UP Tuition System 2013:

a proposal to revise the UP STFAP

Executive Summary
The Socialized Tuition and Financial Assistance Program (STFAP) was introduced in 1989 when UPs
undergraduate tuition was increased from almost nominal to P300/unit in Diliman, P250/unit in
Los Banos, and P200/unit in regional campuses. The STFAP was envisioned as part of UPs effort to
democratize access and admission to its academic programs while promoting fairness and social
justice in the University, befitting its status as a state-supported institution of higher learning. (BOR
Resolution, 30 Jan. 1989)
Although associated with increases in tuition approved by the BOR in 1989 and again in 2007, the
STFAP, contrary to what some sectors allege, is not by itself a scheme for revenue generation.
It is a program intended to make UP education affordable, despite the tuition increases, for
students admitted into UP, particularly those coming from poor families. However, over the years,
implementation problems as well as conceptual issues have masked the merits of the program.
Recent reviews revealed weaknesses in the program, e.g., long and tedious application process,
mismatches between assigned brackets and actual financial capacity of students, and inadequate
benefits for students at the lowest bracket.
In 2011, UP President Alfredo Pascual initiated steps to review and reform the STFAP in order to
make the program more responsive to the needs of UP students as part of the BOR-approved UP
Strategic Plan 2011-2017. Utilizing the expertise of various stakeholders and insights from research
reports and various public fora, a reform proposal was developed to offer a comprehensive solution
to the challenges facing STFAP.
The proposal was based on the assessment of experiences with STFAP by the University Committee
on Scholarships and Financial Assistance (UCSFA), the Office of Scholarships and Student Services
(OSSS), and the Offices of Student Affairs (OSAs) (Gonzalo, 2013). Weaknesses of the STFAP and
related student financial assistance services, which were identified in roundtables held in 2012 and
in the independent research efforts by Adaro, Baez, and Bawagan (2012), Montevirgen (2012),
Magbata (2010), and Sempio (2011), were discussed by the UCSFA members in several workshops.
By October 2012, the UCSFA reached a conclusion on the key approaches for restructuring the
STFAP. Prior to the finalization of the Proposal, the recommended changes were presented to
students in February 2013 through a series of public consultations in UPs constituent units, hosted
by their respective University Student Councils and OSAs. The Proposal was presented to the
Presidential Advisory Council (PAC) on 14 March 2013 and 8 April 2013 for comments. The UP
President and his Executive Staff finalized the Proposal during the week of 8 April 2013.
Under the Proposal, the following changes and strategies are recommended to rationalize the STFAP
and related student financial assistance services of UP:
1. Use of the MORES-NSO instrument for socioeconomic classification (SEC) of Philippine
households, in lieu of the Predicted Income model and the Special Indicators of Income
currently used based on data disclosed on a 14-page STFAP application form. The MORES-
NSO SEC instrument, which has only 2 pages for its required data, was developed in 2012
by the Marketing and Opinion Research Society of the Philippines (MORES), the National
Statistics Office (NSO), and faculty members of the UP School of Statistics. The said
instrument is simpler and has been tested for its reliability.
2. Upward adjustment of the income cut-offs of Brackets A, B, C, and D to reflect a 30%
inflation rate between 2006, when the current cut-offs were established, and the end of
2012. This will address the drift towards the upper brackets as income rises due to inflation
adjustments.
3. Merging of Brackets E1 and E2 in recognition of the observation that families with an
income of up to P135,000 a year (approximately the minimum wage level) cannot sustain
the funding of the living expenses of their children who are college students in UP. This will
prevent such students from dropping out of UP despite their being tuition exempt since they
will become entitled to a living subsidy.
4. Streamlining and automation of the bracket assignment and appeal processes through
decentralization to the level of the constituent units. This will speed up decisions on
bracketing of STFAP applicants and appeals for lower bracket assignment.
5. Grant of a monthly allowance of P4,000 for 10 months each year to Bracket E students (up
from P2,400 now given to Bracket E1 students). The allowance may be in the form of cash,
meals, dormitory accommodation, etc. The proposed monthly allowance of P4,000 is equal
to that given to DOST scholars.
6. Implementation of supporting strategies that will:
Strengthen the internal controls through audit or verification of information
disclosure based on random sampling and imposing severe penalties for
misdeclaration
Enhance the related student financial assistance services (e.g., more need-based
scholarships, more and better paying student assistantships), to complement the
STFAP
Streamline implementation arrangements through automation of processes and
training of concerned UP personnel at the different CUs
Institutionalize the mechanisms to sustain regular review, monitoring, and
evaluation
Intensify information dissemination to the students and other stakeholders so as to
avoid miscommunication.
The proposed changes are expected to reduce annual income from tuition and fees from about P1.2
billion presently to a little less than P1 billion under the reform proposal, and entail an additional
expense of around P300 million a year for the monthly allowance of the Bracket E students.
The implementation is planned for a period of three years starting with the incoming freshmen
for the academic year 2013-2014. Elements of the reform will be gradually applied to the
upperclassmen over the three-year implementation period.