THE REDUCTION of the government’s tertiary education subsidy (TES) grant has limited students’ program choices and has disproportionately affected those in private higher education institutions (HEIs), according to a government-funded study.
Previously, the TES granted P30,000 to students in private HEIs and P20,000 to those in public HEIs. However, after the program’s expansion to accommodate more poor students, the cap was lowered to a uniform P10,000.
While the adjustment allowed more students from low-income households to benefit, it significantly affected those enrolled in private HEIs, according to the report by the Second Congressional Commission on Education (Edcom II).
“This change disadvantages students in private HEIs, as they must allocate the subsidy toward tuition fees, whereas students in public HEIs can use it as an allowance, given that their tuition and other school fees are already covered under the FHE program,” the Edcom II Year 2 report said.
In 2024, students in private schools — particularly those in areas without local or state universities — comprised the majority of TES grantees, totaling 390,510 learners or 65% of beneficiaries. These students did not necessarily belong to poor households.
Meanwhile, 160,032 students or 27% of the grantees were Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries, while the remaining 50,170 students or 8% of the total grantees were part of the “listahanan” database of poor households.
Lawmakers have raised concerns about the distribution of beneficiaries. In December, Sen. Loren Legarda proposed guaranteeing the automatic eligibility of senior high school graduates coming from 4Ps households.
According to Edcom II, the lower subsidy has also restricted students’ program choices, as only a handful of undergraduate programs in the Philippines have an average tuition projection below P10,000 per semester:
- Elementary Education (P9,955)
- Technology and Livelihood Education (P8,920)
- Criminology (P8,834)
- Industrial Technology (P7,866)
- Technical-Vocational Teacher Education (P6,702)
“Limiting the TES subsidy reduces the number of programs that students can afford, disproportionately disadvantages private institutions, and places the burden of living costs — such as books, dormitories, and other expenses — on students and their families,” the report read.
“This financial strain increases the likelihood of students dropping out before completing their education,” it continued.
Edcom II recommended adjusting the TES subsidy amount to “reflect current realities, including living expenses and tuition fees, especially in private HEIs.”
The TES program was established in 2017 under Republic Act 10931 or the Universal Access to Quality Tertiary Education Act. Ella Mae A. Sison
