Private schools believe that their financial viability will be compromised under the passage of the "no permit, no exam" ban claiming that it is "tantamount to a death sentence" as it will force them to cut corners in their operations and cause systemic damage to the private education sector.

This was according to 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, as it urged lawmakers to reconsider the passage of the said policy.

In separate statements, the COCOPEA's member organizations slammed the congressional bills that seek to ban the policy asking lawmakers to listen to them as well.

It's composed of the Catholic Educational Association of the Philippines (CEAP), Philippine Association of Colleges and Universities (PACU), Association of Christian Schools, Colleges, and Universities (ACSCU), Philippine Association of Private Schools, College, and Universities (PAPSCU), Unified TVET of the Philippines Inc. (UniTVET) — as well as the Association of Private School Administrators — Division of the City of San Fernando, Pampanga (APSA), the Davao Association of Private Schools and Administrators (DAPRISA), the Federation of Associations of Private Schools and Administrators (FAPSA), and the National Alliance of Private Schools Philippines (NAPSPHIL).

"The effects of the proposed policy will be both immediate and long-term," the groups warned. It will cause systemic damage to the private education sector, violate the complementarity of the public and private education sectors, and lead to less accessible quality education in the country," the group said. 

COCOPEA said that Senate Bill 1359, which covers educational institutions, from elementary to tertiary and short-term vocational courses, is awaiting reconciliation with its counterparts House Bill 7584 which covers basic private institutions, and HB 6483 which covers higher education institutions both public and private. Deliberations at the bicameral conference committee are likely to take place soon.

COCOPEA alone has 3,622 educational and learning institutions among its member schools, colleges, and universities, covering more than 1.7 million students in both the basic education and higher education levels across the country.

'Destructive' effects

According to the group, the effects of the proposed law will be destructive, which urges the deferment of the bicameral sessions to allow for more consultations with all stakeholders.

The "No Permit, No Exam" policy prevents students who have not paid their tuition and other fees from taking major examinations. 

"On the surface, banning it could be seen as a compassionate move that protects the interests of the students," the group said.

"But private schools, unlike public schools whose operations are provided for by the government and enjoy substantial budget allocation among all line agencies, rely on payments by their students to finance their day-to-day activities," it added.

It also mentioned that banning the policy would disrupt fee collection, which jeopardizes operational sustainability, timely payment of salaries and wages of school personnel, and school viability. It added that it would also lead to the downsizing of operations, trigger closures, lead to the unemployment of personnel, and increase pressure on a strained public school system.

The schools cited Department of Education Order 15 s. 2010 which provides a mechanism to help lighten the burden of students' families, by allowing schools to offer installment plans and accept deferred payments. This is already being implemented by private schools.

"The proposed bill discourages current practices of offering flexible payment options and leaves private schools with limited alternatives that may lead to conflicts between the private education sector and its stakeholders," the group said.

Adjusting to the pandemic

During the pandemic, the schools pointed out that while it has given them serious blows with the drop in enrollments, they have stayed true to the commitment to deliver the best education to their students.

"Private schools have always adjusted in order to make private education accessible, especially during the pandemic. Private schools have been offering low downpayment and monthly payment schemes, extending payment deadlines and accepting promissory notes, giving discounts, and expanding scholarship opportunities," COCOPEA said.

On the other hand, it mentioned that the proposal violates the complementarity between the public and private education sectors. "It increases the imbalance between public and private education sectors by further restricting the private education sector in their ability to determine their operations and finances, while the public sector enjoys increasing budgetary provisions under the Universal Access to Quality Education Act and other laws."

Nonetheless, the schools said they were ready to "engage in productive dialogue towards crafting the most responsive policy for the growth and sustainability of Philippine education."