF).
The bonds would be “in the name of every Filipino at birth which gives him or her the inchoate right to the proceeds of said security instrument upon maturity,” the bill’s explanatory note said.
During the deliberations chaired by Baguio City Lone District Rep. Mark Go, Salceda called on the House panel for the bill’s approval, citing the success of a similar program in Canada.
“May I appeal to the committee for a immediate approval so that it can be discussed in the floor?” the veteran lawmaker asked.
“At least we will open that there are enough options and financial flexibilities available to the state in order to expand opportunities of education,” he added.
According to the bill, the number of educational bonds for issuance shall be based on the yearly average birth rate as officially declared by the Philippine Statistics Authority (PSA).
The bonds would have a face value of P25,000 with a maturity period of 18 years and with fixed interest rate.
The intended beneficiaries of the program are underprivileged students 18 years of age.
It specifies that at the time of the maturity date of the bond, the beneficiaries must be 18 years old and must be enrolled in a post-secondary nondegree certificate or diploma course in a public or private technical-vocational institution or in an undergraduate degree program in any state university or college, local university or college or private higher education institution.
The beneficiaries should also be part of the household included in the poverty data under Republic Act No. 11315, or the "Community-Based Monitoring System Act", “or any other law establishing a monitoring and targeting system for poor households that may be enacted in the future.”
Go, however, questioned the practicality of where the National Treasury can get the funds.
“If you look at our debts, our borrowings, certain percent are actually bonds floated in the market and we are paying a big interest,” he said.
But Salceda argued that “bonds issued by the government accrue to itself.”
“If we don’t do it, do you want more poor people that will bring more poor people or do you want to cut the umbilical cord in poverty and lack of educational opportunity?,” he asked.
Go maintained that his concern roots from the Philippines’ deficit budget because of its borrowing. Salceda refuted that the country won’t need to release money until the 18th year.
Quezon 2nd District Rep. David Suarez expressed concern that the funds won’t be enough to cover books, lodging, and other miscellaneous items.
Calling Salceda “one of the champions of free higher education,” Commission on Higher Education (CHED) chairperson Popoy de Vera expressed support for his proposal “to stop inter-generational poverty in higher education.”
However, he agreed that there are “several areas that need to be fleshed out particularly on the computation of how much higher education will cost 18 years from now because the escalation of cost in higher education is quite rapid in the case of the Philippines.”