Marcos signs law putting poorest students first in college subsidies

Students return to their respective schools as in-person classes in Marikina City resume on March 9, 2023.

Photo by Walter Bollozos / The Philippine Star

MANILA, Philippines — President Ferdinand Marcos Jr. signed a new law Friday, September 4, that gives the most economically disadvantaged college and vocational students first priority for government subsidies, after past data shows aid has increasingly gone to wealthier applicants instead. 

The new law, Republic Act 12325, introduces amendments to the Universal Access to Quality Tertiary Education Act (Republic Act 10931) that allocates more slots in financial assistance programs for college students from the poorest households. 

Specifically, it sets up a prioritization system for eligible students in the Commission on Higher Education's Tertiary Education Subsidy (TES), where students from households enrolled in the Pantawid Pamilyang Pilipino Program get the highest priority, while remaining slots go to applicants based on household income. 

The Second Congressional Commission on Education (EDCOM 2), which pushed for the amendments, previously found that the poorest households' share of TES grants fell from 74.24% in 2018 to 30.74% in 2022, even though the subsidy was meant to prioritize them.

"The amendments ensure that government assistance reaches those who need it most, particularly students from poor and disadvantaged families, including qualified 4Ps beneficiaries," Marcos said at the signing in Malacañang.

The law also creates a new program, Private Education Assistance, or PEA, to help poor students taking priority courses — but not covered by other grants — attend CHED-recognized private colleges and TESDA-registered technical schools.

Under the law, subsidy amounts given will now vary by degree program instead of a flat rate — currently P27,000 a year per semester for private colleges and P20,000 for public — which EDCOM 2 said had limited students to choosing from a narrow set of programs, including business administration, education and information technology. Students taking government-priority courses will get extra funding on top of that.

The subsidy will also cover internship and clinical training fees for nursing and other health-related programs, costs students previously had to pay themselves.

Marcos ordered the Commission on Higher Education, the Technical Education and Skills Development Authority, and the Unified Student Financial Assistance System for Tertiary Education to draft the law's implementing rules.

The law was authored by Reps. Roman Romulo (Pasig) and Jude Acidre (TINGOG party-list) and Sens. Bam Aquino, Joel Villanueva and Loren Legarda. It was on the executive's priority list for the 20th Congress. 

The TES is only one of four components of the original RA 10931, the law that was passed in 2017 that made tuition in government-run colleges and universities free.

Under TES, students enrolled in state universities and colleges receive additional financial assistance, such as allowances for books, instructional materials, transportation, board and lodging, and daily living expenses.

While tuition and mandatory fees are already covered under the law's free tuition provision, the TES provides allowance grants to financially needy students to offset the indirect costs of pursuing a degree.

The other two components of the law are the Free Technical-Vocational Education and Training, which waives training and assessment fees for state-run technical-vocational iinstitutes; and the Student Loan Program.