Finance Secretary Benjamin Diokno suggests that the government's free tertiary education program should be reserved for deserving students to address the rising dropout rate and improve efficiency.
Diokno argues that offering free tuition to all students may be wasteful and inefficient, as not all students are fully committed to their studies.
The dropout and attrition rate of college students in the Philippines was approximately 34% between 2016 and 2022, based on data from the Commission on Higher Education.
The national government is allocating P18.8 billion in 2023 to fund the college education of all Filipino students studying at 116 state colleges and universities (SUCs) without any requirements to fulfill.
Diokno proposes that students should pass a nationwide exam to qualify for government subsidies for their four-year college education, giving them the option to choose between SUCs or accredited private universities.
Diokno's remarks on the UAQTE law (RA 10931) being "unsustainable" and "anti-poor" have drawn criticism from lawmakers.
Supporters of RA 10931 argue that it promotes equal access to higher education and reduces the financial burden on students from low-income backgrounds.
Critics, including Diokno, raise concerns about the sustainability of the program and its potential strain on government resources.
DOF: Free college education only for deserving students
Diokno: High dropout rates turn free tertiary tuition into a taxpayer's burden
At a glance
Given the strain on public funds caused by high dropout rates, the Department of Finance (DOF) suggested that the government's free tertiary education program be reserved for deserving students.
Finance Secretary Benjamin E. Diokno said that offering free tuition to all students in government-run universities and colleges may not be wise, as not all students are fully committed to their studies.
“The present regime is unwieldy, inefficient, and wasteful,” Diokno told reporters on Saturday, Sept. 2. “An indicator of wastefulness is the rising dropout rate.”
Between 2016 and 2022, college students had a dropout and attrition rate of about 34 percent, based on the Commission on Higher Education data.
For 2023, the national government is spending P18.8 billion to fund the college education of all Filipino students studying at 116 state colleges and universities (SUCs), with no requirements to fulfill.
“Government resources funded by taxpayers’ money, by nature, are finite,” Diokno pointed out.
The budget for the Universal Access to Quality Tertiary Education (UAQTE) Act will increase to P21.7 billion next year to subsidize some 3.14 million college students across the country.
The UAQTE law, also known as Republic Act (RA) 10931, was passed in 2017, making it mandatory for public higher education and government-run technical-vocational institutions to provide free quality tertiary education to Filipino students.
According to Diokno, the current UAQTE law, which faced opposition from former President Rodrigo R. Duterte's economic managers in 2017, is not financially sustainable.
‘Filtering process’ proposed
Diokno, a former member of the previous administration's economic team, now proposed that students must pass a nationwide exam in order to qualify for government subsidies for their four-year college education.
Under his proposal, if students successfully pass the test, they will have the freedom to either enroll in their assigned SUCs or select accredited private universities.
“As a government scholar, he is entitled to a certain amount of education voucher. He has the option to decline enrollment in an assigned SUC and instead choose to attend any government-accredited private university that accepts him,” Diokno said.
The finance chief recognized that there is an inconsistency in the quality of SUCs, with certain institutions demonstrating excellent performance, some meeting acceptable standards, and others facing difficulties in meeting the expected criteria.
“It is important to note that the voucher will be disbursed annually and will be contingent upon the satisfactory performance of the government scholar,” the DOF chief said.
Lawmakers criticized Diokno's remarks last week when he called the UAQTE law "unsustainable" and "anti-poor.”
Diokno argued that RA 10931 primarily benefits those who can afford a college education and strains government funds.
He clarified that his proposed reforms to the UAQTE law are intended to enhance its financial sustainability and ensure that it benefits the most deserving students.
Improve pre-tertiary education
However, Diokno said there is a need to improve the K to 12 Program to provide greater opportunities for financially disadvantaged Filipino families to pursue higher education.
Under the K-12 Program, students undergo a comprehensive 12-year educational journey, starting from Kindergarten and continuing through six years of primary education, four years of Junior High School, and concluding with two years of Senior High School.
“The poor have a better chance of entering college, and completing the same if they have a good foundation. That’s one of the goals of the K-12 program. That’s the key— excellent basic education. That should be our focus,” Diokno said.
“The other goal of the K-12 program is the prepare the student for gainful employment or higher education. Many are not interested in going to college; they just want better jobs,” he added.
As part of the ongoing revamp of the K-12 curriculum, the Department of Education created a task force in May to review the senior high school program, specifically examining the possibility of making the last two years of basic education optional.
“These set of proposals are not perfect, but they could immensely improve the allocation of scarce government resources,” Diokno concluded.