Private schools reiterated the dangers of prohibiting “No Permit, No Exam” policies as this may cause many private schools to close down.

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In an open letter, the largest private school groups in the Philippines warned that banning “No Permit, No Exam” (NPNE) policies will “endanger” their sustainability.

“Schools will not have a steady cash flow, because the incentive to pay on time is removed, and parents and students will have the option to delay payment,” the groups said as they appealed to legislators to reconsider the passage of Senate Bill 1359 or the No Permit, No Exam (NPNE) Prohibition Act which was approved on third reading in March.

Citing results of simulations, the groups said private schools will “run out of operating cash after just over two months” after which they will need to find other sources of financing such as loans or delay payment of operational expenses like salaries, among others.

The open letter, signed by the Catholic Educational Association of the Philippines (CEAP), Philippine Association of Colleges and Universities (PACU), Philippine Association of Private Schools, Colleges, and Universities (PAPSCU), Association of Christian Schools, Colleges, and Universities (ACSCU), and Unified TVET of the Philippines, Inc (UniTVET), private schools said that an NPNE prohibition will “adversely affect the schools’ viability, ultimately leading to reductions in investments, scaled-back operations, or closure.”

These, the groups added, would result in “unemployment for teachers and staff. Displaced students will add to an already overburdened public education system.”

Despite the NPNE policies, private schools also pointed out that they are already “extending” accommodations to students who cannot pay their tuition fees on time.

“Schools allow enrollment upon payment of a small fraction of the tuition fees, with the rest to be paid on an installment basis,” the groups said.

Promissory notes, the groups explained, allow students to take exams if they cannot yet afford to pay.

These systems, which have been in place for decades, provide a “fair balance between ensuring the students’ education and keeping the school afloat,” the groups said.

NPNE prohibition to ‘kill’ private schools

University of Mindanao (UM), the biggest private school in Mindanao, also expressed opposition to the passage of SB 1359.

In a separate statement, UM Chairman Dr. Guillermo Torres Jr. said that the measure has “far-reaching consequences” on the finances of private schools.

“If taxes are the lifeblood of the government, tuition fees are the lifeblood of private schools,” Torres said. “If private schools will be deprived of their ability to collect, they will slowly die,” he added.

The Cebu Institute of Technology (CIT) University also shared the strong opposition to NPNE Prohibition Bill.

In a statement, CIT University explained that the said measure is going to be “deadly” for them and other private schools that are still struggling from the effects of the Covid-19 pandemic and Typhoon Odette which hit the region in late 2021.

CIT University said facing another threat of government regulation of NPNE ban is “deadly” for private schools --- especially at this period when they need more funds for campus rehabilitation and physical facilities and bolstering of its online capability for the post-Covid learning approaches.

The NPNE prohibition, CIT said, can also be “destructive” to the private sector that contributes significantly to the economy and social well-being of the country.

“It would be a national tragedy if well-meaning and purposive schools, faithful to their vision and mission, would wither in the vine if the time-honored 'State's Partner' Policy were abandoned,” the CIT University added.