To: Bureau Directors
Regional Directors
Schools Superintendents
Heads of Private Schools, Colleges and Universities

After several public hearings on the tuition fee issue conducted by the Senate Committee on Education and Culture participated in by the different concerned sectors of the educational community and in consideration of the public welfare and in recognition of the need for viability and quality in private education in its complementary role in Philippine education; these guidelines, consistent with Section 42 of the Education Act of 1982, are hereby issued until Congress shall have passed new legislations:

1. Rates of Tuition and Other Fees: The tuition and other school fee increases shall not exceed the limit of fifteen per cent (15%) over the approved rates of the last preceding school year (as determined by COCOPEA representing associations of private educational institutions). In certain meritorious cases, a private school, college, or university may increase its tuition and other school fees beyond the fifteen per cent (15%) limit subject to review by the Department of Education, Culture and Sports (DECS). For SY 1988-89, the floor level of tuition and other fees is raised from P900.00 to P1000 per school year for elementary and high schools, and from P40.00 to P50.00 per semestral unit for college or university.
2. Manner of Collection: Any determination of tuition and other fees by any private school, college or university within the limit of fifteen per cent (15%) shall be collectible upon enrolment; provided such increases beyond the limit set forth herein shall be collectible only after review by the DECS. In cases where collection beyond the limit has been effected the same shall be held in escrow pending DECS review.
3. Conditions for Collection and Use: In any case of increase in the rates of tuition and other school fees, in a particular school year/semester/trimester, at least sixty per cent (60%) of the incremental increase of the tuition fees shall be allocated for increases in or provisions for salaries or wages, merit increases, salary adjustments, and fringe benefits of all its school personnel, including accruals to the 13th month pay, social security, medicate and retirement contributions, as provided by law, collective bargaining agreements, or voluntary employer practices.
   Provided, any collection of miscellaneous fees (like library, medical, dental, etc.) shall be used exclusively for the purpose for which these fees are collected.
   Provided further, each school shall have a program of tuition discounts and scholarships (at least 1 scholarship for every 500 students).
4. Compliance to RA 6640: All schools, colleges or universities shall undertake appropriate arrangements to comply with the mandated increases prescribed by Republic Act No. 6640 retroactive to 14 December 1987 and if a school has increased its tuition fees the amounts paid out for compliance thereof are deemed allowable charges against the incremental increase of SY 1988-89.
5. Documentation Requirements: The following documents shall be submitted by private schools, colleges and universities increasing their tuition and other school fees, except those whose tuition fees have been raised only up to the floor levels, on or before 30 June 1988 to the DECS Regional Office and another copy mailed to the DECS Central Office Tuition Fees Monitoring Unit, to wit:
   1. For any school, college or university which has increased its tuition and other school fees WITHIN THE LIMIT OF FIFTEEN PERCENT (15%).
      (1) Letter of Advice from the school head of the adopted increase in tuition and other fees, accompanied by:
      1. a copy and proof of posting in the bulletin board of the resolution of the Board of Trustees adopting the new rates in tuition and other fees;
      2. comparative Schedules of School Fees for SY 1987-88 and SY 1988-89, indicating both percentage and amount of increase;
      3. a schedule of Allocation of the Incremental Proceeds indicating the specific purposes and amounts;
      4. a report on the amount of the allocation and manner of disbursement of the incremental proceeds of the last school year’s increases.
   2. For any increase of tuition and other school fees BEYOND THE LIMIT OF FIFTEEN PER CENT, (15%) the following additional documents;
      5. a detailed justification of the additional increase being applied for including pertinent supportive documents.
      6. documentary evidence of consultation with parents at the elementary and secondary levels, and with students at the tertiary levels.
6. Resolution of Issues: Any protest, disagreement or dispute in connection with school fee increases shall first be resolved by the school head before the same may be brought to and be recognizable by any appropriate administrative or judicial agency.
7. Effectivity of Increase: All increases in tuition and other fees shall be effective upon the opening of classes for the school year, semester or trimester of SY 1988-89 unless a later effectivity date is indicated in the letter of advice.
8. Repealing Clause: Any order, memorandum, circular or rules and regulations inconsistent herewith shall be deemed repealed or amended accordingly.
9. Effectivity: This Order shall take effect upon its approval.

APPROVED. June 3, 1988

(SGD.) LOURDES R. QUISUMBING
Secretary

Reference: DECS Order: No. 37, s. 1987
Allotment: 1-4–(M.O. 1-87)

To be indicated in the Perpetual Index under the following subjects:
AMENDMENT
AUTHORITY
CHANGE
FEES

DO_s1988_46