Macroeconomics

Topics: High school, College, Education Pages: 38 (12967 words) Published: August 25, 2013
University of the Cordilleras

RISING TUITION AND MISCELLANOUS FEES
IN HIGHER EDUCATION

In partial fulfillment of the requirements in
Macroeconomics

By:
Achawon, Czarina
Bantiyaw, Jenny Lou
Gahid, Dariel
Morales, Jurileen
Nacis, Nemiah
Salvador, Chaste Heart
Santiago, Nikki
Tengay, Joseph

August 2013
CHAPTER I
Background of the Problem

During the past years tuition fee has been growing. And for this year, it was the largest increase having 354 private universities and colleges and 903 elementary and high school raising their tuition fee and other fees. However, this is the lowest percentage increase for the past ten (10) years as Patricia Licuanan, Commission on Higher Education (CHEd) Chair, said the average tuition hike per unit for school year 2013-2014 is P37.45 or 8.5 percent nationwide while P194.62 or 7.58 percent for other school fees nationwide. Many commentators have criticized these tuition increases. Colleges and universities are said to be too greedy and are charging what the traffic will bear, or colleges are claimed to conspire together to increase tuition.

The Republic Act of 1982 which has been regarded to guide Philippine Education doesn’t stop the schools in proposing tuition fee hikes. In its Section 42, it was stated that private universities and colleges have their discretion to determine reasonable additional fees. This was the reason for filing a petition by Youth Groups, Kabataan Partylist, Anakpawis Partylist, etc, claiming for reconsideration of stopping the tuition fee increase all over the country. According to data provided by the government there will be at least 20.7 million students from public elementary and secondary schools while 3.1 million from private schools to be affected. “Instead of regulating tuition and other school fees, CHEd allowed private educational institutions to raise fees despite opposition from students and parents, making the cost of education more expensive for many Filipino families,” said Anakpawis representative-elect Fernando Hicap in a news. He further said that “Parents are forced by these school administrations to bleed dry and shoulder the sky-high cost of tuition and other school fees.”

This phenomenon on educational institutions can be explained by increases in the cost of producing college education. Professors and other teachers are the principal input in colleges, so that the cost of these teachers is an important determinant of the cost of producing education. College teachers are well educated since they almost always have Masters Degrees, and at the better colleges and universities they are very likely to have PhDs or similar advanced degrees.

Colleges have to compete for highly educated persons against employers in both the private and public sectors. The greatly increased pay of faculty has substantially raised college costs, which in part have been passed on to students through higher tuition and other fees.

This analysis also explains why tuition has grown most rapidly. These schools tend to have faculties that are considered the most skilled and productive, and they invariably have PhDs or other advanced degrees. They too have passed through to students some of these much greater costs via much higher tuition.

The increased return to greater skill means that colleges have an incentive to increase the workload of students, and improve the quality of the education they provide. Higher quality education is more expensive, however, which further has increased the cost of providing education, and the tuition charged students. It can now be said that a higher tuition fee for a higher quality education.

The costs of going to college are claimed to now outweigh the benefits for many of the students who attend college. This is particularly the case, it is argued, for students who take out large student loans to finance their education.

What happened to the value of a college education during the past...

References: http://www.interaksyon.com/article/62723/354-schools-granted-tuition-increase-ched
http://www.philstar.com/headlines/2013/05/28/947197/tuition-other-fees-1257-schools
http://ablelawfirm.tripod.com/tuition.htm
http://eae.alberta.ca/media/219400/living%20literacy.pdf
http://www.indexmundi.com/philippines/literacy.html
http://country-facts.findthedata.org/q/111/2395/What-is-the-literacy-rate-in-Philippines-a-country-in-the-continent-of-Asia
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