Passing the bills banning schools from implementing a “No Permit, No Exam” rule will force many private schools to close, thousands of teachers and school staffers to lose their jobs, and thousands of students to be disenfranchised.

The Coordinating Council of Private Education Associations (COCOPEA), the largest group of private schools, colleges, universities, and technical and vocational education and training institutions in the country, strongly opposed the passage of Senate Bill 1359 and House Bill 7584.

The said bills prohibit educational institutions from imposing a policy that will prevent students with unsettled financial obligations from taking examinations.

“These bills will impose prohibitive provisions that will seriously affect the timely collection of tuition and other financial obligations direly needed to support the thousands of teachers and personnel as well as other school dependent stakeholders of private educational institutions still struggling to recover from the long school closures caused by the pandemic,” said COCOPEA Spokesperson and Legal Counsel Kristine Carmina R. Manaog.

“We urge lawmakers to defer the bicameral committee deliberations and hear the private educational sector's voice,” she added.

The COCOPEA is the unifying voice of the private education sector in the Philippines.

It is composed of the Philippine Association of Colleges and Universities (PACU), Catholic Educational Association of the Philippines (CEAP), Association of Christian Schools, Colleges and Universities (ACSCU), Philippine Association of Private Schools, Colleges, and Universities (PAPSCU), and the Unified Technical and Vocational Education and Training of the Philippines Inc. (UniTVET Inc.).

Impact on operations

Manaog explained that private schools rely heavily on the timely payment of tuition and other school fees for its continued operations, including the payment of salaries of teachers and staffers, and school utilities.

“Since private schools rely heavily on steady cash flow for its continued operations, any prohibition that affects their ability to effectively collect fees for funding will disrupt cash flow that is used to sustain their operations,” Manaog said.

Without this, she noted that “many schools will be forced to close” which would result in the “disenfranchisement of thousands of students and cause extensive job losses.”
Sending the ‘wrong signal’

COCOPEA also pointed out that many private schools have been offering installment plans and deferred payment schemes to provide and ensure access for financially challenged students.

However, the group noted that private schools may also be constrained to remove these options if the bills get passed.

“Private schools extend compassion to students and parents through installment payments and flexible policies accommodating learners unable to pay due to emergencies and other reasons,” COCOPEA Chairperson Bernard Villamor said.

COCOPEA noted that existing policies such as DepEd Order 15 s. 2010 allow for such arrangements.

“Allowing students to take exams without settling dues would send the wrong signal about financial responsibility, disrupt cash flow, and harm school operations,” he added.

Prompt payment of fees ‘essential’ for survival

Villamor stressed that with the economic impact of the pandemic, prompt collection of fees is “critical” to private educational institutions to ensure the sustainability of their operations.

“Many private schools have yet to recover from the pandemic's economic effects and previous educational reforms,” he said. “To help them, there is a need for stricter policy implementation, not their removal,” he added.

Villamor also noted that “prompt payment and collection of fees are essential for private schools' survival” --- especially small and medium-sized ones in rural areas.

Room for abuse

The passage of the bill may be abused by some parents who are capable of settling their fees on time, COCOPEA warned.

“The bills prohibiting the No Permit, No Exam policy will effectively remove any compulsion to timely pay tuition and other fees, and in the absence of such compulsion, those who can otherwise pay on time will deliberately not pay or delay payment,” Manaog said.

“Meanwhile, private schools cannot ask for the deferment of their own obligations as they fall due, such as loan amortizations, payment of energy, water and other utilities, nor can it suspend payment of teacher and employee salaries and benefits,” she added.

Other solutions

Amid all these, COCOPEA expressed willingness to engage in a dialogue with lawmakers to develop solutions that ensure both the financial stability of institutions and the accessibility of education for all students.

“We can explore options such as expanding scholarship programs, establishing financial aid and student loan facilities, and fostering partnerships with the private sector to create employment opportunities for working students,” Villamor explained.

Villamor also encouraged the government to take a closer look at the private educational sector's crucial role in the country's education system.

“Strengthening support for private schools through appropriate legislation and policies will enable them to offer affordable and high-quality education and complement the public education system in addressing the increasing demand for educational services,” Villamor added.