Metro Manila (CNN Philippines, May 18) — Private schools will “run out of operating cash” in less than two months if the bill prohibiting the “no permit, no exam” policy is enacted, the Coordinating Council of Private Educational Associations (COCOPEA) said Wednesday.
\”In the absence of lack of effective means to collect, or any compulsion to ensure prompt payment, we fear that the viability of private educational institutions will be endangered, which in turn will disrupt access to education,\” COCOPEA chairperson Bernard Villamor said in a statement.
He said a recent study conducted by the Philippine Association of Colleges and Universities (PACU) and participated by 27 private colleges and universities showed that their financial capacity would \”significantly weaken\” and the collection of fees would only be able to cover two months’ worth of operating expenses on average if the policy is prohibited.
Villamor also noted that educational institutions that are already at a loss or at a breakeven point will be the most financially at-risk schools if the policy is prohibited.
\”In as much as taxes are the lifeblood of the government, tuition and other school fees are the lifeblood of private educational institutions. As such, its prompt payment and certain availability is an imperious need for private educational institutions who heavily rely on a steady operating cash flow for its continued day-to-day operations,\” he added.
While there are proposed safeguards on the bills such as non-readmission to the next semester or school year and withholding of grades, certificates and diplomas, COCOPEA argued that these would not be enough.
\”These are reactionary measures that can be resorted to only after operational expenses have been incurred,\” the chairman said.
